Google: Not Evil Enough?
Google needs to be more evil
CNN Money highlights the fact that Google are very limited in terms of revenue stream. They say Google needs to be more evil and must diversify rapidly to avoid potential catastropy.
Some are starting to wonder what the company can do to live up to its lofty valuation. After all, Google is an extremely risky company since it is a one-trick pony.
Granted, that pony -- search-based advertising -- is performing like Secretariat right now. Still, at some point, analysts think it would be wise for Google to do more to diversify.
"Search is the fastest growing segment on the Internet so near-term it's not going to be an issue," said Clay Moran, an analyst with Stanford Group. "But over time this is something they'll have to address."
It's interesting that they also quote some parts of the "our philosophy" page that includes:
It's best to do one thing really, really well. Google does search. Google does not do horoscopes, financial advice or chat.
That's soon to be not true at all im thinking, and needs to be not true. Rumours of Google IM, Google Music abound. (among many other things) and we've seen Google focus less and less on search since the IPO - only time will tell, but the next year/2 years will be very telling for Google i think.
Riding the wave is admirable from an investors point of view, but there's no escaping the truth in that story: Search is not enough.
"Search is not enough."
I disagree there, search may well be enough
Most big corporations get the bulk of their profits from just one product, then spend maybe 100 years trying to find the next money winner, and scarcely ever do.
Coke is an example, or Philip Morris with Marlboro, I have worked for both Johnson Wax, who get most of their profit from Pledge and Lever Brothers who got theirs from Persil.
One product bringing home the bacon has never in itself proved to be a weakness. Google's problem may more to be with the fast changing market that they are in. It is more likely that the competition could build a better alterative (outside the box) than with Coke or Marlboro - where the strong brand identity has carried them through.
Now Google, there is a strong brand identity!
one product
yeah but Googles one product is advertising - it isn't search based advertising and hasn't been for ages. Also from 'Our Philisophy' Google say
That's a two trick pony - search and advertising :)