Another Sort of Correct Google Analysis
January 24, 2009
I have to learn to keep my goose head down, shutting out the world beyond the pond filling with coal mine runoff. When I poke my beak out of the nest, I see headlines like this one: “What Would It Take to Beat Google?” The author is Don Reisinger, a person who contributes to CNet. You must read his analysis here.
The assumption for this write up is that Google is a search company. Advertising is intertwined with search. Because of Google’s dominance in search, Google has blended services. It is ubiquitous. It has a brand. It has cash. These are the barriers Google puts in front of competitors.
In general, Mr. Reisinger summarizes the received wisdom about Google. I think that received wisdom is a bit like taking a wrong turn and ending up where you wanted to be. Luck, instinct, brilliance–doesn’t matter. The result is the “right” one.
I think Google’s success in search and advertising is one manifestation of the firm’s broader achievement. Until analysts begin to dig into the details of Google’s infrastructure, most competitors will be wary of Google but make a fatal misstep. The competitors will assume that Google can’t impinge on businesses where search and advertising are not the keys to success. That’s where received wisdom will get an analyst in trouble. Google does pose a threat to business sectors outside of the search and advertising cone.
How? I cover a few of these sectors at risk in my forthcoming Google: The Digital Gutenberg.
Stephen Arnold, January 24, 2009
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