Alphabet Google: From Search to Stuff in Market Nooks
October 12, 2016
I worked through some of the write ups about the Google tangible products. One excellent point appeared in a British tabloid in “Why Google May Have a Big Problem with Its New Pixel Phone.” The Pixel phone is expensive.
Here in Harrod’s Creek, we noticed that the blue model emulates the colors of the University of Kentucky.
Is Alphabet Google have a Barnes & Noble Nook moment. Building gizmos to take on market leaders seems so easy. How did that Nook thing work out for the bookstore company? Right. Bookstores are chugging along. The Nook? Hmmm.
None of the articles were scanned pointed out that Alphabet Google is trying to become something other than search. Sure, a Pixel phone helps generate search traffic, but we think there are other forces at work; for example:
- Apple envy. Thos margins on high end software are as tasty as a hot apple pie
- Control. The GOOG has been struggling to maintain its “ah, shucks” approach to lock in with digital services. Maybe gizmos are a way to achieve control without so much oversight from regulators.
- A lack of ideas. The Alphabet Google thing is not doing too well in the Facebook space. Amazon invented a new hardware category so the kids in Mountain View can do a me too, not a “Eureka.” Ah, imitation.
As the dust settles from the Google stuff blast off, one of the goslings asked, “Do you think Alphabet Google is falling into the Barnes & Noble Nook pitfall?”
Great question. Shifting from search advertising to making products is a bit of a change. Leopards can, I suppose, can change their spots. Easy in Photoshop. Tough in the real world.
Stephen E Arnold, October 12, 2016
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