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failure is cheap for google

09/08/2008 09:35:25 PM
Many strategists have complained about Google's lack of focus and its constant charge to invent or half-invent new tools and features, many of which never catch on.

Most see this as a failure and call the giant company a "one trick pony", an organization that has an inability to have a "second hit."

However, leave it Nick Carr to set the record straight with some smart thinking on why they are doing this and explaining how, in essence, Google can't not be measured or compared with other companies or other strategies because of it's scale and power.

It comes close to controlling the internet, so finding more cheap/free/affordable ways for people to use it, is the company's strategy.

"Because the marginal cost of producing and distributing a new copy of a purely digital product is close to zero, Google not only has the desire to give away informational products; it has the economic leeway to actually do it. Those two facts — the vast breadth of Google’s complements, and the company’s ability to push the price of those complements toward zero — are what really set the company apart from other firms. Google faces far less risk in product development than the usual business does. It routinely introduces half-finished products and services as online “betas” because it knows that, even if the offerings fail to win a big share of the market, they will still tend to produce attractive returns by generating advertising revenue and producing valuable data on customer behavior. For most companies, a failed launch of a new product is very costly. For Google, in general, it’s not. Failure is cheap."

Nick Carr- The Omnigoogle




Posted by Ed Cotton
Tags: google (17) carr (1)

Articles for tag carr (1 total).