- Jay Maharjan
Even though Google is downplaying the unexpected news, I think the shakeup will bring about fundamental changes to maintain sustainable competitive advantage for the mega search giant.
Google has opportunity to create other sources of major revenue centers – besides Adwords/adsense
Its true that Google Adsense adds tremendous value and that the way revenue grew was unimaginable ( and is still going strong). However, it is time that Google focus on handful of comparable, scalable money makers for the coming decade and phase out mediocre applications, services. Google needs to be conservative operation wise – like Microsoft has been and keep on creating and producing the calibers of products and services like Apple has done over the years.
The world of search will go through major transformation in the upcoming decade – the likes of Facebook and other social media platforms will be a major factor and will most probably, and potentially take away good portions of Google’s ad revenue. The analogy of the defense strategy that Google would have to adapt for search would be comparable to the way Microsoft weathered through the incredible threat from open source movements.
Right acquisitions – the key for steady growth for google
With the billions sitting in the bank, you can pretty much do whatever you want when it comes to building applications and services from scratch but smart M&A is critical to define and sustain the brand identity to become a legendary company.
Ongoing Innovation is critical – timely execution, monetization is everything!
Google has many cool applications, embedded services. Google ad revenue comprises of 95% of their total income for the company. At one point as a private start-up, Larry and Sergei were shopping to just sell the IP for search ( entrepreneur tv guest Andy Wilson, Management partner at Momentum Ventures in Pasadena recalls that Sergei and Larry approached him in earlier days at Overture Networks; Overture Networks, who were early developer of a similar search/ad model eventually got acquired by Yahoo for 1.4 billion). Google campuses have been home to some of the coolest Internet innovations in this past decade – but its time now and has the right opportunity, momentum that the ‘Google’ brand needs to focus and leverage on building a ‘great’ sustainable business with consistent revenue coming from notable, multiple sources beyond the adwords.
An Outlook on Larry’s Leadership
Having a co-founder at the helm can help re-shape the brand, refocus on mission, strategy for any company. Who better to articulate the vision for the company than the person who had taken the risk and envisioned the future in the first place. I think, with the great level of diversifying leverage for Google, Larry will have an opportunity to give back to the community, environment and for the greater good – by investing, educating on larger socio-economic initiatives – including eco, alternate energy, education reform, youth entrepreneurship.