Google eyes Southeast Asia

There are many reasons why Google is such an incredible company.  One of those reasons is explained by Jim Collins in his best selling book, "Good to Great." Mr. Collins explains that great companies are more like hedgehogs - simple, doydy creatures that know "one big thing" and stick to it.  With over 80% of the search engine market share, I'm pretty sure it's safe to say Google has figured out its "one big thing" and has stuck to it.

Google has decided to increase its industry dominance by targeting Southeast Asia, where internet traffic is rising and the use of technology is gaining speed.  In fact, Malasyia's internet penetration is around 60% and its mobile penetration is around 100%, meaning almost everyone carries a cell phone. Ultimately, this means that most of the internet users in Southeast Asia will be accessing the internet through mobile phones rather than PCs. 

So what does this mean for Google?  Well, as we learned in class, Amelio described the company Apple as a boat with a hidden treasure on board.  However, this boat also has a hole in it and everyone on board is rowing in different directions. If Amelio used the boat analogy with Google, I'm pretty sure he would say something like this,  "Google isn't a boat with a hole in it, it's an aircraft carrier with planes, helicopters and rafts (all of which have multple treasure chests on board).

Yes, Googles seach engine is great (aircraft carrier), but it's expansion to Southeast Asia also explains its creative strategy (plane).  This is also evident in its Android products (raft) and Google TV (helicopter). By expanding to other niches, Google has and will continue to create future profit pools that will again, increase its industry dominance.
http://online.wsj.com/article/SB10001424052748703293204576105652105764250.html

Time to start selling shares of Apple?

I generally prefer to analyze companies that aren't incredibly popular to the public eye, but this story has intrigued me.  Steve Jobs, Apples beloved CEO has decided to take his second medical leave of absence in the last two years. The timing of this announcement is interesting, as it came the day before quarterly profits were announced to the public.  Profits surged 78% during the 1st quarter to $6 billion as consumers clamored for iPhones and iPads.  However, the fabulous news of the company’s profits was overshadowed by the announcement of Steve Jobs.  In fact, Apple's shares dropped well below 3% (1/18/2011) to roughly $325. 

Should investors be worried about the absence of Steve Jobs?  No. Think about the timing of this announcement (which helps prove Steve Jobs is a level 5 leader). Just one week ago, Verizon announced the long anticipated arrival of the iPhone.  Analysts believe that the iPhone's market share will increase from 25% to 36% of all smart phone users.  Also, as stated previously, the announcement came a day before quarterly earnings were publicized. Net Income has rocketed up to $6.43 a share while sales soared above 71% to $26.74 billion. The statistics prove that Apple continues to sell merchandise based off its different and broad scope.  Steve Jobs obviously cares more about the overall success of the company than himself and has put the company in good hands with Tim Cook.  I personally believe this “worry stage” of Steve Jobs will likely come to a hault, as the company’s numbers will  soon overshadow his temporary absence.  As for now, I would recommend holding onto my shares of Apple.
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/19/AR2011011900080.html