Thursday, January 27, 2011

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

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