Recently, we all know that Google is penetrating on mobile market (Android & G1 vs. iPhone, check out the war on the iphone app store), book (Google Book vs. Amazon), online payment system (Google checkout vs. PayPal), even operating system (Google Chrome OS vs. Microsoft) and now display ads (DoubleClick Exchange vs. RightMedia). People may wonder, what the heck this big guy doing? Is he dominating the world? Not really, at least to me, personally I think that it is doing “offensive strategy”.
Till now, whatever Microsoft, Yahoo or Wolfram Alpha is trying, Google is still number 1 in search, and its images in almost users are the search company, it is earning, and growing, based on search technology and search business. Google does know this, and it has never ever wants to change that image or turn around its core business. And, Google staff also know that many and many other firms are aiming to its current position. So, the best way to protect is to attack, instead of just focus on search technology, which is leading far away to the closet competitor, it is expanding and competing directly with others’ core businesses such as: display ads from Yahoo, operating system from Microsoft, books business from Amazon … Google is not crazy when aiming directly to their strength. With its reputation and power on technology, Google makes every one nervous when it is coming to their land, they can’t ignore, and must response to Google’s actions. Those guys needs to allocate resources to protect their business advantages, they surely understand that, just a careless moment, they will lose the leading position or a big market share to Google. The result is, they are not able to concentrate the whole power to compete on the search battle any more. Of course, Google can’t win on every battle, but at least no one can touch its search business.
Actually, this strategy is very clever, to make use of the financial power and market leader reputation. Whatever and whenever Google releases, will attract a lot of attention from media and users. More than that, it is beneficial for users. Other companies (Microsoft, Amazon, PayPal, Yahoo … ) needs to be more innovative, more creative to keep their users, it is a positive competition, at least for users, like us. Microsoft is working hard on Windows 7 to make sure it is running well on a light-weigh system (net book, old machines … ), which never happened on previous versions. Apple is continuously upgrading iPhone OS and iTune to beat the Android in the water.