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Failure is cheap for google

September 8, 2008

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

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