I found this article in business week discussing the process which Google uses to release new products to the market.Ã‚Â I found it somewhat interesting that the author talks about all the failures that Google has produced using this model, and they Google should be finding wasy to diversify it’s business model from its current base of Advertising.
I think the author of this article is far too focused on the idea that Google should be trying to expand its core business, when I believe that Google is focused on finding new places for its core business to operate.
Most of the “new” services Google is offering are nothing more then ways to extend the reach of their core business. Take for example Gmail, an amazing free mail service that has allowed Google another outlet for its advertisers to place ads. Through the beta we have seen more advertising, and better ad targeting due to information being collected about you through Gmail.
Another example of this strategy is Google Video which is now placing targeted advertising in videos in order to provide their advertisers with yet another venue to attract consumers. To me it just seems that Google has been looking for ways to increase how much money it can make from its core business, which of course is advertising.
These “new” services that Google releases, in my opinion, are just extensions of this core business model. So in the end isn’t Google doing a great job?