Friday, May 13, 2011

TECH Update: Google's Strategy Part 1


For anyone watching Google, a trend should appear rather quickly. The massive corporation is leading the world to the future of computing and they have an ingenious strategy. The events and innovations I list are not in chronological order but allow me to piece it all together (I've divided it into a two part series because there is too much to cover):


Google believes in the power of the web but more specifically, HTML5; a powerful new web based code system that allows for far more powerful internet applications. This allows websites to have cooler designs, support better graphics and most importantly, establish a better foundation for heavier content like videos (videos are/will take over the internet). 
Google has been taking strong action to get us to rethink what the web is capable of.  After it established its dominance as a search engine, the company expanded into emailing with its Gmail service. Today Gmail has grown astoundingly fast, is easy to use and is the 4th most used email client in the world (as of Jan 2010) with embedded chat through Gchat, Aim and even video conference calling. 

Since then Google has come out with a slew of other free products such as Google Documents, Spreadsheets, Calendar, and Presentations; all of which have progressed quite well. Made and saved online, the products you make are accessible to you from any computer (and other devices) with an internet connection.

Although you don't need a Gmail account to use any of the named products, today, all your work via Google products can be simplified and centered around Gmail. 

Then, in Nov of 2007, Google developed its own phone software called Android. This surprised many people and left analysts scratching their heads. By now the iPhone had already been introduced and Blackberries were gaining popularity. What surprised many people was that Google was going to give this software out to phone companies for free. Most analysts were surprised and dismissed Google's venture as an unnecessary move by a company whose core business was Search (even today Gmail and Google Docs, etc don't make the company money). 

Today, the strategy seems more clear than ever. Android holds 1/3 of the U.S. market and is soon to be considered by most estimates as the most purchased smartphone system in the world as it releases 300,000 Andoird systems per day. Google still releases new Android systems for free and did enter the smartphone industry late, but is the market leader now. How has this helped the company? Android users now get Gmail pre-installed in every phone. They have access to Google Docs, Spreadsheet, etc instantly and have Google's Search engine built into the phone. Android ads are now expected to generate a billion dollars by 2012 as it released new information that its search engine in Android systems have increased existing revenues by 2.8 billion. 

The Android system has introduced Google's services to countless people but has reaped great revenues in ads and search for the company. Then the company expanded its Android system (late in the game) to the slate market; a market created and dominated completely by Apple's iPad. If Google follows the same strategy it did with the smartphone business, it will eventually have full control over the slate market.

In Part 2 I'll take into account Google's Chrome, Chrome OS and conclude!

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