危 wēi  danger

Google remains a phenomenally successful firm – since its humble beginning in January 1996 as a research project by Larry Page it has literally changed the world.  It has successfully launched THE search engine, Gmail, Google Calendar, Google Docs, Google Talk, Google Chrome OS and Google Maps. It’s even become a widely used verb.  These services, plugged into its main revenue driver of advertising, have fueled its growth in market capitalization to $180bn. Google’s Android mobile operating system has begun to gain real traction too, LG alone has committed to launching 10 Android phones in 2010.  So, with Android clearly gaining traction, isn’t Google endangering its relationship with the handset manufacturers by announcing the launch of its own handset, the Nexus One, exclusively for sale online on its own platform and available unlocked?

机 jī opportunity

Alternatively, perhaps Google is actually investing in building a completely different business ecosystem, uncomfortable with the power of the handset manufacturers and carriers at present.  This might make the company comfortable with what are likely to be limited sales of the Nexus One at such a high initial price.  Instead of simply accepting the current industry structure, often with the carriers acting as the consumer’s first port of call, Google is establishing its own storefront to sell the Nexus One and more importantly an option to completely change the buying experience.  Perhaps this platform, which is guaranteed millions of click-throughs per day from the Google homepage, will in future become the consumer’s tool for choosing between a wide range of handsets and service providers.  If that’s the case, the Nexus One is simply a Trojan Horse and the sales numbers don’t really matter – the platform is where all of the value will lie.

How About:

• Questioning the whole business ecosystem in which you play, is it optimized for consumer choice and value?  (if not it’s likely to be disrupted)
• Asking yourself the tough questions and initiating change – even in the good times?

—