Understanding the GoogleJuice

I came across this very thorough presentation on slideshare that analyses Google’s strategy in detail.

There are many insights in the presentation. Some of the most profound are the identification of six key success factors for Google (or for that matter any web based business).

1. Scalability 4. Openness
2. Network Effects 5. Co-creation
3. Data Mining 6. Business Model

For example, for Google advertising is not a market but a business model. In support of this approach, Google buys a significant amount of traffic from providers all along the content delivery value chain. Google is doing a significant amount of work to disrupt the ‘closed mobile industry value chain’.

If one considers recent Google moves since the date of this presentation, I think this presentation is still spot on. For example, Google Voice, which recently became generally available, can be summarized as a disruption of the mobile value chain. (from my signup email for Google Voice, my comments in maroon)

  • A personal phone number that rings all of your existing phones when people call (breaking the tie to a specific provider)
  • All of your voicemail in one inbox with unlimited online storage and free voicemail transcripts sent to your phone and email (network effect with Google at the center)
  • Low-priced international calling to over 200 countries and free SMS (direct attack in the most profitable components of a typical Telecom Service Provider)
  • Other powerful features like the first phone spam filter to protect you from unwanted callers, the ability to ListenInTM on your voicemail messages while they are being left, conference calling and more  (breaking down the walled garden)

This presentation provides a useful template to examine web-based businesses and for the Telecom Service Providers to develop initiatives that while not guaranteed of success would at least be on the same playing field as Google.

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