Google has just announced it is buying a company specialising in
mobile technology.  AdMob, the Silicon Valley company specialises more in display advertising while Google specialises in Search.  Read more details in The Guardian
This is just one more acquisition by Google who has already spent more than several countries’ GDP acquiring expertise. The interesting part is that often the knowledge bought at great cost is often given away for free later.
The company with the Analytics technology, for example, used to charge a considerable sum for the use of the tools – now Google makes them available for free.
Buying up competition or related companies and then charging little for use is a very unusual strategy, but an excellent business model for domination.
The list of Google purchases is extensive. Some of the better known include YouTube, Facebook and Blogger the blogging platform.
There is a recession, and it could be the perfect time for small companies to take a leaf out of Google’s book. First you make a lot of money from the core business (Adwords, if you are Google) and then that funding allows you to provide an even better customer experience by acquiring related businesses.
What are you waiting for?!
Wed, Nov 11, 2009
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