Google Plus: A Strategic Outlook

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Finally Google started rolling out Google Plus. I have got an invitation used for a while, I would say the user interface are so good and Geeky. But I am not going to talk about the technical side or usability. I am looking at the strategic side and possible future scenarios of Google Plus. At the first point, Google is now trying to spread services like “peanut butter on a piece of bread”. Earlier Yahoo followed the same strategy and failed miserably. Now Google is following the same path by starting services like social network, Group buying etc.

What are the core competencies of Google?

These are the core competencies that made them successful in all search related products, image search, maps, Gmail, mobile search etc.

Google added new arsenal mobile operating system by acquiring Android, the idea was to benefit from cloud productivity and enterprise applications. But the reality is mobile manufacturers are more benefiting using Android operating system. Later now Microsoft and Apple coming out with cloud enterprise and productivity applications and they can acquire majority of the market. Here also Google didn’t acquired the competency required to sustain and make money from the mobile market. But Android is growing very fast and has been made positive impact on mobile manufacturing companies like HTC, Samsung, Motorola etc.

Now for Google Plus, Does Google have competencies to acquire the market share or Can Google build the competency to make that successful?

Facebook was successful because it was new to the customers and they build the competency of being the social network giant. Facebook played with human emotions because people like FUN, but people would not like it when it is repetitive. With the core competency to spreading content viral made Facebook so successful.

All of us know the rationality behind Google to become a social network giant. 25% of the display network is US is currently owned by Facebook. Google started social network Orkut before and failed the reason was the Google was not ready to be a market leader because of the lack of competency.

 

People use Google search because Google provide the best search results which is their core competency. If Google want to start un-related product or service that doesn’t require current competencies they have to find a way to build the competency before thinking of a product or service.

Adding friends into a circle or hanging out with friends through your webcam is no more FUN

Now consider our scenario Google Plus a hit.

Let us consider Google can build competencies to influence human emotions and become a social network giant. Google is promoting Google Plus to regain the display market share and produce more social friendly search engine results. In that case what are the competencies they can use to make Google Plus a good social network. One of the main competency they can leverage is the customers, they already have access to huge customers. They have to build a strategy to influence the customers using Google Plus. This competency should have to be build and use other competencies like skills of Google engineers, ad inventories to promote the product.

If Google Plus become success, people will start sharing contents naturally search engine results become more semantic which is a future of search engines. The success can produce good search results for customers. In that case, Google may become a threat to themselves.

Why Success of Google Plus may backfire?

Till date, Google’s most revenue generating platform is Google Adwords. Almost 95% of the revenue of are through adwords. By the success of Google Plus customers will prefer to go to the links that are shared by their friends. So Google will be able to produce more user friendly semantic search results. In that case, what will happen? Google Adwords revenue may go down because then users prefers to see the search results which are shared or recommended by friends through Google Plus.

I would like to hear your comments about this. Please share this post and leave your thoughts as a comment.

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4 Comments on “Google Plus: A Strategic Outlook”

  1. Good job Sanil! Interesting post!

  2. I think the strategy is to promote/sell their best client products via google checkout and become a future threat to amazon!

  3. I am insulted that Google only invited a few people to test there new beta social Google Plus, I wont be using the product- it should have been a invite for all people, just another point of Google’s to show they are all about the almighty dollar, people mean nothing – bottom line is revenue !

  4. It’s actually a cool and useful piece of info. I’m satisfied that you just shared this useful info with us. Please stay us informed like this. Thank you for sharing.

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