Oct

19

Google Profit Up - Strategy Still Needs Clarification

October 19, 2006 |

Google released some very good financial figures for Q3 today. Any company that can look to its gross revenue rising 70% and profit rising 92% is probably in good shape. Marshall Kirkpatrick from TechCrunch points out an interesting fact, though:

CEO Eric Schmidt said in the company’s earnings call that the company’s success was based on five factors: growth in users, increased ad quality, diversity of business activity, a “blizzard of new product launches” and Google’s partner strategy. Schmidt cited partnerships with eBay, Dell, MTV, Fox/MySpace and the acquisition of YouTube in that order.

Sergey Brin started his discussion with the addition of historical archives in Google News, video search, Google Apps for Your Domain, and Google Docs. Brin said in response to questions that integration, or “Features not Products” is an important direction the company wants to move in for the future. Which is it? Diversity is our strenght or product overload? Maybe that just means we’ll see fewer new Google products, but they are glad they have as many as they do.

Exactly. Google needs to get on message. I think Google needs to focus on improving on current products more than working on new products. Unless they are going into the music marketspace, what are of the net don’t they have covered already anyway. Unless there is a killer product out there they just can’t hold back, try to work on the stuff that has potential, but hasn’t really lived up to expectations yet (remember the Google Pages hype?). Their second version of Google Reader shows the potential of such a strategy.

Techcrunch » Google Quantifies Its Momentum

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