Google’s Grand Strategy

Google’s stock is now up 25 per cent compared to the same time last year indicating an era of new conquests for the unrivaled giant of the World Wide Web.

Google’s recent performances coupled with its ambitious scanning of global high-tech innovations will likely keep the momentum going and thus solidify the company’s uncontested place as the top search engine and the most desired employer.

The soon to be released Nexus 7 is part of Google’s strategy to hedge its own value. Instead of relying solely on advertising revenues, the company is making concerted efforts to conquer the world of hardware by launching products that exist outside of the interactive realm and by acquiring companies that produce devices that are not directly related to its own search engine model and online advertising.

Sink or Swim Strategy

For instance, Google has made 15 acquisitions during the first half of 2013. One of these acquisitions was Waze, an Israeli traffic report app for which the company paid $966 million, just below the magical one billion mark.

“These acquisitions generally enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product offerings,” Google said in a statement.

Indeed, for the keen observer, Google’s strategy seems to be anchored in a wide ranging effort to be everywhere. There is nothing specifically revolutionary about such a strategy since the first rule of running a successful business is to keep growing. Like a big hungry shark, Google too will die if it stops swimming.

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Stockholders Grinning

Google enthusiasts are undoubtedly grinning as the company is launching one exciting product after another. Its new line consists of Android 4.3 OS for smart phones, the Chromecast device and the Nexus 7 tablet – all highly sought after products aiming to boost Google’s sales and ultimately the value of its stock.

Since the company’s gadget production is growing every year, it is important to remember that Google is more than just an ad revenue generating oddity. It will take time before Google will see concrete of constant flow of profit from its gadgets to merit a comparison to companies like Samsung and Apple, but if the present drive is any indication, Google’s launching of the three – Chromecast, Android, Nexus – products is an important sign of things to come.

To be more precise, now seems to be the time to go all in or drop GOOG altogether. The company is at a crossroad and whether it will sink or swim is a question for investors feverishly considering the status of Google in their portfolios.

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