Well, These decisions are strategic in nature. These decisions are made after thoroughly understanding the gains google can have. The ultimate objective may be profits bit in long run these companies may become strategic levers , and i dont see anything wrong in google's decision. The success factor alwys remains better management after acquiring else I am afraid they may not get fullest benefits
By
Shridhar Chandru, Business Developement Manager, ERP Consulting Company
| 09 07 2010 05:45:39 +0000
Dear Mr Arikrishnan, thanks for refer, however differ in view. New competition will crop even without Google acquiring as done in present case. And if they feel their basket gets wider and is likely to increase market share, it could be in consonance with chosen strategy. Even when not being fully aware of business dynamics of this business, would like to call it a good decision.
By
Ravindra Sharma, Managing Consultant, CHEF-India
| 09 01 2010 06:19:37 +0000
Well I think you have to see the assumed benefits of an acquisition and not merely on the face value of act of acquisition. Google wave might have shut shop but again that wasn't a huge dent on Google's perception of the market. Some venture's take off and other's don't. For Google buying these smaller companies is better and more targeted. If they went to acquire something out of line of their business model then that would be surprising. But this is a company which is taking on the likes of Microsoft and not too long ago Microsoft did the same with many such smaller companies.
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Abhimanyu Mukherji, Manager Information Systems Division, Bharti Walmart
| 08 31 2010 07:47:53 +0000
Yes I think its the right move. Google sees its value increasing the social networking market. With heavy duty convergence happening and the viewer-ship on these increasing so fast, it can only be said that things can only get better for Google. If these companies had something similar about their offering then it could be argued that they might be putting too many eggs in the same basket, but thats not the case. These are smart moves especially knowing the cost of acquisition for these small companies is not very high.
By
Abhimanyu Mukherji, Manager Information Systems Division, Bharti Walmart
| 08 31 2010 07:38:25 +0000
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I agree with your views Natteraja. see before buy out a due diligence is being done to asses all aspects of the company. What I think google is buying out all these companies so that there may not be any other big player in the field is left and in that case you get a huge customer base and growing and it gives you an automatic power yo yake on rivals and create your niche. Once all the above mentioned things are complete profit will autometically start coming in and you are on the verge of killing the rival/s.
By
Rathin Deb, Freelance Retail Consultant
| 08 31 2010 09:37:34 +0000
I don't think so they are doing the right thing by buying so many companies just to take on facebook, it will again be a case like Google wave which just shut shop recently. I don't see Google trying for a novice thing that they will offer users here, just something like facebook, then there will be no fun at all, they are spending millions of dollars to buy companies, if they use it in research of take in-house development route then something better they will be able to build, now they will just create something similar to facebook, Where is the google which used to give all the novelty stuff, with its search, with its email, with its Docs....so Google is not doing the right thing by buying all these companies at once, they are just reacting...
By
Mahalakshmi Subramanium, QA/QC Manager, Genpact
| 08 31 2010 06:49:00 +0000
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