3 ms·
This is what eventually killed RadioShack [https://www.bloomberg.com/news/features/2015-02-02/inside-radioshack-s-slow-motion-collapse https://www.bloomberg.com
by thaumaturgy 6y ago
This is what eventually killed RadioShack [https://www.bloomberg.com/news/features/2015-02-02/inside-radioshack-s-slow-motion-collapse https://www.bloomberg.com/news/features/2015-02-02/inside-ra...]. They found easy recurring revenue from cell phone sales and that nectar was so sweet that they couldn't justify the effort required to spend time at anything else in the garden. Then, wireless carriers all opened up their own stores and mall kiosks and suddenly RadioShack didn't have a business left.
Google isn't going to suffer this fate anytime soon though. RadioShack's peak revenues were $6.3 billion in 1996. If you crudely model a company's trajectory as a parabola in a gravity well, that $6.3 billion allowed RadioShack to coast through the air for another 20 years. Google has about 30x the revenue, and they have significant influence in multiple and related segments of the internet market.
Google could, tomorrow, make changes to email policy which would leave hey.com dead in the water, because between 40% and 60% of email traffic goes through Gmail, and email is extraordinarily sticky. If you can't send or receive email to Gmail users, Gmail users will tell you it's your fault, even if it's not. (Speaking from experience here.)
Chrome likewise is hovering around 65% market share. If Google decides they no longer want to tolerate ad-blockers, they can make a subtle change to Chrome that will boost their search engine revenues significantly (where they currently own about 91% of the search market).
Google's not going to follow a RadioShack trajectory, but they're never going to be anything other than an advertising company either, and that's going to leave some opportunities available for startups in Google's market.