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Google's fascinating when it comes to categorization. I think it's pretty clear that they make software. What's awesome is that they, as you say, don't moneti
by sachinag 17y ago
Google's fascinating when it comes to categorization. I think it's pretty clear that they make software. What's awesome is that they, as you say, don't monetize that s/w by selling it (like 37signals or whatever other internet company); they do so through the sale of advertising space. They're the biggest dichotomy between core competencies (software engineering) and monetization (ads) that I can think of, perhaps in history.
- nostrademons 17y agoGE: Core competency = training middle management. Monetization = jet engines, locomotives, formerly household appliances, etc. Berkshire Hathaway: Core competencies = Warren Buffett, AAA credit rating, willingness to keep former owners on as managers. Monetization = insurance, furniture, candy. WalMart: Core competency: Logistics management, supplier bargaining power. Monetization: every household good imaginable. Nike: Core competency = advertising. Monetization = sneakers & sportswear. Actually, seems like companies with wildly disparate core competencies and monetization schemes tend to do pretty well. Or maybe it's selection bias, and the ones that do well do really well but the rest fail miserably. Either way, I'm waiting for some company to close the Google -> Nike loop by leveraging their expertise in sneakers and sportswear to sell lots of software.
- stilist 17y agoLooking at it in a slightly different way, Nike+ uses expertise with shoes and expertise with interaction design to sell a decent amount of hardware.