Google is a search engine and the search engine is Google. That is the unbreakable spell of customer recognition that help Google retain its user. But, what if, the customer recognizes Google is about search engines only? Surely this will resist the expansion of growth stock – Google in this case.
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In This Issue
The Winner Takes All
It is not a secret that Big Techs try to become bigger by expanding their business out of their core. Amazon is pursuing the telehealth business through its Amazon care. Even, Jeff Bezos led company plans to go beyond the earth. Apple quietly develops its Apple car and e payment. Facebook is creating its own cryptocurrency Diem – which was formerly introduced as Libra.
These moves, supported by their tremendous resources, have spread fear to the incumbent for the respective industry. Question is, do the existing player really doesn’t have a stand against these disruptor devils? Is disrupting the industry really that easy? When Amazon says it will play in EV, does Amazon really make it?
Google’s Case in Expansion of Growth Stock: The Search Engine searching for External Growth
Besides Amazon, Apple, and Facebook, another Tech Giant that is eager to expand its business horizon is Google. As an “Android” developer, it is unsurprisingly that Google is hungry to dominate the smartphone market. If Apple with its iOS could make bucks via iPhone, Google try it with Google Pixel.
According to Google’s vision, The pixel will be how the Android phone is supposed to be. It s expected to become standard. Honesty, in our opinion, Pixel itself is a beautiful phone – calms color, and clean UI – But till today, Pixel seems unable to fulfill Google’s expectations.
Pixel isn’t alone in Google’s bleak story on pursuing business beyond its core competency.
5 years before the smartphone debut, Google with Samsung and Acer launches the competitor for Windows laptop: Chromebook. Take a laptop form, Chromebook deals with most of Windows laptop drawbacks. It has longer battery life, is less prone to viruses, is more affordable, and has great compatibility with Google products – making the integration with your Google account more seamless. Still, in far from being a serious threat for Windows.
Both Pixel and Chromebook line is far from bad. So, what’s wrong? These circumstances lead us to think that, what if, the barrier is not the product, but the customer perception itself? Google has created a high barrier to prevent competitors to eat its market share in search engines. What if, the barrier also prevents Google to expand its business core? What if, people think that Google is only about the search engines. No more.
Microsoft ever experienced this painful situation.
Microsoft’s Case in Expansion of Growth Stock: Seeing Out The Windows but Get Stuck.
Windows Phone is one device we really miss. The tile icon with live preview, this OS was a really fresh idea instead of a copycat. Even it was far from perfect – poor compatibility, misread pricing strategy – but if Microsoft could survive, we may see the Windows version of Apple seamless integration. But it needs time, and the customer somehow doesn’t give it.
Do they think that Windows is only about work and PC? Let’s explore.
To life beyond Windows, Office, and server, Microsoft also ever try to develop Windows OS for auto under the less cool name: Windows Embedded Automotive. It seems that the Redmond side never learns about giving names, right?
As expected, this auto OS is far inferior to Google with its Google Maps. And surely Microsoft won’t catch the boom of EVs.
Another notable “failure” is Windows Media Center. Before Amazon Echo and Google Home standing in your living room, Microsoft has an excellent idea to turn PC in the living room to become streaming devices.
But it seems that PC is too complex, and also the name.
The last Microsoft bet is its Surface line which seems promising for us. Microsoft’s vision is to make battery-efficient devices like Tablets or smartphones with real computing power like PC. Ironically, Apple solves this problem with its M series processor, today Microsoft still struggles with it – so, we need to wait, could Microsoft really make it?
Disney: Selling The fantasy
The most interesting example is Disney. The Mickey Mouse creator seems to be the antithesis of Microsoft and Google. Disney could sell almost anything. Well, we may guess that it is because Disney does not ha a score business. Its brand lies in the story, character, song, plot, message.
Disney could materialize fantasy into any form in this world. It could be Disney’s BoardWalk Inn or the skeleton of Pirates of the Caribbean.
Apple’s Case in Expansion of Growth Stock: Selling The Harmony
Another successful example is Apple. Begin with the Apple computer name, in the development, the computer is then dropped – all together with the perception. Begin with the iPhone debut, Apple gains a reputation as a customer-centric company with experience as the protagonist.
Apple successfully sells its iPad, AirPods, MacBook, Smartwatch. Tracking back, we believe that customer perception about Apple products has been developed when Steve Jobs launch his smartphone. Steve said that iPhone is a case for Apple OS. Since the beginning, Steve Jobs want to introduce Apple as an “experience” company.
But we don’t dare to speculate how far the Cupertino side could go, with now EV become one of their ambition. EV is surely a different beast especially when Tesla is there.
The Trajectory of Big Five: Jailbreak, When Asset Become Liability
Big Tech – Apple, Facebook, Amazon, Microsoft, Google – surely has a great opportunity ahead. But there is no such thing as unlimited market potential. To keep growing, someday they need to expand beyond their core or their former core. The first hurdle is ironically their own asset: Customer perception. Ho people recognize the brand. The Big Tech need to figure out how to prevent their asset become a liability when the perception locks itself.