MappingTheWeb //

There are two things that Google needs to do in the next year to maintain its current momentum and market position:

1. Reinvent itself.
2. Explore new revenue channels. 

Yes indeed, Google needs to reinvent itself. People like to cheer for the underdog. Google used to be in that position. It is no longer the case. Due to its control and substantial market share, Google is now the big kid on the block. With this dominating presence comes a certain level of community backlash and disapproval. Microsoft experienced this and continues to do so.

Google has always had a habit of not only meeting expectations, but also exceeding them by a wide margin. Product launches have caused phenomenal buzz. Product quality has been second to none. Google needs to continue this tradition to be successful and well-liked by the Internet community. Marketing can only go so far. The products must speak for themselves. The lack of innovation, launches, and recent news (acquisition aside) has put the company in a stagnant position. I am not being critical - I am just making an observation. Having said that, I think that big things are in the works. I expect to see a full office suite (obviously), as well as a surprise in the coming months. A social network? A Google browser? A Google wi-fi network? I don’t know, but I have high hopes.

Secondly, Google needs to rethink its revenue model. Putting all their eggs in one basket has worked well for them up until now. Increased competition, click fraud, and lack of diversification are all now working against the company. Something like 98% of Google’s revenue is derived from advertising. This is not sustainable over the long term. The company needs to explore alternatives. Who would have ever thought Rome would fall? What about Enron? The big guy is never at the top forever. Nevertheless, things can be done to hedge against a collapse. For Google, this starts with revenue diversification and perhaps even an overhaul of the current AdWords/AdSense system.

If Google is able to reinvent itself and adopt new revenue channels, I think it has the opportunity to stay on top longer than it would otherwise. I have confidence that the current management team will make the right decisions. Although I doubt any of them read this blog, I hope that they are thinking the same things as I. It would be a pity for Google to run the same course as Microsoft.