Stock in News: What Does Diversification Mean For Google (NASDAQ GOOG)

It’s worth examining Google Inc (NASDAQ GOOG)’s plans from the prism of core competence. Legion are the tales of companies that have lost focus and become extinct.

Think of Apple and its sorry state in the ‘90s when Steve Jobs made a comeback to the company and brought it back to life from the brink of death. Mr. Jobs famously drew four squares on a white board and noted two product segments (home and office) and two products (desktops and laptops) for Apple to focus on. And the rest is history.

Google has been fantastically successful in online search enjoying a near-monopoly status. Who else has been there? Why, Microsoft with its Windows PC operating system and its Office software suite. Microsoft was once so dominant and the U.S. Justice Department went after Microsoft to break it up for anti-trust reasons.

And then, under Mr. Steve Ballmer, so the critics say, Microsoft pulled one flop after another in both software and products and made consistently wrong calls on what the markets and consumers wanted. Microsoft is no longer a monopoly.

Google Inc (NASDAQ GOOG) News: Good News Ahead?

Google faces a peculiar situation where it still enjoys an enviable dominance in the online search space and rakes in billions in search advertising. The likes of Microsoft’s Bing are nowhere close to challenging its dominance and Yahoo has cleared faded even more.

However, growth in search revenue is slowing. As online marketers and digital marketing specialists discover more avenues to spend their marketing dollars — such as social media marketing with Facebook, Twitter, Pinterest and so on — Google becomes just one of the options rather than the only option.

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Google Inc Financial News (NASDAQ GOOG)

With Larry Page, one of the founders, back as its CEO, Google is throwing the gauntlet to competitors by trying to be the visionary innovator that it was 15 years back. It’s expanding into futuristic areas such as driverless cars, robotics, healthcare and genomics and so on.

These ventures are not without risks. They are clearly not part of Google’s “core competence” and their business benefit is uncertain at best. Google is neither an automotive maker nor a robotics or healthcare company.

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