Google’s Three Options — Build, Acquire, or Steal
http://www.techsoomer.com/google-three-options-build-acquire-steal/
Google is the undisputed king of the internet. The word “Google” has now become synonymous with constant innovation and brilliant expansion. Once a young upstart, the company has quickly evolved into a publicly traded powerhouse in less than a decade. Google and their business mindset represent one that is truly ahead of its time.

Their “envelope-pushing” mentality has given the company some distinct advantages that most simply do not have. They lie on top of the technology world, standing tall as the true thought leader in the industry. Their employees are among the most selective and most prominent group of hires in today’s workforce while their company culture allows for an incredible amount of innovation. Along with their numerous core competencies, I’ve noticed how Google tends to exhibit three particular strategic options: build, acquire, or steal.

In this post, I will discuss how Google has executed on these three different fronts, and what other companies can learn from their actions.
Option #1 — Build
Most recent examples: Google Chrome OS and Google Wave

Google is no stranger to the building process. Google Chrome OS — a lightweight operating system, and Google Wave — a game-changing communications platform are ambitious feats to say the least. Despite any concrete release dates, both are projected to disrupt the industry in big ways.

It’s impressive to consider such undertakings when you stop to realize that an operating system and communication platform, for example, are well beyond Google’s core online identity. Google shows how existing businesses can deliver unique solutions to opportunities they may encounter as a business, even if those solutions may be outside the company’s “wheelhouse”. Google reveals the importance of building on top existing businesses; and how doing so may result in attaining goals otherwise unattainable.
Option #2 — Acquire
Most recent example: Google Voice [acquired from] > GrandCentral

In addition to building unique products, Google is notorious for acquiring promising, young companies. This tactic has proved successful in the past, becoming an extremely powerful and effective way for Google to increase their product base. Most recently, Google’s acquisition of GrandCentral in 2006 will finally take shape as Google Voice (currently in beta). With this $50mm acquisition, Google now looks to revolutionize phone management.

Acquiring companies is nothing new. It is a proven strategy implemented by companies looking to make power moves. Often times this presents a faster (and hopefully more cost-efficient) alternative from the ground-up building process mentioned above. It’s also an amazing way to interact with a foreign company’s collaborative process and intellectual property. Google has demonstrated that, at the correct price and time, acquisitions can propel one’s business to new heights.
Option #3 — Steal
Most recent example: Google Reader [features "stolen" from] > FriendFeed

Stealing is the final option I will discuss in this post. Despite the negative connotation associated with this type of activity, stealing is nothing new, especially in the tech world. Many businesses steal and Google is no exception. Most recently, we have seen Google take more than a few cues from life-streaming service, FriendFeed. Coincidentally, FriendFeed boasts a founding team comprised of ex-Googlers, which had many people asking the question: “Why doesn’t Google buy FriendFeed?”

Obviously Google saw an opportunity to enhance a product by incorporating some key features found in another web service. Apparently these upgrades weren’t protected or unique enough to stop Google from implementing them on their own. Whether you feel FriendFeed was ripped off or that Google acted intelligently, one thing is true: Google Reader has become better due to Google’s decision. And that’s what ultimately matters — delivering the best to your customers.
But Google is a complete anomaly…

We are all aware of the fact that companies like Google don’t come around all the time. Despite this truth, we can still learn a lot from such an innovative firm. Google’s strategic actions and progressive thinking creates a nice blueprint for entrepreneurs and startup companies to follow.

Here are some lessons that every business can take away from the actions illustrated above:

* remain aware of your competition at all times
* prepare to take action against competition whenever necessary
* never become complacent, instead, look to constantly reinvent yourself
* act like a startup
* invest in startups
* push the envelope beyond traditonal wisdom
* don’t just solve problems, create solutions