I’m perplexed.
We are smack-dab in the middle of the greatest technology boom in the history of mankind, in terms of what’s available to us. We can communicate, create, purchase and learn merely by tapping our collective index fingers a few times. I mean, seriously. This crap is great.
Here’s what baffles me though:
I don’t understand how the whole thing hasn’t crashed down upon itself. The fact of the matter is, just like everything else in this world, the Internet needs money in order to work, and it seems like every time I turn around, I have to give somebody a capitalism lesson. (Incidentally, if you tire of my capitalism lessons, blame Mark. He makes me give them.)
CobWEBs: Google are innovators but they are also market depressors
Download the MP3 here.
Today’s lesson has been spurned by the latest episode of the COBwebs podcast, where Mark Hopkins and Steven Hodson discuss Google’s venture into the GPS market, and its ensuing negative impact on the stock prices of Garmin and TomTom.
Mark see’s this as a solid business move, and I agree. Steven sees this as predatory practice, and the stock drops as cause for alarm. I have to take issue with that. In the interest of disclosure, I know Steven. We are very good friends. But I’m in a bit of a state of shock right now because he is a sharp dude, and the line of thinking he uses, which I am sure is shared by some, has never been more wrong.
That’s right kids. Every experiment needs a guinea pig, and seeing that I’m bored with picking on Scoble, we’ll use Steven. (Don’t worry, old friend. The doctor is in, and I shall warm my hands first.)
What we all must understand from the outset is that diversification is good. It’s the smartest of the “smart” moves. Any investment advisor will tell you that is unwise to put all of your eggs in one basket, because any market can tank at any time. If you dive into everything, you increase the chance for profit, while at the same time making it easier to absorb a blow. Think of it as a pounds of force per square inch thing if you are into physical science.
Now, with that metaphor out of the way, let’s look at what seems to be bothersome to Steven about this:
The Garmin and TomTom stock drops? Really who cares?
How is this Google’s fault? How can Google be held accountable if other companies crap their pants every time the boys in Mountain View whip out their giant G-penis? I mean, it was painfully obvious that Google was eventually going to get into the GPS business. I seriously doubt that Google Earth was an MIT prank. Honestly foks, the “Logical Progression Express” left the station a long time ago and somebody missed it. Tsk, tsk. (Turn your head and cough, Steven.)
The fact is, is that this is all on Garmin and TomTom. If they are so afraid of Google, They have to deal with it. Aside from that, honestly, what is there to be afraid of in the first place? The only reason Google is so awesome is because a bunch of geeks say it is. Other than search, and maybe Google Earth, I don’t think anything they do is all that special. Gmail isn’t a big deal. Google Wave came along, and my life hasn’t changed a bit. Is Google functional? Absolutely. Are their products earth shattering? Only if you’re Amish.
Google pulls the wool over everybody’s eyes with relative ease. Remember, kids. Google is the company that has succeeded in absolving itself from any qualty standards by simply classifying every product as beta for infinity. Five bucks says Google GPS ‘Beta’ will look like Pong, and some nerds will still think it’s the most awesome thing ever, because it has a ‘g’ on it. Suckers.
I am not anti-Google by any means, but I do know that in a lot of ways, Google is to the Internet as Oprah is to housewives. It speaks, and the drooling Kool-Aid drinkers follow. If a company wants to beat Google, then they should focus on just that, and stop crying about how big Google is and how unfair they are. Fairness is a lot like hope. It’s an excuse for people not to try hard. If Garmin and TomTom are really scared, I suggest they commence with the tryin’, and a-stoppin’ with the whinin’.
Don’t Blame Google for Being Google
Don’t blame Google because it’s are good at what it does. I think people get angry because they don’t understand what it does. If Google wants to become the “Wal-Mart of the Internet” as Steven Hodson claims, let it try. The free market always bears out in the end, and Google will succeed or fail based on what the market wants. People need to get over themselves. Regardless of how any of us may feel about Google, it’s built to be a profitable business, not the Habitat for Humanity of cyberspace. (Take two of these, Steven, it should break the fever.)
While it is true that Google gives a lot of stuff away for free, that is only because they have earned the revenue which has allowed them to do so. This ability alone should drive other companies to higher innovations, because while “free” is indeed hard to compete with, it doesn’t automatically mean “better.”
Garmin and TomTom make outstanding products, so if Google eats them alive, it’s not Google’s fault, it’s theirs. If these two companies perceive that a gauntlet has been thrown, its up to them to pick it up, not cower like frightened kittens. If they can’t handle it, they shouldn’t be in business in the first place.
Lead, follow, or get out of the way. That is the nature of the beast.
What Garmin and TomTom do about all of this is up to them, and nobody else.
Now, everybody be nice and send Steven Hodson a get well card.
