Is Google Heading Down the Same Path as Yahoo?

This post is a continuation of last week’s post, “What Cameron Learned From 10 Years of Doing PR for Apple” which ended by asking if Google could eventually end up like Yahoo. It was a sad ending for the company that was the Google of its day. Verizon paid only around $5B for it (it was worth $125B in 2000). One of the reasons commonly cited for Yahoo’s prolonged decline was simply “a lack of focus.” A recent New York Times article, “Yahoo’s Sale to Verizon Ends an Era for a Web Pioneer” has the details and there are some eerie similarities to Google.

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On the one hand, Google is doing well at the moment. Android is extremely popular, their stock price has tripled in the past three years, and their advertising business continues to generate massive revenue ($50B in 2015). However, the trap of losing focus is a seductive one. Are they beginning to head down the same path as Yahoo? There are some worrisome signs.

GSearchFirst, the “2016 Doodle Fruit Games” is certainly strange and complex. It even begins to break their strong philosophy of keeping their search homepage pristine. Also, if you have four hours to spare, you can compare Google’s “Code I/O” conference keynote to Apple “WWDC 2016” keynote. If you don’t, the TL:DW (too long, didn’t watch) version is that almost everything Google announced is still “coming soon.”

Even Google’s most recent major product releases have been met by yawns (and head scratching) by the Android community. Their new video calling app Duo seems to work well, but adds additional fragmentation to an already crowded product area. Are new Duo users really going to convince all their friends to switch from Skype, Facebook Messenger, FaceTime, WhatsApp, etc.? This is especially problematic when users have been burned by Google discontinuing products that don’t immediately succeed such as Hangouts, Reader, Wave, and others. Even if the Duo does generate interest, only 14% of Android users have upgraded to Marshmallow (the version released in October 2015) compared to 85% of IOS users.

GMailOn the positive side, Gmail is still the king of email solutions with excellent spam filtering and a clean interface  while Google Maps is still the best option for navigation with accurate routing and traffic information. So is Google doomed? Not in the near future at least. There is still no better option for searching the internet and that alone will insure that their advertising business remains insanely profitable. Is there reason for concern? Definitely. With the incredible pace of technological change, it wouldn’t take much for Microsoft Bing or a scrappy search engine like DuckDuckGo to make a dent in Google’s critical search business. Hmmm. Sounds like a good topic for the next post in this series. Have a great weekend!