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08 November 2005

Crucial That Google Feels The Heat of Competition

Heather Green on blogspotting poses an interesting question of whether Google is that innovative or is it simply being reactive to competitors and goes on to mention Tristan Louis' provocative analysis, which indicates that a Google podcasting service maybe it's next reactive innovation.
In his analysis he claims:
"Google does innovate in some spaces but has largely innovated in order to gain entry in markets that already existed. As a rule of thumb, they've been very smart at breathing new innovations in those markets. However, their competitors are generally quick to notice and are catching up."
This is something I have felt strongly about for a very long time and my views are largely rooted in my knowledge of free market economics, which is simply that competition is a major driving force of innovation. In most instances it also squeezes the best deal possible for customers or in the case of AdSense users the best revenue return possible. So for the benefit of us all, we need to nurture and encourage the competitive forces that be.


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