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The unmatched success in web search and advertising, the core competences of Google,provided every opportunity and power to expand their business. From one aspect, expansion isnecessary; everyday new ideas create new technologies and bring new dimensions to theinternet world, and the companies have to develop long-them plans and future objectives totake a better place in the competition. From another aspect, Google had everything, technology,popularity, world’s biggest user base and billions of dollars. They used these funds to improvetheir distinctive competences and comparative advantages; in addition they made severalinvestments into new fields. Diversification has become their new strategy.Google always kept up investing in the core business; they improved the search engine,continued to index every possible contents including articles, books and even photos. They alsodeveloped new advertising features such as sponsored links, Adwords Adsence, Ad Innovations.To be in the top search results of Google became an important goal for websites. (Even this hasbecome a separate business field) In addition to investing in core businesses, they successfullycompleted several mergers and acquisitions in different fields. In the beginning they focused oninternet based businesses to gain more data; because data means more people, markets,options and future. In 2001, Google acquired a Usenet archive; an archive which has containedmore than 500 million discussion group posts. They, clearly, acquired a community. In 2003,Google acquired Pyra Labs, the developer of Blogger. This time, they acquired a more successfuland populated blogging platform which enabled reaching more users and a better competitiveadvantage, and blogging became a new trend. In 2006, Google acquired YouTube. This one wassurprising; people criticized Google for wasting money since they have a similar platform,Google Video. This investment was to acquire an already available platform with millions of userand videos. They chose to have a well settled and successful business in a snap rather thanfocusing to enhance their own platform. Besides, they acquired a portfolio of millions of onlinevideos, and then, they indexed these videos and combined this platform with their searchengine business. They also acquired some websites, projects and platforms such as Kaltix,Picasa, Keyhole, Dodgeballs, Nevenvision and Writely. These acquisitions aimed to bring newtechnology and developers to the company. Data, users, technology and intelligence are themost precious values in 21
century, and Google’s acquisition strategy is based on expandingthese values. After having an indispensable power in the internet world, their strategy shifted todiversification. They used their assets to invest in new technologies other than internet, but thesame time, related with internet; the theory is sound, the fastest, easiest and variedcommunication channel and network between all humanity, internet, is inevitably the futureitself; and you can build everything that humankind ever created since the beginning of historyon internet. It is a new dimension; shopping, trading, manufacturing, marketing, mailing,talking, watching, reading, simply everything can be reshaped and implemented to thisdimension. And if you hold a significant part in this traffic, your options are limitless. Googledeveloped and still developing new ways of talking, chatting, watching TV, making research,publishing and making payment. The limit is truly their imagination.