Power Grab at Google

The change at Google with Larry Page becoming the company’s CEO may seem inconsequential but Information Consulting believes it is a significant development. The change reflects the market realities of intensified competition and increased regulatory oversight.

Even when Eric Schmidt was at the helm, its co-founders, Page and Sergey Brin, were essentially running the show. Page, in particular, has been the driving force behind the company. Schmidt, nevertheless, was the face of the company, and all major decisions flowed through him. Now that Schmidt is the company’s Chairman, he has a diminished role. Page’s ascendancy will accelerate decision-making and Google will adopt a more aggressive posture as it pursues new markets.

The change in leadership reflects Google’s desire to expedite decision-making and take a more proactive approach in confronting competitive threats and regulatory roadblocks. The U.S. Justice Department, for instance, is pondering whether to file an antitrust lawsuit challenging Google’s proposal to acquire ITA Software, Inc., a provider of online flight and ticket information. The proposed acquisition is being vehemently opposed by software and online travel companies including Microsoft Corp., Expedia Inc. and Sabre Holdings Corp.

Google’s rivals are employing every tool in their arsenal to try to counter the software giant’s market onslaught. Despite Google’s dominance of the search engine market, a resurgent Bing is beginning to gnaw at its market share. Its Google TV is facing resistance from cable companies making its future uncertain. Another ominous development for Google is its delay in introducing Chrome OS. The software, ostensibly designed for notebooks and netbooks, was expected to threaten well-established rival platforms from Microsoft and Apple. But reports suggest that Google is finding it challenging to pull it off.

However, not all is lost for Google. Its Android platform has been a runaway success, and its share of the Internet advertising market is growing. And with a more aggressive leadership, Information Consulting believes Google will continue as a force to be reckoned with.
www.information-consulting.com