Google is moving in many directionsâ€”mobile, browsers, productivity apps, operating systems, social. At first glance, it may seem like it is trying ever so hard to move beyond its giant one-trick pony: search. What people keep forgetting is that it is a pretty good trick. Benchmark Capital VC Bill Gurley reminds us how good this trick is in an excellent post that looks at Google’s market expansion strategy not as one of a series of aggressive offensives, but rather a highly defensive strategy.
Warren Buffet famously describes the best businesses as “economic castles protected by unbreachable â€˜moats.â€™” Search is Google’s economic castle (perhaps with other forms of online advertising such as display thrown in there), and everything else is a moat trying to protect that castle. Android is a moat. The Chrome browser is a moat. The Chrome OS is a moat. Google Apps is a moat. These are all free products, subsidized by search profits, that are intended to protect the economic castle that is search.
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Search Is Googleâ€™s Castle, Everything Else Is A Moat