Google and Microsoft

November 4, 2005 |

I was thinking further on Microsoft’s basic strategy, and how it pertains to Google. A thought struck me: if I were running Google, what would I do about MS? Direct competiton is probably unwise. You have cash, but you also know Microsoft will throw money at a problem until it goes away. So what’s the best approach?

I think the way to deal with the problem is to strive to be where they won’t go. Get Microsoft focused on an industry sector that you honestly don’t care about, but do just enough there to make them think that they’re cutting you off. Like, maybe, online office suites. After all, people can only pay attention to a few things at a time. Microsoft has a hell of a lot more money than you do, but they don’t have any more brainspace. Nobody can deal with everything all the time.

So if Microsoft is thinking about online office suites, there’s something else they’re not thinking about.


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