Google one-trick pony-- Schmidt

The ambush of social networking sites have forced the investors, to ask Google about its plan to cope up with these sites.

Google justified the moving of former Chief Executive Eric Schmidt's into the role of a chairman and the repositioning of co-founder Larry Page as CEO and said that it was to increase the flexibility of the company, by fastening up the decision process.

Bloomberg Businessweek magazine also discussed this issue in a cover story, published about the company.

It described Google’s defense as "the ossification that can paralyze large corporations."

The magazine column blamed the lack of fundamental cultural inability in Google, as a bigger problem than lack of flexibility or the speed of its decision-making.

Schmidt had called Google one-trick pony when questioned about the probability, last year.

Keeping everything apart, the reality is that Google is performing wonderfully with the help of just one trick, with a market value of $200 billion and a revenue growth of 26 percent for the latest quarter.

Though some efforts need to be put in the search work and there is rivalry on the search part from Microsoft's Bing, still company’s valedictory is even far from people’s dreams.

The biggest problem of the company lies in its disappointment in creating any new field of business, other than keyword-related advertising which produces around 90 percent of the search giant’s income.

Though company is also making income through display advertising, YouTube views, mobile, etc., but that is negligible in comparison to the huge earning through keyword business.

Company needs new line of business
The Web giant which is well-known for providing ‘20 percent time’ to its employees, can turn its recently launched projects into magnificent services, with the help of its expanding Android efforts and other initiatives.

However, it seems to be based on only a little variation on the same trick, as these efforts would increase the traffic and thus, earning money but without producing any new line of business.

Many renowned companies have ventured on new business, keeping in view the growing competition in the market.

Microsoft also produced a new business called the Xbox consumer-gaming system, which was totally different from its core software business and also proved profitable for the company.

The cut throat competition unleashed in the market due to the huge success of various social networking sites, especially Facebook can be a big threat to Google.

The big question is if Larry Page will be doing anything to help the company in overcoming this threat.