Myths have the propose to teach us, showing us the wisely path and where we are taking bad decisions or let our ego take the wheel of our strategies.
The myth of the Hydra of Lerna, a serpentine water monster in Greek mythology, which possessed many heads, for every head chopped off, the Hydra would regrow two heads. Can be applied to Google as a company, so let's run through this theory.
The point that Google encounters itself it's quite interesting, the company evolved a lot since the beginning no doubts about it. But like the Hydra that has many heads, and that looks like a sharp point at first glance, Google seems to have to find strongness by acting in so many fronts, but we must ask if this is healthy for the company to operate in this way?
- Acquisitions: Google has acquired 233 organizations until now. Those acquisitions can fit in 7 groups such as Search; Chrome & Apps; Mobile; Ads; Youtube; GeoCommerce and Social.
- Google Ventures: The department has invested or is currently investing in 368 companies, in divisions like Consumer; Life Science & Health; Data & AI; Enterprise; Robotics & Hardware.
- Capital G: The capital fund financed by Alphabet, has actively invested in 36 companies.
- Games: Google revealed in 19/03/2019, its gaming platform Stadia. A big step towards the game market ( a $135 billion industry).
- JD.com: Back in 17/08/2018, Google looked to invest $550 million in the titan of Chinese ecommerce and this year is to deepen the partnership, Google has started to sell around 500 products in the JD e-commerce environment.
We may in the future going to track and break down each company healthiness that Alphabet has influenced, buy acquiring, invested or partnered.
But the Hydra history didn't end well. The ability to multiply heads ended up didn't turn it in an invincible creature. If the heads cant eventually protects the body, the whole thing goes down.
Recently Google it's taking a lot of damage in the core, coming from various directions. Like the fines from the EU, problems with users in the video platform (Youtube). And other significant threats like antitrust laws and political interests and agenda are lining up against the company.
18/07/2018 - EU slapped Google with $ 5 Billion fine, for competition abuse, related to its Android phone software.
20/03/2019 - Google was Fined $1.7 Billion by European regulators, that said Google had violated antitrust rules by imposing unfair terms on companies that used Google`s search bar on their websites in Europe.
20/03/2019 - A Italian terrorist that had held 51 children as hostages, has published a video on Youtube about the attack. One week after the incident from the mass murder that has broadcasted on Facebook.
Another threat is the polemic of Article 13 in the EU. That could restrict a massive profit from the company, since by the words os Susan Wojcicki, CEO of Youtube, that could push the platform away from the continent since would be impossible to deal with all the liabilities caused by the precedents opened by the article.
So we must don't be enchanted about all juggling, of investments, partnerships, and acquisitions if that means more exposure for threats than the ability to provide resources to the central core. The Hydra ended came through the strength of Heracles in neutralize each head and buried the body.
Thanks for reading, leave a comment if you want and have nice trades.
The myth of the Hydra of Lerna, a serpentine water monster in Greek mythology, which possessed many heads, for every head chopped off, the Hydra would regrow two heads. Can be applied to Google as a company, so let's run through this theory.
The point that Google encounters itself it's quite interesting, the company evolved a lot since the beginning no doubts about it. But like the Hydra that has many heads, and that looks like a sharp point at first glance, Google seems to have to find strongness by acting in so many fronts, but we must ask if this is healthy for the company to operate in this way?
- Acquisitions: Google has acquired 233 organizations until now. Those acquisitions can fit in 7 groups such as Search; Chrome & Apps; Mobile; Ads; Youtube; GeoCommerce and Social.
- Google Ventures: The department has invested or is currently investing in 368 companies, in divisions like Consumer; Life Science & Health; Data & AI; Enterprise; Robotics & Hardware.
- Capital G: The capital fund financed by Alphabet, has actively invested in 36 companies.
- Games: Google revealed in 19/03/2019, its gaming platform Stadia. A big step towards the game market ( a $135 billion industry).
- JD.com: Back in 17/08/2018, Google looked to invest $550 million in the titan of Chinese ecommerce and this year is to deepen the partnership, Google has started to sell around 500 products in the JD e-commerce environment.
We may in the future going to track and break down each company healthiness that Alphabet has influenced, buy acquiring, invested or partnered.
But the Hydra history didn't end well. The ability to multiply heads ended up didn't turn it in an invincible creature. If the heads cant eventually protects the body, the whole thing goes down.
Recently Google it's taking a lot of damage in the core, coming from various directions. Like the fines from the EU, problems with users in the video platform (Youtube). And other significant threats like antitrust laws and political interests and agenda are lining up against the company.
18/07/2018 - EU slapped Google with $ 5 Billion fine, for competition abuse, related to its Android phone software.
20/03/2019 - Google was Fined $1.7 Billion by European regulators, that said Google had violated antitrust rules by imposing unfair terms on companies that used Google`s search bar on their websites in Europe.
20/03/2019 - A Italian terrorist that had held 51 children as hostages, has published a video on Youtube about the attack. One week after the incident from the mass murder that has broadcasted on Facebook.
Another threat is the polemic of Article 13 in the EU. That could restrict a massive profit from the company, since by the words os Susan Wojcicki, CEO of Youtube, that could push the platform away from the continent since would be impossible to deal with all the liabilities caused by the precedents opened by the article.
So we must don't be enchanted about all juggling, of investments, partnerships, and acquisitions if that means more exposure for threats than the ability to provide resources to the central core. The Hydra ended came through the strength of Heracles in neutralize each head and buried the body.
Thanks for reading, leave a comment if you want and have nice trades.