Rivals Say Google Plays Favorites & What It Means To Your Business

The Wall Street Journal article by Amir Efrati says Google is after new sources of revenue.

Google’s actions signal cear emerging message:

Google will copy the most successful business models and compete with its customers.

Here’s the bottom line:

1. Google is a massive distributor


2. Large distributors take on clients; use the best to build their distribution channels and power


3. Then, replace them and/or compete with their own clients

Retailers do the same thing. When I was in the food business we’d sell to a large supermarket in the Northeast. They’d give you big orders. Watch how well you did.

Once they got you hooked on large orders, they’d start re-negotiating your price down until you had little margin left.

Next, they’d throw you out and start up a similar line.

You spent your resources being their R&D guinea pig.

Google is no different. Monoply-like distributors have done the same with energy, telephones, television, radio and computer operating systems.

That is why if you have a narrow niche you can dominate which has hungry buyers with buying power, the better off you will be.