WCN Transmedia Group was so very excited to gain access to this information from Dreamforce. Just prior to reviving this information I was talking to our Chief Technology guru about creating a FREE User Generated Content that can be monetized using a Transmedia Brandcasting Strategy. This Free approach at Google is a great example of how The Customer Advantage and Social Dish are using the Groupon Daily Deal Business Model. Now imaging Google Offers be connected to WCN’S Platform for both High Quality Hollywood Content & YouTube User Generated Content.
Exciting times ahead.
Eric Schmidt Explains The Brilliance Of Google: You Can’t Undercut Free
Matt Rosoff | Sep. 2, 2011, 2:40 PM | 126 |
|Image: Salesforce via YouTube
Eric Schmidt at Dreamforce 2011″ />Google chairman Eric Schmidt talked about a lot of things yesterday on stage at Dreamforce, but one of the most interesting bits came when he explained how Sun (where he started) lost to Microsoft — and how Google won’t make the same mistake:
It never occurred to me… that somebody else could build a system that was as powerful as the ones that we had that were Solaris based…that they could build one cheaper that had similar functionality. One of the most important lessons for business is there is a clever competitor who can come in and undercut your pricing point with new technology….At Google I think we understand that very well because we largely start with the price of free, which makes it difficult to undercut our pricing too much.
This was Google’s Android strategy in a nutshell. It was concerned that Apple would dominate the mobile Web, so it released Android at no cost to competing handset makers — a genius move, which helped Android become the most popular smartphone platform in the world in just a couple years.
But that strategy doesn’t work so well when you have physical goods to sell. With Motorola, Google is in the phone business. Subsidizing hardware is an expensive prospect, as Microsoft learned after sinking more than $9 billion into the Xbox before turning it into a (low-margin) profitable business.
Google can afford that kind of investment, but it’s a dramatic change to the company’s traditional business model.
Schmidt had a lot of other interesting tidbits to share, including harsh assessments of Steve Ballmer and Sarah Palin, the possibility that we’re “on our way to having a generation of people who will never have jobs,” and wisdom for everybody: “life is short — you should spend time working with people you enjoy.”
The whole conversation is here: