OUTthink the Competition – How Google became an 800 lb Gorilla

I am an avid reader and recently purchased the book – “Out Think the Competition” by Kaihan Krippendorff.  Kaihan uses Google as one of his examples to illustrate the point of out thinking the competition:

The Lesson for OUTthinkers in Business

1. People grow rigid: they accept a certain way of doing things (I call this the 1-2-3) is the best and stop seeking better options.
2. Someone questions what others have accepted and finds a new strategy (I call this the fourth option)
3. The new strategy proves superior.
4. The competition tries to copy it but can only do so slowly.

The Four Challenges for OUTthinking the Competition

1. You must first recognize where rigidity has taken hold.
2. You must then find a new strategic option (a fourth option) that others ignore.
3. You must figure out whether this new strategy is superior.
4. You must slow your competitors’ ability to copy your innovation.

How Google OUTthought the Competition

1.  People grow rigid: they accept a set way of doing things to be the best and stop seeking better options.

2.  Someone questions what others have accepted and finds a new alternative.

Larry Page and Sergey Brin, two Stanford University students, remain infatuated with internet search.  They develop a new way to structure the search process that filters the most popular websites toward the top of a list of search results.  It measures a websites’s popularity by the number of other sites that link to it.  They name the search engine Google and market it to Internet portals, convincing them to outsource their search activities to this simple, pure search service.

3.  The new way proves superior.

Google results are superior to its alternatives.  Soon portals around the world signs deals with Google to outsource their search business.  Google’s offering is designed to be an obvious choice for portals.  Portals can simply direct the search queries its users enter in the search pane to Google, which produces results and feeds these back to the portal.  Google appears exclusively interested in doing search (business portals are happy to exit) showing no intentions to sell advertising, which would put it in competition with its own customers.  When Yahoo! and Alta Vista sign deals to outsource their search to Google, Google instantly becomes the largest search engine in the world.

4.  The competition tries to copy it….but can’t.

In 2003 Google launches AdSense and starts selling advertising directly to customers.  As soon as Yahoo! learns of this, it cancels its contrat with Google and returns to its previous search partner to offer a compelling alternative to Google.  Other portals do the same.

But by this time, Google has already taken a lead too long to close in on them quickly.  Customers have grown accustomed to Google’s search results and now seek it out, leaving whatever poral they have first landed on.  Furthermore, because the Google engine learns with each search, it has now gathered experience none can match.  This virtuous cycle – more visitors – compounds its advantage over copycats.

Today, Google generates more than 95 percent of its revenue from selling advertising on its search business.

Stratagem Tool

Drawing on Kaihan”s research into the underlying strategic patterns of successful organizations, this tool will help you see new options for outthinking the competition. It will seed your thinking with ten strategic patterns, chosen specifically to match you strategic situation. Work through these patterns and you will see new possibilities for achieving your online goals in 2012.

Google OUTthinks Facebook & Twitter

Cyrus Shepard recently shared an excellent post on SEOmoz showing how Google+ Uses SEO to Steal Search from Facebook and Twitter.  Cyrus breaks down how Google is out maneuvering Facebook by using SEO strategy to outrank Facebook in search results.

I’m sure that many of you are setting goals for 2012.  Hopefully this article and Kaihan’s book can help you in those efforts.

What strategy – thought leadership books, tools, sites, blogs would you recommend discussion here?

About Cody Baird

Founder of milkmen.com I am passionate about technology and software that simplifies & improves life. I write about inbound marketing, SEO, local search, technology, start-ups, and entreprenuership.

To relax I read on a variety of subjects, go golfing, hiking, running, & anything outdoors.