This week’s reading “Seven Ways to Fail Big” is very interesting to me. We have talked a lot in the past 4 weeks on what are the right things to do, what should be the rules to follow, what could be used as an assisting tool for decision making. But we haven’t talked about what we should NOT do. The seven ways to fail big make me start to think about this question. The examples used in the article is quiet impressive. Companies suffered huge economics lose, or price plummeted, or even bankruptcy due to stepping in the seven wrong ways. However, from my point of view, the seven ways itself is not wrong. What is wrong is how the company conducted it. For example, after carefully investigated, combined a huge number of small business into a large one did not hurt google at all.
The following link listed the acquisitions of google since 2001.
By June 9th, 2011, about one week ago, google have purchased 98 small companies or start-ups to integrate with its current features, apps, or to provide new features. How Google performed so far? The stock price for Google today is $503.91, comparing to Apple with $328.21, Amazon with $190.18. (The fun part here is, now I am using Google Finance now to conduct the analysis. Google was just an on-line searching system. But I have to admitted, I cannot live without it due to the varied functionality it providing, which is benefiting from the huge acquisition.)
The most popular case should be Google purchase Youtube for $1.65 million in 2006. The following article is a good summary of what Google can get and Youtube can get through this acquisition. 5 years after this purchasing, history has proved this is definitely a win-win case.
The hottest acquisition news within this month is definitely Microsoft bought Skype for $8.5 million. We have discussed in class what the strategy was behind it. The following article comments this is due to competition with Google and Facebook. Therefore, this could be a hush decision. Will Microsoft face the big fail as Loewen Funeral Homes? Time can tell.
Malik, O. (2011, May 9). Why Microsoft Is Buying Skype for $8.5 Billion. Retrieved June 15, 2011, from gigaom: http://gigaom.com/2011/05/09/why-microsoft-is-buying-skype-for-8-billion/
Press, A. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved June 15, 2011, from U.S. Business: http://www.msnbc.msn.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/
Wikipedia. (2011). List of acquisitions by Googl. Retrieved June 15, 2011, from Wikipeida: http://en.wikipedia.org/wiki/List_of_acquisitions_by_Google