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Google: Only One Revenue Stream Can Bring About Disruption

kidmercury | 26 October, 2005 22:00

Google continues to release new products, and while this last one is quite compelling, it does beg the question: when will the firm develop a stable revenue source that does not depend on pay per click? Or will it ever?


My guess is that internally, Google is almost incapable of developing a revenue stream that is does not depend on pay per click. I imagine by now there are countless business processes dedicated towards cultivating the best pay per click revenue model possible. Developing a new way of making money is going to require new business processes, which are generally quite resource-intensive to cultivate, if possible at all.

So what should the firm do? Create a spin off. As innovation mastermind Clayton Christensen suggested in his book The Innovator's Solution, it is often best for firms to create a spin-off when they need to disrupt themselves. Google is only cultivating its specialities more and more, but the company isn't going to be able to adjust with the times if they only have one real source of income.

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