The Economist has put together a comprehensive analysis of Google’s recent acquisition strategy- including last week’s $3.2bn purchase of Nest Labs.
It’s well worth a read not least because it introduces (to most of us at least) something called the "toothbrush test". It was conceived, it seems, by one of Google’s co-founders:
"Shortly after returning to being the firm’s chief executive in 2011, Larry Page said he wanted it to develop more services that everyone would use at least twice a day, like a toothbrush. Its search engine and its Android operating system for mobile devices pass that test. Now, with a string of recent acquisitions, Google seems to be planning to become as big in hardware as it is in software, developing "toothbrush" products in a variety of areas from robots to cars to domestic-heating controls."
It’s a pretty good test and begs the question: does your company’s products and services pass the toothbrush test? And how can you adapt them so they do?
On the Nest acquisition in particular and the strategic motivation behind the move, a consensus is coalescing around Google’s insatiable appetite for data, as well as marking the search engine firm’s first big move in to the Internet of Things.
Moreover, The Economist believes Google is morphing into a 21st century General Electric – "The new GE: Google, everywhere".
