"Google’s free navigation feature announcement dealt a crushing blow to the GPS stocks. Garmin fell 16%. TomTom fell 21%. Imagine trying to maintain high royalty rates against this strategic move by Google. Android is not only a phone OS, it’s a CE OS. If Ford or BMW want to build an in-dash Android GPS, guess what? Google will give it to them for free. As we noted in our take on the free business model, “if a disruptive competitor can offer a product or service similar to yours for ‘free,’ and if they can make enough money to keep the lights on, then you likely have a problem.”
Nice to find Bill Gurley again, somewhere in the past he fell off my radar.
Monday, November 2, 2009
* About Bill Gurley Google Redefines Disruption: The “Less Than Free” Business Model
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment