It has been announced that Google acquires social media search service Aardvark for a fee of 50 million dollars. This reveals the actual strategy behind the newly introduced social media application Buzz. Google has its mind set on conquering some of the market share in the world of social media through strategical acquisitions which will help strenghten the core of the application.
As I am currently researching IT-giant Cisco and its competitors, I find this strategy awkwardly similar to Cisco’s strategy to quickly dominate a new market through acquisitions and strategic partnerships.
In fact, the elevator pitch given by a former Cisco CEO is this:
Continued investments in IT result in measurable productivity gains.
That is exactly what Google is doing right now regarding social media. Maybe I was a bit too quick to judge..