Posts filed under “Corporate Management”

Why Google Bought Nest Labs

>

 

My Sunday Washington Post Business Section column is out. This morning, we look at Google’s acquisition of Nest Labs.

My perspective is that Google is trying to avoid being disrupted or marginalized the way so many other tech companies have been.

Here’s an excerpt from the column:

“Perhaps the granddaddy of cautionary technology tales is Eastman Kodak. The film and camera manufacturer was so dominant that, according to a case study by Harvard Business School, in 1976 “Kodak controlled 90 percent of the film market and 85 percent of camera sales in the United States.” Astoundingly, it was Kodak itself that developed the digital camera in 1975. Fearing that digital photography would cannibalize its photographic film business, the company buried its own invention. That helped sales for the next decade or two, but, eventually, digital cameras came to dominate photography. Rather than own the future, they clung to the market share of the past. It should surprise no one that Kodak eventually filed for Chapter 11 bankruptcy protection.

None of this has been lost on the founders of Google, with their dominant position in search. Their acquisitions and research and development actions suggest that they are cognizant of how easy it is for a company to lose its grip on its primary market. This is especially true for dominant firms that became complacent — like Kodak, Microsoft and BlackBerry did.”

If we look at the 10 largest Google acquisitions, half are directly related to their core advertising, and none stands out as an obvious dog.

G Acq

 

The full article is here

 

Source:
Defense! Why Google’s Nest Labs acquisition is a smart move
Barry Ritholtz
Washington Post, January 26 2014  
http://www.washingtonpost.com/business/with-next-labs-acquisition-google-makes-a-savvy-move-aimed-at-the-future/2014/01/24/50c447f2-82d5-11e3-9dd4-e7278db80d86_story.html

Category: Corporate Management, M&A, Technology

Happy 100th Birthday, Mother Merrill. We Miss You

click for bigger graphic Source: Bank America     Merrill Lynch Pierce Fenner & Smith turns 100 today. At least, she would have been, if she was a standalone entity, and not a government rescued TBTF entity, forced into a shot-gun wedding with Bank of America. I have a warm place in my heart for…Read More

Category: Bailouts, Corporate Management, Digital Media, Investing, M&A

Rethinking Customer Satisfaction

A study by Bloomberg Businessweek indicates that customer satisfaction might actually be bad for business.

The Colbert Report
Get More: Colbert Report Full Episodes,Video Archive

Colbert 03:00

Category: Corporate Management, Humor, Video

The Ballmer Years

The not so terrific reign of error of Microsoft under Steve Ballmer: Source: WSJ

Category: Corporate Management, Digital Media, Technology

US Bank Fines = $95 Billion Dollars

In less than 5 years, these 5 banks have amassed nearly $100 Billion dollars in fines n 81 settlements:     click for ginormous graphic Source: Economist via Washington Post  

Category: Bailouts, Corporate Management, Really, really bad calls, Regulation

JPMorgan: Fish Rot from the Head

JPMorgan: Fish Rot from the Head William K. Black New Economic Perspectives October 23, 2013     The New York Times’ spin of the tentative settlement of JPMorgan’s latest myriad felonies begins early and runs throughout the article.  JPMorgan and Attorney General Eric Holder have reached a common meme on their settlement:  the Department of…Read More

Category: Bailouts, Corporate Management, Legal, Really, really bad calls

The Buffetts (3 Generations) Discuss Charity & Succession

Oct. 22 (Bloomberg) — Berkshire Hathaway chairman/CEO Warren Buffett, board member Howard G. Buffett and Howard W. Buffett, executive director at Howard G. Buffett Foundation, talk with Betty Liu about their book “40 Chances,” their philanthropic endeavors, succession at Berkshire Hathaway and Warren Buffett’s love of the TV show “Breaking Bad.” They speak on Bloomberg Television’s “In The Loop.”

Read More

Category: Corporate Management, Video

Apple’s Stock Price Post New Product Announcements

Daring Fireball points out that following most new Apple product introductions, the stock price tends to fall: Here are the Steve Jobs product announcement stock action: • 23 October 2001, introduction of original iPod: AAPL fell about 5 percent. • 7 January 2002, Macworld Expo keynote: AAPL fell 4 percent. • 7 January 2003, Macworld…Read More

Category: Corporate Management, Investing, R&D, Technology

The Rise & Fall of Blackberry

Click for ginormous graphic Source: NYT

Category: Corporate Management, Cycles, Digital Media, Technology

Top 10 Bank Fines (Post 2008-09 Crisis)

Fines here, fines there, fines everywhere! The Wall Street Journal discusses the proposed $11 billion dollar JPM fine, but  buries the good stuff in this morning’s article on Jamie Dimon (This Generation’s Greatest Banker! ®) We have been tracking JPM’s fines, but if you want an industry overview, try this collection: Here is a quick…Read More

Category: Bailouts, Corporate Management, Really, really bad calls, Regulation