Thursday, November 06, 2008

Titans of American Capitalism


Steve Ballmer discussing the Google strategy for Android - "I don't really understand their strategy. Maybe somebody else does. If I went to my shareholder meeting, my analyst meeting, and said, 'hey, we've just launched a new product that has no revenue model!'...I'm not sure that my investors would take that very well. But that's kind of what Google's telling their investors about Android."

Sometimes Mr. Ballmer makes it too easy. The chart looks at Google's performance for the last five years versus Microsoft's. I wonder what Mr. Ballmer has been telling shareholders, investors and analysts about his strategy. Ballmer has not been able to grasp much in the last five years about open source software (which the Android platform is built on) or music players or even operating systems. In those five years, Ballmer's "leadership" has produced an 18% decline in value, while Google's strategy has produced a 215% increase. Does Ballmer think that corporate strategy is like golf - low score wins?

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