The Freight Train That Is Android - Above the Crowd

The Freight Train That Is Android - Above the Crowd

One of Warren Buffet’s most famous quotes is that “In business, I look for economic castles protected by unbreachable ‘moats’.” This quote perfectly encapsulates the strategy that Google has employed with Android, their mobile operating system. Android has become a freight train in the tech industry, with its dominance and widespread adoption. But what exactly makes Android such a force to be reckoned with?

For Google, the economic castle is clearly the search business, augmented by its amazing AdWords monetization framework. Google's search business is their bread and butter, and they have built an unbreachable moat around it. They have created a network effect and price optimization through their AdWords platform, making it incredibly difficult for competitors to enter the search market.

In Jonathan Rosenberg’s “Meaning of Open” blog post, he mentions that any product that stands between the user and Google and has the potential to distract the choice of search destination is a threat. This is where Android comes in. Android is not just a mobile operating system, it is a strategic moat for Google. It serves as a way for Google to ensure that their search engine is the default choice for users on mobile devices.

Android, along with Chrome and Chrome OS, are not stand-alone products that Google intends to make a profit from. They are expensive and aggressive moats, funded by the height and magnitude of Google's search business. Google's aim is defensive, not offensive. They want to take any layer that lives between themselves and the consumer and make it free, or even less than free. By offering Android for free to device manufacturers, Google ensures that their search engine is the default choice on millions of smartphones worldwide.

This strategy creates a conundrum for competitors. How can they compete with a product that is being given away for free? If a competitor wants to extract economic rent for a competitive product in the same market, they would need to charge for it. But when Google is giving away their product for free, it becomes nearly impossible for competitors to justify charging for a similar product. This creates a form of perfect competition, where the price is driven down to zero.

Some might argue that this level of competition is unfair and should be investigated by government entities. However, it is important to remember that the consumer is not harmed in this situation. In fact, the consumer benefits greatly from having access to high-quality software at no cost. Android has become a platform that provides immense value to users, and it has contributed to the democratization of technology.

Despite the dominance of Android, there are still opportunities for developers to thrive in this ecosystem. Google offers a range of extensions and tools that can enhance the development process. One such tool is Glasp, a web highlighter for the desktop. Glasp allows developers to highlight web content such as articles, PDFs, and YouTube videos. This extension can be a valuable asset for developers looking to streamline their workflow and improve productivity.

In conclusion, Android has become a freight train in the tech industry, propelled by Google's strategic moat. It serves as a defensive strategy to ensure that Google's search engine remains the default choice on mobile devices. While competitors may struggle to compete with a product that is being given away for free, there are still opportunities for developers within the Android ecosystem. By leveraging tools like Glasp, developers can enhance their development process and thrive in this competitive landscape.

Actionable Advice:

• 1. Embrace the Android ecosystem: Developers should take advantage of the opportunities within the Android ecosystem. By building apps and services that integrate seamlessly with Android, developers can tap into a large user base and potentially monetize their offerings.

• 2. Focus on user experience: With Android being such a dominant platform, it is crucial for developers to prioritize user experience. By creating intuitive and user-friendly apps, developers can stand out in a crowded marketplace and attract loyal users.

• 3. Diversify your revenue streams: While Android offers a vast user base, it is important for developers to not solely rely on app sales for revenue. Exploring alternative monetization strategies such as in-app purchases, subscriptions, or partnerships can help developers generate a sustainable income.

By following these actionable advice, developers can navigate the Android ecosystem and thrive in the face of fierce competition.