In the IT environment, it is increasingly believed that the Internet start-ups do not have any future. A few decades ago it was possible to create a world computer without leaving the garage or a hostel room. So Apple and Microsoft appeared in the ‘70s, AOL in the ‘80s, Amazon, Yahoo and Google in the ‘90s, and Facebook in 2004.
So, this social network seems to be the last really great success of recent times. Other start-ups of the last ten years are far from the category of giants. Airbnb is estimated at $ 31 billion, and this is only 7% of the cost of Facebook.
Thus, techno giants control an increasingly large area of the Internet and the market, limiting young companies the opportunity to attract a large audience. Online casinos attract people with Virgin Casino promotional code.
Understanding the Work Environment Today
These days, small projects are absorbed by large companies. In general, everything is logical: any sensible digital giant seeks to buy up promising developments.
Today there are many platforms designed to give a chance to break through new ideas. But the competition in the field of technology is bigger than ever. Large digital corporations buy out any promising developments and often simply preserve them until better times when they are ready to provide them in the form of their own innovations.
Google and Amazon can be compared to the pioneers of America’s shores. They have already managed to occupy all profitable directions like search, social networks and online stores. But this is not the only reason – the main thing is still the aggressive seizure of new markets and the absorption of possible competitors. During its existence, Google acquired 203 companies, Apple – 82, Microsoft – 185. Facebook is adopting this strategy well.
The Challenge – Managing Effectively
Management of large tech companies constantly analyzes possible risks in connection with developing technologies. So, in due time Facebook had to reconsider the company’s policy because of the appearance of smartphones.
A browser-oriented site had a chance to sink into oblivion. But Mark Zuckerberg convinced the engineers to make the transition to the mobile interface the company’s first priority. And then Facebook dived headlong into mergers and acquisitions, buying up all the promising companies on its way.
The Major Acquisitions and How It Affected the Diversity of Tech Companies
So, in 2012 the company bought Instagram for a fantastic $1 billion, although at that time the service was just beginning to develop. In 2014, Facebook paid $ 19 billion for WhatsApp.
Loud deals were made by Google as well. In 2005, the company managed to buy Android software from an unknown programmer, and in 2006 – YouTube for $ 1.65 billion. All these companies could exist on the market independently, but they merged into the digital empires. Otherwise, online monsters could easily cut off their oxygen. In all these acquisitions, a major part of the workforce was taken in by the parent company.
So, in 2013, Zuckerberg offered $ 3 billion for Snapchat. However, the company refused the deal. As a result, Instagram added “history” and funny filters to its interface, which reduced the popularity of Snapchat and, consequently, the company’s value.