Chrome: Bomb or Noise?

Last week Google announced they will compete with Apple and Microsoft by releasing their own OS, Chrome.  Many congratulated Google on their "disruptive innovation."  But is it?

Clayton Christensen of Innosight coined the term "disruptive innovation" to describe an entrant that transforms what exists or create what didn't through simplicity, convenience, affordability, and accessibility.

Google's planned foothold in the netbook market fits the three characteristics common to high-potential disruptors:

1.  Google plans to start away from the market's mainstream.
2.  Chrome will intentionally sacrifice raw performance to give customers something simpler, more accessible, and more affordable.
3.  Google's business model is built around getting people on the Web and increase exposure to Google-powered advertisements - not selling its OS.

However, despite the hype about Google's innovation prowess, the company hasn't proven that it can build sustainable new growth businesses. More than 95% of its revenues come from its core search advertising model. Google is trying to fix this problem with a more disciplined approach to innovation. Chrome will be a crucial test of this approach.  There is also every reason to expect that Microsoft will fight fiercely for the netbook market.  Ideally, they would pay no attention and focus on more attractive opportunities.

So - will Chrome be disruptive?

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Brian Swann
VCU Brandcenter / Creative Brand Management / 804-690-7048
www.brandcenter.vcu.edu / swannbr@gmail.com