Tomahawk, WI 12/17/2013 (BasicsMedia) – Google Inc (NASDAQ:GOOG) is known as the world’s largest Internet search provider. The market values the company at $358.47 billion and it has about 334 million shares outstanding.

The company generates its revenue from display ads through Google Search, YouTube and several other Internet services which it offers. Of late the company has been making inroads into hardware business where it offers smartphones and tablets. It is also scheduled to launch a wearable computer next year.

By seeking to diversify, the company is doing what its investors require of it. Through diversification, Google Inc (NASDAQ:GOOG) hopes to increase its profit earnings and also spread risks. However, in doing this, it is also raffling feathers.

When GOOG entered smartphone and tablet business, it was seen as trying to destabilize Apple Inc. (NASDAQ:AAPL) and Samsung Electronics which are the leading manufacturers of smartphones and tablets.

Now Microsoft Corporation (NASDAQ:MSFT) is also finding itself a victim of Google Inc (NASDAQ:GOOG)’s expanding empire. The two companies are business rivals in most measures. The bitterest war that the two tech giants have fought is over employees. GOOG has often robbed Microsoft of some of its key engineers and sometimes disputes resulting from the same have ended up in courts.

And just this week, GOOG dipped its hands once again into Microsoft’s pool of talents and took away Blaise Aguera who is a key Microsoft engineer. The New York Times reported that Blaise left the software giant for a position at GOOG. Blaise played a key role in the creation of Bing. He joined Microsoft in 2006 when the software giant acquired his startup company Seadragon Software.

Microsoft has lamented the loss of its engineer as the company’s spokesperson wrote: “He was a great colleague and we wish him the best in his future endeavors.” It is not yet known whether that is the reaction that Microsoft will ever have over GOOG’s latest raid in its pool of talents. But if history is anything to go by, there could be some more battles ahead.

GOOG has announced a series of developments and new products and the company is in need of engineers to make these plans a reality. Given its strong financial position, GOOG is not limited on who it can hire to get things done on its side. The company can be seen boosting its talent pool through acquisition of startups as well as direct hiring from competing firms.

Investment in core products

Despite being the Internet search giant earning the highest revenue from display ads, Google Inc, (NASDAQ:GOOG) is facing competition which means that it has to put its money into use to stay ahead of the game.

The company is seeking to expand its ad revenue income by taking Internet to more people. This is why the company’s entry into smartphone business is aimed at driving down the cost of the devices so that more people can access the Internet. And by so doing, they feed its ad revenue column.

Google Inc, (NASDAQ:GOOG) reported revenue of $14.89 billion in Q3.13. This figure was up 5.6 percent compared to the same quarter of the previous year.

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