MOLI VIEW™

If there is a recipe for online success, it is this: Do one thing really well, strive continuously to improve, then add complementary services that leverage your offerings. Monetization results from selling advertising that targets market segments for each service.

That is, essentially, Google's strategy. They started with search, added e-mail, word processing, blogs, image applications, and other functionalities, then sold ads based on keywords and other determinants.

Google, however is not resting. Microsoft, having built its fortune on a strategy of acquisition rather than innovation, watches Google warily. They've tried to counter and outflank Google, most recently by buying a piece of Facebook — purely a defensive move. Bill Gates and crew know that Google is their main rival.

Now, Google is attempting to aggregate even more information — everything that's known, in fact. They want to build a user-created online encyclopedia.

Sounds like Wikipedia, right?

Not exactly — though that's how it's generally being reported.

It's more like Squidoo, a site masterminded by Seth Godin — who is taking the high road on this, saying that imitation is the sincerest form of flattery.

Regardless, let's see what Microsoft's next move is — and you know there'll be one.

Richard Pachter is the MOLI View's contributing editor for Business.

» Read Richard's blog