If I were CEO of Google
Today I saw a Forbes.com piece titled “If I were CEO of Google: A 4-step action plan to Dominate and Transform Retail”
I believe the plan although valid, is unnecessarily complex.
I hereby present a much simpler alternative Alphabet (or FB, or TSLA, or BABA, or any “Tech Titan”/company with an iconic founder for that matter) could use to dominate US retail.
Step 1:
Acquire/Merge Walmart.
Step 2:
Instantly become a 2–3 trillion dollar company (based on Amazon’s current price to sales multiple)
Step 3:
Watch competing retailers market capitalization fall by around 30–60% on news of the acquisition and use this discount to acquire them as well.
Step 4:
See their revenues reward your stock with a 4–5x price to sales multiple as opposed to 0.2x when they were independent just moments ago.
Step 5:
Repeat in other industries as needed.
Bonus:
Be on the lookout for companies announcing they’ll cut on buybacks and dividends in order to better compete, their stocks will fall by at another 10–15%.
Now, my plan for action might be one full step longer but I do believe this plan to be easier to execute and it could lead to creating the first 10–20 trillion dollar company in history much faster.
Finance, man. ¯\_(ツ)_/¯
