Google has a competitive edge in search because of it's data. All their other so-called successes are based directly off that (either in user share or because they have the big bucks to bankroll it).
Take a look at other tech companies, they've created fortunes based on almost nothing
* apple, consumer electronics that anyone could do
* amazon, selling stuff online that anyone could do
* oracle, selling databases when their competition includes ibm and even free software
Youtube should have been itunes, amazon instant, netflix, hulu all rolled in one. But they're not, because they don't actually know how to do business - one hit wonder.
Another example, google, until recently, had no lobbyists - why on earth would you do that? (when you have enough piles of cash to buy ountries). Investors should be filing lawsuits for this reason alone.
Another example of business cluelessness, they're not flexing their patent muscles.
Android ubiquity - linux is ubiquitous too, far more so - hint, it's FREE. Not very hard to give away free stuff.