While the article uses Google as its subject, the idea can be extended to almost any company. Not since J.K. Rockefeller has any prominent person or company truly practiced the art of vertical integration. Microsoft, for instance, has been unsuccessfully playing catch up with Google. The whole "Windows Live Mail", "MSN Soapbox", "Live Spaces" are nothing but microsoft's ill attempt at taking Google's crown. Instead of entering another market, a company should vertically innovate in services it already provides.
I believe that a lot of startups try to be everything to everybody; and in the process, lose focus. Finding a niche and sticking to it regardless of growth is better than entering markets that do not complement the company's core business. - Jawad Shuaib