A New York Times piece published over the weekend reviewed the strategies employed by massive tech companies like Apple and Google when they want to acquire smaller companies — and there’s reason for both PR and the financial industries to be concerned.
It seems that the primary issue some executives consider when determining whether to buy certain other businesses is not their potential to make money in the short-term (or even the mid-term): it’s whether consumers will really use the products they create in everyday life.
Hence what they call “the toothbrush test”: how often will the average person use this company’s product? Will they use it a few times and get tired of it, or will it be a consistent presence in their lives?
The implication: an increasing number of tech execs think they can make these decisions on their own.