By STEVE LOHR The New York Times November 6, 2005
Wal-Mart, the nation's largest retailer, strikes fear into the hearts of its competitors and suppliers. Makers of goods from diapers to DVD's must cater to its whims. But there is one company that even Wal-Mart eyes warily these days: Google, a seven-year-old business in a seemingly distant industry.
"We watch Google very closely at Wal-Mart," said Jim Breyer, a member of Wal-Mart's board.
In Google, Wal-Mart sees both a technology pioneer and the seed of a threat, said Mr. Breyer, who is also a partner in a venture capital firm. The worry is that by making information available everywhere, Google might soon be able to tell Wal-Mart shoppers if better bargains are available nearby.
Wal-Mart is scarcely alone in its concern. As Google increasingly becomes the starting point for finding information and buying products and services, companies that even a year ago did not see themselves as competing with Google are beginning to view the company with some angst - mixed with admiration.
Google's recent moves have stirred concern in industries from book publishing to telecommunications. Businesses already feeling the Google effect include advertising, software and the news media. Apart from retailing, Google's disruptive presence may soon be felt in real estate and auto sales.
Google, the reigning giant of Web search, could extend its economic reach in the next few years as more people get high-speed Internet service and cellphones become full-fledged search tools, according to analysts. And ever-smarter software, they say, will cull and organize larger and larger digital storehouses of news, images, real estate listings and traffic reports, delivering results that are more like the advice of a trusted human expert.