...Google announced on August 15, 2011 its acquisition of Motorola Mobility, the biggest acquisition this online search and software company has ever made. It is interesting enough that Google chose to perform a strategic alliance with Motorola Mobility. Motorola is a great American company with a rich history of innovation including the invention of the first cell phone. As a result of this acquisition the expected result is to utilize Motorola Mobility’s IT resources to help maintain that sustainable competitive advantage. With Motorola Mobility now being under Google, the company would benefit from the expertise of the existing Motorola engineers and employees, and would be able to more closely integrate their Android OS with hardware, allowing them to compete with Apple’s Iphone/IOs. While it’s true that with this $12.5 billion acquisition, Google intends to improve their sustainable competitive advantage by using IT Hardware from Motorola Mobility, I believe it is only a small part of their overall approach to be competitive. In the book Managing & Using Information Systems, the authors Pearlson & Saunders point out in chapter 2, Google’s main competitive advantage “Google’s search algorithm is a source of competitive advantage for the search company” (P.51). In order to keep a sustainable competitive advantage Google should continue to build on their strengths by introducing innovative products, continued releases of their Android OS, and seeking out strategic alliances...
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...Google’s Decision to sell Motorola mobility to Lenovo In the mid of 2012, precisely on August, the technology giants, Google has bought a Motorola Mobility LLC, an American telecommunication corporation for $12.5 billion. After one and a half year, Motorola Mobility LLC, which owned by Google has been sold again to Lenovo, which a Chinese company whom an expert in a computer manufacturing for only $2.91 billion. Most of people said that Google’s decision to sell Motorola Mobility is a fool. Google has several reasons why they sell Motorola Mobility to Lenovo. The first reason is Google only bought Motorola Mobility for its patents, not for manufacturing. Because, Motorola had a massive patent library that can be used defensively against Apple's patent attacks on Android licensees which makes the Android or Google’s customer worried. The second reason is Google can become a neutral company as an operating system broker for many vendors and make the money circulate faster than when with Motorola. Because, once Google bought Motorola, many big companies like Samsung and LG start to create their new operating system for mobile like Samsung’s Tizen. From these two reasons, Google’s decision to sell Motorola Mobility to Lenovo is a wise decision and profitable because when Google bought Motorola for $12.5 billion, the company has $3 billion in cash. And then, Google sells the home division and handset division for $2.5 billion and $3 billion, and spent around $2.5-3.5 billion...
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...SEPTEMBER 2014 DOI: 10.14807/ijmp.v5i3.166 CITATIONS READS 2 2,355 1 AUTHOR: Netra Pal Singh Management Development Institute Gurgaon 68 PUBLICATIONS 62 CITATIONS SEE PROFILE Available from: Netra Pal Singh Retrieved on: 12 February 2016 INDEPENDENT JOURNAL OF MANAGEMENT & PRODUCTION (IJM&P) http://www.ijmp.jor.br ISSN: 2236-269X v. 5, n. 3, June - September 2014. MICROSOFT ACQUIRED NOKIA IN UNIPOLAR OPERATING SYSTEM MARKET Netra Pal Singh Management Development Institute, India E-mail: knpsingh@mdi.ac.in Submission: 13/11/2013 Revision: 05/01/2014 Accept: 10/01/2014 ABSTRACT The recent big tickets include Microsoft acquiring part of Nokia for US$ 7.2 billion, Verizon buy 45% stake in Vodafone for US$130 billion, Google acquiring Motorola for 12.5 billion. These buyouts are analyzed and commented by experts of the industry. This research paper attempted to collate their view in the context of Microsoft and Nokia deal on six parameters. These parameters are (i) reasons for the downfall of the Nokia market share, (ii) general comments of the experts, (iii) similarities / dissimilarities of past and business models of the smartphone business, (iv) reasons for Microsoft to buy out Nokia, (vi) impact of buyout on Microsoft, Nokia, consumers and markets. In addition, paper discusses the existing theories of merger & acquisition in telecom sector in the past. Keyword: Smartphone, Microsoft, Nokia, HERE Maps, Galaxy, Lumia, Synergy Trap Hypothesis. [http://creativecommons...
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...Well Microsoft Corp and Google Inc's Motorola Mobility division had a recent lawsuit covering their intellectual property. In this review I will discuss the different types of and legal protections for intellectual property. Analyze the legal issues of e-business to include intellectual property, privacy, ethics, and security. Of many I find this one the most interesting. The trial ran from November 13 to November 20 and was about what rates Microsoft should pay the Motorola Mobility Division, for the its patented wireless technology. The agreement between them was that Microsoft alleges that Motorola promised to license its patents to Microsoft at a fair rate and that they did not feel the 4 billion a year Motorola wanted per year was not reasonable. Now because the trial involved “secret” intellectual property the judge cleared the courtroom everytime they spoke about these trade secrets. Then you must consider “the case between Microsoft and Motorola is one of many cases in which technology companies are concerned about confidential information being released to the public. Similar lawsuits involving Apple Inc, Samsung Electronics Co Ltd, Nokia and others have also requested the sealing of documents to protect trade secrets.” According to the article the judge needs to look at all of Motorola’s other deals to make sure the same kind of rate is being charged. If you are this it seems very fair. Although their contract is way to vague. They should have set such a huge...
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...Acquisition of Motorola Mobility by Lenovo Md Asifur Rahman Khan Executive Summary This report is on the Acquisition of Motorola Mobility by Lenovo. The main purpose was to know about the acquisition of Motorola mobility by Lenovo, Background of the acquisition, and consequences of the acquisition and the Financial and Human Resource Impact of Holder and Subsidiary Company. This report intends to show these above mentioned factors in Lenovo and Motorola Mobility Acquisition. Introduction Mergers And Acquisitions - M&A' A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. The main reasons of Merger or Acquisition are to join forces to strengthen market position, cut back cost, diversification or to share technologies, ideas, expertise for future growth of the companies Company Profile Lenovo is one of the world's leading personal technology companies, producing innovative PCs and mobile internet devices. A global Fortune 500 company, Lenovo is the world's largest PC vendor and fourth largest smartphone company. Lenovo is a US $47 billion personal technology company with more than 57,000 employees (including joint ventures) in more than 60 countries serving customers in more than 160 countries. Lenovo is a global company that is incorporated and headquartered in Hong Kong...
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...Business Analysis Part 1: Motorola Mobility As the mutual fund manager, we will be analyzing Motorola Mobility Inc. (MMI) to make a decision on whether or not to invest in the company. The following is a business analysis that will be taking place over the next couple of weeks to determine whether or not Motorola Mobility is worth investing in. A SWOT analysis for Motorola will help with the decision making. This analysis will also include the company’s internal and external stakeholders, a description of their needs and wants and how the Motorola Mobility is fulfilling them. If MMI is not fulfilling those needs this analysis will explain what the company needs to do to ensure they are. SWOT Analysis The following will give both an internal and external perspective of Motorola Mobility (MMI). A SWOT analysis for Motorola Mobility will allow us to understand and evaluate the strengths, weaknesses, the opportunities available and any threats that Motorola Mobility may face. Strengths Brand name is a strength of Motorola because of how long they have been around and the reliability of the product they put out. The brand name of Motorola is also attached to the brand Google Inc., after the Motorola Mobility and Google Inc.’s merger was officially approved in December, 2011. Products are a strong point of the Motorola name. From the StarTAC which was a very popular cell phone to the innovative smart phones in the Android smartphone family, they have continued to release...
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...discussion of the recent acquisition by Google, Inc., a publically traded U.S. multinational corporation, of Motorola Mobility, another multinational corporation. We will briefly describe in general terms, the acquisition of Motorola by Google, including analyzing the accounting requirements for such acquisition, and the various accounting challenges in preparing the financial statements for the consolidation of the subsidiaries on the date of acquisition. Furthermore, the paper will evaluate the amount of goodwill or other intangible assets derived from the transaction, including providing an in-depth explanation as to whether financial value was created by such acquisition. Additionally, other special issues will be analyzed, including the implications of changes in ownership, insolvency, liquidation, the reorganization resulting from such acquisition, and identification of the key accounting areas of difference for the acquisition reporting material to the profitability of the combined entity. Overall, this paper will conclude that Google’s acquisition of Motorola was significantly positive in terms of value within the wireless carrier market, and in terms of global goodwill. As reported by the Wall Street Journal, on August 16, 2011, the multinational company Google had completed a $12.5 Billion deal to acquire Motorola Mobility’s cellphone business (Efrati, 2011). In terms of strictly numbers, Google’s acquisition of Motorola, is not only the company’s largest in history...
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...Acquisition of Motorola Eric Brown Dr. Ross Contemporary Business February 13, 2014 Acquisition of Motorola Google’s acquisition of Motorola Google announced on August 15, 2011 that it will acquire Motorola Mobility Inc. (MMI), for a sum of $12.5 billion. This was a vertical form of merger as the supplier (software provider) acquired its hardware client (Motorola). Reasons for acquiring MMI * Google’s android operating system has been sued by companies like Microsoft and Apple for patent infringement. The company sought access to just MMI’s patents and hence ensured the independence of MMI as a separate company. * MMI is a big market player for mobile phones hardware. Its phones with Android platform proved to be huge success. Joining hands with Google will increase its ranking in the market. * MMI’s smartphone sales increased over the past year. Here, Google had a big opportunity to improve its share in the smartphone market. * MMI had developed and launched many breakthrough products over the years. MMI was the first company to introduce portable cellphones. Google hoped to benefit from technological innovations of MMI. * The two companies will be integrated to provide complete mobile phones and thus they will be better able to compete in the market with other top players. Impact of the deal The two companies together were expected to accelerate innovation and choice in mobile computing. Since Motorola is good at devices and Google is good at...
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...growth.” 1. What was Google really interested in? In 2012, almost two years ago, Google announced that it was purchasing Motorola Mobility for $12.5 billion. This resulted in a perplexing event. Google was acquiring a huge company, whose great patent portfolio may provide the company with valuable intellectual properties that would allow the company to compete more directly against Apple, Microsoft and other companies in the market. The objective was to protect the Android Operating System mainly from Apple’s Mac OS, Windows OS and other companies. Android was under an ongoing patent war with these companies. Motorola acquisition meant Google got 17,000 patents. Even though Google mainly bought Motorola Mobility for its patents, other reasons made the decision more consistent: the combination of these two companies will probably accelerate innovation and choice in mobile computing. This could yield to enhancements in phones, and at the same time decreases in prices. 2. What did Google really buy? Only the patents or the whole company? Although Google was only interested in its patents, Google bought the entire company. It is already operating Motorola as an independent entity, rather than absorbing it as a hardware arm of Google. 3. How much did Google pay for the operation? Motorola was drastically cutting back its production and selling products in far fewer countries. This bad situation made it easier the transaction. Google acquired Motorola Mobility for $12.5 billion...
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...today may require one to be involved with some sort of e-commerce. When conducting business one must be mindful of laws that pertain to online business as laws that protect intellectual property are more difficult to enforce. This proves true in a lawsuit filed by Motorola in 2012 against Apple Inc. accusing them of infringing on 6 different patents in 2010. The lawsuit between Motorola and Apple Inc. suggested that Apple stole intellectual property from Motorola, associated with a merger between Google and Motorola. “The merger agreement between Google and Motorola stipulates that Motorola not assert any new intellectual property actions without an agreement in writing by Google. That means Google must have expressly authorized Motorola to pursue this new case, filed in the U.S. District Court for the Southern District of Florida” (Gohring, 2013). Motorola suggested that Apple’s technology within the I-phone 4, and I cloud was illegally obtained from Motorola. The potential broken laws include infringement on intellectual property and Motorola had already owned patents on the technology being used by Apple Inc. The end ruling decided that Motorola did not illegally obtain intellectual property form Motorola and the Apple Inc. owned the patents on the technology currently being used in the I-phone and I-cloud services. New business ventures bring some risks, especially those involved with two separate companies merging. The technology industry is a rapidly growing...
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...External Analysis of Google Inc. External Environment Global Internet search is applicable to most cultures all over the world freeing Google from geographic dependence. In fact, the company now has 20 offices in the U.S. and international locations in over 30 countries working on research, sales, and marketing. Google offers a personalized search engine for more than 115 countries, and as language support improves, the company is likely to gain market share. As computers become more affordable, many people in economically disadvantaged countries are gaining access to the internet for the first time and Google would like to route them through its search and productivity products, like Gmail, Docs, and Sites. Google’s web applications are now bundled into the operating system on low-cost Linux-based computers. Demographics Google is well positioned in demographics because it has a relatively young user base. This means that it will be less affected as the Baby Boomers age in comparison to other companies that depend on the 50 to 60 year-old demographic group. Internet search is also not a gender-specific issue, and would not be hurt by changes in the ratio of female to males. The company will however benefit when some traditional and paternalistic societies begin using the internet more frequently. Technology Technology is obviously always improving and Google has taken specific measures to make sure it does not fall behind. Google can use commodity computer parts (cheap...
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...Brand Equity Study of Motorola | Table of Contents: 1. Research objective: 2 2. Research methodology: 2 3. About motorola mobility: 2 4. Global mobile phone market: 2 5. Consumer buying journey: 4 6. New moto series: 5 7. The trinity of brand strategy: 5 7.1 value propostion: 5 7.2 positioning: 6 7.3 brand identity: 7 8. Brand elements: 7 9. Verdict: 8 Brand Equity Study of Motorola “Motorola exists to invent, build and deliver the best mobile device on the planet, improving the lives of millions of people” ------------------------------------------------- -Vision Statement of Motorola 1. RESEARCH OBJECTIVE: This research project is carried out to evaluate the Brand Equity of Motorola mobility. 2. RESEARCH METHODOLOGY: The research was carried out in two stages. The first one is secondary research, followed by the in-depth interview with the Moto G users. 10 in-depth interviews were conducted where the questions are asked about the brand identity of the Moto G and about the customer perception. 3. ABOUT MOTOROLA MOBILITY: Motorola is an American telecommunication device manufacturer based at Chicago. They created the world’s first commercial portable cellular phones. On August 2011 Google acquired Motorola mobility division for US$12.5 billion. During 2003 to 2007, worldwide Motorola was one of the leading mobile phone manufacturer. But due to lack of product innovation, continuous improvement, Motorola lost its significant...
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...Introduction Google Incorporation is an American search engine company, found by Sergey Brin and Larry Page in 1998. It dominates the market by handling over 70 percent of worldwide online search requests (Hall, 2014). It aims to organize the world’s information and make it universally accessible and useful. Besides, it has an unofficial mission “Don’t Be Evil”, which refers to do good things for the world even though forgoing short term gains (Farfan, n.d.). It successfully expands its business from an online search company to a diverse company. Nowadays, it provides over 50 Internet services and products, such as Gmail, Google drive, Android, operating systems, applications for mobiles and computers. Moreover, when it took over Motorola Mobility in 2012, it began selling hardware, including smart phones and tablets, like Motor X, Nexus 7,etc. (Monhan, 2014). Recently, Google has sold Motorola to Lenovo at a much lower price, $2.91 billion than its purchase cost, $12.5 billion (Pressmen, 2014). Outwardly, it suffers enormous loss on disposal and loss of revenue. Worse still, its third quarter revenue growth rate from July to September in 2014 is far lower than analysts’ anticipation (Guynn, 2014). It may imply that there is stagnation for Google’s earnings. As a result, we will analyze Google based on CVP analysis, cost structure analysis, ratio analysis, and ethical issues and provide recommendations to maintain its sustainability. Financial analysis The quarter report shows...
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...MARKETING AND BRANDING When we talk about marketing the primary definition that comes to our mind is actively promoting a product or a service. A push tactic where it is pushing out a message to get sales results. But is it branding?? No. Branding is the process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. In simplified terms Brand encourages someone to buy a product and it directly supports whatever sales or marketing activities are in play. It is a personality that identifies a product. Name, term, sign, symbol. The WALT DISNEY: Disney has been successful at branding with their particular script font (originally created for Walt Disney’s “signature” logo), which it used in the logo for go.com. Primary Difference between marketing and branding can be figured as that Branding is strategic and marketing is tactical. Marketing may contribute to a brand but the brand is biger than any particular marketing effort. It is what sticks to one’s mind. Associated with a product , service , or organisation. Marketing and Branding for an organisation goes hand in hand. Every organisation has to sell, The way they sell might differ but ultimately every organisation is working towards constructing an image. The image of whatever they are trying to sell, be it...
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...December 5, 2011 To: Google Management Subject: Google Corporate Strategy Larry, this summarizes our analysis of Google’s current corporate strategy and outlines recommendations to guide future strategic decisions in Google’s incredibly volatile marketplace. Our goal is to help identify where Google’s environment is shifting and how Google can respond proactively to continue the market-beating growth and profitability of past years. Recommendations: 1. Google should continue with its acquisition strategy, utilizing the 70/20/10 plan, and internal operations with refined real options approach. 2. Use the Motorola Mobility acquisition to stage growth by entering the mobile hardware market. The integration of hardware and software capabilities opens a huge door for the company. While understanding the importance of advertising revenue to Google and the need to sustain it, the timing is right to diversify revenue streams and monetize the Android platform through the manufacture of integrated Google phones. This recommendation is important as a means of protecting Google from experiencing the preverbal paradox of success. Moving into mobile manufacturing also helps diversify Google’s revenue stream as Google finds itself losing advertising revenue to other websites, such as Facebook, Netflix, and others. Thus, beyond the importance of protecting Google’s right to make the Android operating system through the acquisition of 17,000 patents, a move which ultimately protects...
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