Google Acquisition of Android Case Study

Google Acquisition of Android Case Study

Circumstances that Resulted to Google Acquisition of Android

In 2005, Google acquired Android for an estimated $50. Prior to the acquisition, Android was not a well-known company in the market. The deal enabled Google to compete in the marked previously dominated by Microsoft with Apple’s iPhone and Windows Mobile. However, this deal was surrounded by various circumstances which pushed Google to quickly close it. According to (John, 2018), the market lacked a proper mobile platform, and this was Google’s main goal to acquire Android because it would open for a convenient platform to advertise. Also, this deal would expose Google to non-restrictive platform rules when advertising its products online. Also, Google feared the kind of mobile future that is being made by Apple; thus, Android was necessary to ensure that too much control is not bestowed on the iPhone platform.

Google and its Company Culture

Google, Inc. is an American based company which operates in the internet cloud computing and computer software industry. Founded in 1998, the company has managed to grow and command a global user base. The decision to acquire Android in 2005 was driven by the fact that Google’s culture matched with that of Android (Kumar, 2014). Founders of Google built it on the idea that the challenging nature of work should be fun. In this context, the culture of Google is unique and does not resemble any other company in corporate America. When it comes to daily experience, Google puts users first. Also, Google values its employees. Today, the culture of Google continues to evolve, and nurturing an atmosphere for innovation is the core focus for the company.

Reasons for Google’s Acquisition of Android

Google’s acquisition of Android was a massive bargain. The main reasons for the acquisition are:

  1. Diversification and greater market share: According to (Sylvain, 2019), the core objective of Android was to curb the kind of smartphone future Apple sought to introduce. Google acquired Android in order to diversify its operations into the mobile market. Today, all mobile products are powered by Google’s Android version. Thus, Google has a diversified market share into the mobile phones sector.
  2. Consumer and vendor consolidation: In the case of Google v. Android, Google was focused on consolidating the markets which Android had not yet explored(Lebedev, Peng, Xie, & Stevns, 2015). Since the mobile phone industry continues to attract new consumers, Google had forecasted this trend and wanted to launch a logical supply chain for future demands.

Positive and Negative effects of Acquisition

Positive effects of Acquisition

Market power: Acquisition provides companies the opportunity to explore diverse market places….Continue Reading….

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