Competitive Advantage Between Google & Motorola

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Executive Summary On 15 August 2011, Google Inc. (“Google”) and Motorola Mobility Holding, Inc. (“Motorola Mobility”), announced a definitive agreement for Google to acquire Motorola Mobility. The transaction was unanimously approved by the boards of directors of both companies and is subject to closing conditions, including various regulatory approvals, and the approval of Motorola Mobility’s shareholders. This report is going to analyze and discuss the core competitive advantages of Google and Motorola Mobility and key impacts of the deal. We will also recommend any potential synergy effects and key issues for future corporate strategies. Introduction Started with search engine development in 1996, Google has developed into a public listed company in the US, offers various products and services. With profits primarily generated from advertising with its AdWords programs, Google is providing Web services including Search, Maps, Youtube, Groups and Chrome; cloud computing productivity tools including Gmail, Calendar, Docs and Translate; mobile operating system including Android and mobile phones labeled as Nexus.. Motorola Mobility, also listed in the US, was spin-off from Motorola, Inc. in January 2011. It is comprised of two business units, the mobile devices business which provides smart phone devices and the home business which provides digital set-top boxes and end-to-end video solutions. It is a business partner of Google, who supports the Android OS as being the launcher of the world’s first dual core CPU and 1 GB Ram Android mobile and the world’s first Android 3.0 system tablet. [Motorola is the first one to launch dual core together with 1 GB Ram, but not separately.] Google’s acquisition of Motorola Mobility should create synergy effects to both parties and remapping the industries, which will be analyzed herewith.

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