The Google Motorola Acquisition On August 15, Google declared its intentions on procuring Motorola Mobility (MMI), centered in Libertyville, Illinois, for $40 per share or a collective sum of about $12.5 billion. The business deal gave a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was approved unanimously by the boards of directors of both companies. The deal resulted from a strenuous effort from Google to obtain regulatory approvals without conditions. It was a Vertical Merger (where companies at different places in a chain of products join together). The Hardware Client (Motorola) was acquired by the Software Client (Google). Google's open-sourced operating system, Android, …show more content…
The deal then received approval authorities in China and it was completed on 22nd of May, 2012. Google in this regard released a statement clearly telling that Motorola would still be run as an independent company. The commotion lead to investors and brand patriots alike, wondering how an internet giant like Google can integrate with and run a hardware company that had been profusely bleeding cash and had begun the downward spiral over the last few quarters. A quick answer was that Google could now manufacture hardware in large quantities. Motorola was once a major mobile manufacturer. Looking at the OEM market share data, Motorola, at the time, held a market share of 13.7%. This had plummeted from the previous year's share of 20%. Motorola developed and introduced the 'flip phone' with the MicroTAC and the 'clam phone' with the StarTAC in the mid-90s. The RAZR model gave it unprecedented success selling over a 110 million units, but with the emergence of other players, and grossly over relying on the Razr and its derivatives, it lost significant market share in the
The Lester Electronics Scenario has potential for several issues and opportunities. The first issue is that Shang-Wa has been approached with a hostile takeover bid. TEC showed its interest in acquiring Shang-Wa to expand their global growth opportunities. Shang-Wa knows that due to the size of the TEC as a company, this could turn in to a hostile takeover is they do not cooperate. As part of their defensive technique, Shang-Wa has approached Lester Electronics with the idea that a partnership would benefit both companies. Lester Electronics has done the research and found that a merger would be more beneficial to the company. This could cause some possible problems with Shang-Wa because their proposal was for a partnership, not a merger. John Lin, Shang-Wa's CEO may not be ready to give up his company just yet, even though he has been thinking of retiring soon. As part of a merge with an internationally based company, Lester Electronics will also have to do the research to find out how to best deal with operational exposures, such as exchange rate fluctuations.
I have researched the Motorola Incorporation and with the information have created a strategic audit for them. Motorola is the leader in global communications. They are currently revolutionizing broadband. The companies headquarter is in Schaumberg, Illinois with 320 other facilities in 73 countries. Motorola's CEO and Chairman is Edward J. Zander and employs more than 9,000 people worldwide and had sales of $42.9 billion in 2006. Motorola today has three business segments: 1) Mobile devices 2) Home and networks Mobility and 3) Enterprise Mobility solutions. This company has come a long way since its first product which was the battery eliminator in 1928 and they have also been recognized for their dedication to ethical business practices. Their products over the years have grown and changed along with their drive for excellence which has become stronger than ever. What more can this company do? The strategic audit I have prepared might shed some light on some ideas for them.
Google Inc. was able to generate positive cash flow from operations consistently. In 2012, it generated $16,619 million which increased to $18,659 million in 2013 and $22,376 million in 2014. This upward trend shows that Google Inc. is able to make sufficient cash from its operations to pay its obligations.
Google success can be seen in its staggering revenue figures. Google announced $55 billion in total revenue for 2013, which is 189th on Forbes 500 list, the majority coming from advertising (Google Investor, 2014). On top of this their profits exceeded $15 billion. Despite a narrow revenue stream, Google’s broad product range is also a measure of their success. Part of the strategic developed of the company has been through diversification. This has been achieved through commitment to a policy of bold and aggressive acquisitions, currently they hold over 100 products in their portfolio. This gives them broad awareness, vast economies of scale and sustainability across their product-lifecycle and Boston matrix (Hooley et al 2008).
Competitive Analysis of Motorola Company Background Motorola, Inc. is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. Motorola was founded in 1928 by Paul and Joseph Galvin under the name Galvin Manufacturing Corporation. The company started out by producing battery eliminators that allowed battery operated radios to run on household current. The first Motorola brand car radio was launched in the 1930aê¡?s. In 1947 the company changed its name and became Motorola, Inc.
The last thing that I read is that the merger is expected to generate $500 million in annualized costs. Two big-name companies, have decided to join forces on the mobile front in hopes of gaining a small piece of the mobile market. Lots of investors are hoping that this merger will give the big guy a little competition and their competition is Apple. Once considered powerhouses in other markets. Fujitsu and Toshiba are getting ready to join forces.
Strength: Google is the leading company in search engine having more than 65 % of the market shares, making it extremely difficult for the competition to imitate or come close. Its capacity to engender user traffic produces a massive amount of information through the number of hits it gets, estimate per month of 100 billion, which provides information on consumers’ shopping habits, and it’s utilize to improve the tools used by users, provide what consumers need, and attract more users. In addition, it attracts recognize brands which brings the biggest revenue to the company, more that 90%, due to the popularity Google has. Google is also getting stronger with the introduction of Android as well as other mobile technologies that will help in the present and future increase of revenue from other venues. Moreover, its acquisition abilities, with a cash in excess estimate at 64 billion in 2015, gives Google the opportunity to buy more companies and increase its power and dominant in the market share as well as give them the advantage of continue
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
Google’s Stock Price was around $ 110, but it is now traded at around $500. What made this big difference? In order to understand why google’s stock price increased to reach this level we have to understand what makes it special from the way they treat their employees.
Back in the late 70s and early 80s phones did not have cameras or web browsing or anything like that. They were basically just plastic boxes with wiring inside unlike today’s smartphones with glass touchscreens HD camcorders, video calling, and web capability, but if not for the first cellphone we would not have come so far since then. In 1973 the founder of Motorola Martin Cooper made it easier to call and chat with people and made the worlds first mobile phone. However, it was not approved by the FCC until September 21, 1983, when it became the first commercial portable cellphone. At a cost of $3,995 people thought of this as the future of communication and everyone wanted to get their hands on one though looking back on it now they might have been a little over priced compared to todays modern cellphone prices. We have come a long way since the 70s phones have become more compacted easier to take on the go and today mankind is still coming up with ever newer ways to stay close to ...
The next smartphone to be invented was the Nokia 9110 Communicator in 1998. This phone resembles the look of today's smartphones. The flip-out keyboard sets an example for present-day phones, like smartphones that utilize sliding keyboards.... ... middle of paper ...
No company that falls behind the competition is guilty of standing completely still. But sometimes our efforts fail because of the level of commitment to change. – Tom Kelley and David Kelley Organizational Issue BlackBerry, formerly known as Research in Motion (RIM), was a market leader and innovator for smartphone products. The business and government sectors found the BlackBerry device particularly useful because of its email capabilities, superior security system, and convenient keyboard. As the smartphone industry began to shift its focus towards the average, everyday customer, competition increased, and BlackBerry’s first-mover advantage began to decline.
Interests: It wants Google to provide its citizens and companies with the access to the very best technology, eventually, an achievement of technological parity with the US. Also, China knows the nation’s economy will be improved by internet access and use.
The smart phone was innovated heavily towards the late 2000’s and a lot of the newer features on them made their value skyrocket. There was a time when phones could only make calls, and even then the service was not that reliable. Eventually, companies start innovating with better resources of technology and start giving consumers more of a bargain for their dollars. The early 2000’s come around (2000-2004) and cell phones start to innovate text messaging, and some basis for PDA computing. The PDA industry did not last long because of the quick innovation ...
Google is a good work place and provides numerous work opportunities for people in diverse fields. Google has invested in several areas including advertisements, operating systems, sales, search, and hardware products. A significant proportion of Google’s income comes from making online advertisement. The company was founded by Larry Page and Sergey Brin while they were PhD at Stanford University. The two founders together own almost 16% of the company’s shares. It was primarily incorporated as a private company in the year 1998 before the IPO in the year 2004. The mission statement of the company was to organize the world’s information by making it globally accessible and useful. The rapid growth environment characterized by numerous competitive ventures has led the company into adopting a series of strategies involving the chain of products, acquisitions and partnership s that transcend the core function s of the company or the search engine. The company has product offerings in the likes