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Reply to this post you agree or disagree Google buyout of Motorola: Was it a good business decision? I don't think this was a good
Reply to this post you agree or disagree
Google buyout of Motorola: Was it a good business decision?
I don't think this was a good economic decision for Google because Google is a Software Company and Mortal was a hardware company. Therefore Google was trying to vertically integrate into the smartphone industry.Vertical integration is the combination in one company of two or more stages of production normally operated by separate companies. With Google taking on Motorola it was going to require significant capital investment by the organization. Google didn't have enough resources available to set up or purchase factories and also maintain a profit margin to remain consistent. With other big brands in the market such as Apple and Samsung, it would be a challenge.With vertical integration, Google could confuse their consumers on exactly what they selling. If people did not like Motorola product's before they now will have to convince the consumers that they are better than what they previously knew.With Google not having much control over the hardware industry they wanted to own the patents of the Android and Motorola industry to integrate into one big powerhouse.
References:
https://connectusfund.org/17-major-advantages-and-disadvantages-of-vertical-integration
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