Google, Inc.: Searching for New Avenues for Growth|IT and Systems|Case Study|Case Studies

Google, Inc.: Searching for New Avenues for Growth

            
 
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Case Details:

Case Code : ITSY068
Case Length : 20 Pages
Period : 2010-2011
Organization: Google Inc.
Pub Date : 2012
Teaching Note : Not Available
Industry : Information Technology
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"...Google is no longer in the business of sending users to the best sources of information on the Web. It now hopes to become a destination site itself for one vertical market after another, including news, shopping, travel, and now, local business reviews..." i

- Jeremy Stoppelman, CEO, Yelp , in September 2011.

In August 2011, Google, Inc. (Google), the undisputed leader in online search, took many by surprise when it announced that it was taking over Motorola Mobility Holdings Inc.ii, the mobile device manufacturer. The surprise was understandable, given the fact that Google, which had previously focused on web services and software, was getting into a brick-and-mortar business, where the margins were wafer thin, and which required skills that it did not possess. In fact, the only way that Google and Motorola were related was that both operated in the technology sphere. So could substantial synergies be derived from the deal, was the question on people's minds.

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

Also, with Google morphing into a complete mobile device manufacturer, other smart device makers that had previously worked with it to make the Android operating software a roaring success, would in all probability, take a relook at their alliance with it. Analysts wondered whether Google, which had previously achieved phenomenal growth without going anywhere near hardware, was actually making a mistake.

Background Note - Next Page>>


i] Yelp is a portal focused on providing user reviews of local businesses and services.
ii] Motorola Mobility Holdings Inc was one of the two companies into which the telecommunications company Motorola Inc. was split in January 2011. Besides mobile phones, it was a major player in the cable set-top boxes business. For the year ended December 31, 2010, it had net revenues of US$11.46 billion and US$86 million.

 

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