Early this morning, Google announced that the company has acquired Motorola Mobility for $12.5 billion, which is their largest acquisition yet. This move holds promise to strengthen Google’s competitive position in the software industry against other companies like Apple and Microsoft, which has been a position questioned in the past. Now, the company gain gives Google an upper hand on leveraging future business negotiations for the Android platform, as well as new opportunities for mobile patents and an expansion on their mobile hardware.
Over 17,000 new patents came along with the acquisition of Motorola Mobility, finally giving Google the boost it needs to rev up the Android platform. Liberated from the threat of future legal challenges the Android platform was bound to cross, Google now has paved their way for multiple opportunities in the mobile market. While Motorola will remain a separate business, the combination of these two companies and new patent portfolio gives Google the opportunity to couple the Android system with Motorola tablets and smartphones. Freeing the company from many potential legal attacks on patents, this is a huge competitive advantage, and ultimately was a means that Google saw they needed to preserve and develop for the Android ecosystem.
“The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences.” While major companies like Apple and Microsoft may now have to dig a bit deeper to go against this inevitable threat posed by Google’s acquisition of Motorola, consumers everywhere can look forward to original ideas and improvements on a system that has already proved to reliable.
All in all, what should Google’s major competitors keep in mind during the new era that is bound to heighten the magical world of Smartphone technology? Just remember it’s all about customer value, and Google has found over 17,000 new ways to create that value.