Google Case Investments

Google Case Investments The investment on the android systems did not profit Google Corporation. Google had publicly declared that its original objective was not driven by profit. Google makes 2.67 billion from android mobile, which is far less than its total revenue. Android applications reached 900 million by 2013 with 48 million applications signed each day. The increase did not influence the growth in revenue for Google.Advertising We will write a custom essay sample on Google Case: Investments specifically for you for only $16.05 $11/page Learn More The company has a lot of issues to tackle and cannot strategize on making a profit on Android mobile. Google makes its revenue from signing third-party applications daily. Android Smartphones is sold daily, and in 2013 Google projected a sale of 789,000 Android Smartphones. This statistic accounts for the financial benefits derived from android systems. Revenue 2008 2009 2010 2011 2012 Net income [millions] 4,226,858 6,520,448 8,505 9,737 10,737 Android users [millions] 7 200 484 700 The acquisition of Motorola was a huge loss for Google. Google acquired Motorola because of its patent rights. Google believed that the market strategy would give the organization a competitive advantage in the global market. It turned out to be a big failure. After trading $13 billion in the investment, Google started a restructure program that made it sell most of its stock in Motorola. This move did not pay well for Google Corporation. With the reorganization in progress, Google sold major departments in Motorola. Operations unit was sold for $75million, while the home outfit was sold for $2.35 billion. Google sacked 5000 workers in Motorola corporations, a move condemned by major market analyst. Google Corporation relies on Motorola’s patent license to create more revenues. The acquisition did not achieve its objective because the estimates revealed a near loss in the initial revenue. The sales of major depa rtments did not sum the investment capital for Motorola. Open source software means the user-ability to run the program for any task. The open source approach can be categorized in four ways. The free use of the application The free knowledge of study. Redistribution and copyrights. The freedom to modify the software for other uses. This means the source codes are available for any user. Thus, the advantage of the open source approach includes:Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is stable: Modification of software keeps the manufactures in the business. The open source approach is stable without frequent modifications. The user decides if he or she will update the system or software to meet a specific task. Thus, each update is a choice for the user. The advantage limits the cost of buying update versions of the software. The consumer is tempted to accept modific ation without a need. This situation is reduced with the open source approach. Cost: The cost of use is low and its users are not affected by purchase charges. The need for documenting the number of copies and ownership is avoided thus, reducing the cost of the software. Flexible: Another advantage of the open source approach is in its usage. While other software manufactures emphasize the use of the software for different systems, open source software permits its use with different products. The software is not limited to its product and can be associated with ease. This advantage provides benefits to the users of open source software. End-user support: Open source approach provides the user with training support. Unlike other software providers, open source satisfy the users curiosity where the program is incompatible. Some software providers release free versions of their software and generate high revenue when users apply for support. This trend is reduced with an open source ap proach. Although it is difficult to put the blame on anyone in the open source approach, the free support reduces the problems encountered. Reliable: Open source approach reduces the defects encountered. Most users complain of different defects with their applications, and this takes time to fix. Open source bugs can be fixed by any developer in minutes because the source code is available. This enables a developer to work on a particular bug and save time.Advertising We will write a custom essay sample on Google Case: Investments specifically for you for only $16.05 $11/page Learn More Accountable: Open source software can be verified during its usage. It is difficult to verify the claims of quality on closed-source applications, but this is different with open source models. The availability of its source code provides the confidence in the manufacturer’s claim. The claims can be audited by any developer or user with technical information. The net sales rose by 7.6% and the estimated projections provided a strong user support. The partnership increased the avenues of profit for Google Corporation. Apple terminated the partnership with Google maps and introduced its applications. The replacement is not user-friendly, thus, reducing its usage. Google will capitalize on this defect to reconsider its partnership with other third-party manufacturers. This strategy will promote its use and increase Google’s revenue. The project will increase the revenue projection by 18.9%. Google can harness its services with Motorola mobility. This will improve services rendered. The increase in the production of Motorola Smartphones will increase Google’s strength in connecting people. Google can create technologies that will displace similar competitors. Motorola Corporation is a positive platform to test Google’s strength.