Soundview Executive Book Summaries

Google Exploits the Chaos

Monday’s breaking news was certainly the acquisition of Motorola Mobility by Google. When a juggernaut like Google; with search engine dominance, Android used by over 39 handset makers, a massive video-sharing site in YouTube, their new social media site Google+ at over 10 million in beta, and the controversial Google Books project; picks up a major phone/hardware maker, everyone better pay attention. 

 What are the ramifications of this acquisition? They’re many and diverse, and some of the ripples won’t be seen for years, but here are a few to consider:

  • Although Google is promising to keep Android open to its partners, certainly Motorola will benefit from being on the inside track with software development for its devices.
  • Apple and Microsoft have been in an uneasy partnership of late, buying up patents to keep them away from Google. With Motorola, Google picks up over 17,000 patents and instantly strengthens its position substantially. 
  • What about that much-desired place in your living room? Microsoft tried to get there unsuccessfully, and Apple is gaining ground. But with Motorola, Google gets the major manufacturer of set-top boxes used by cable companies, and the MEDIOS system.
  • And let’s not forget another great market – government. Before Motorola Solutions split from Motorola Mobility, they had a strong foothold on government contracts. Look to Motorola to help Google work its way into this lucrative marketplace. 
  • But of greatest interest to our readers is the content play. First they acquired YouTube, and then they launched Google Books. What’s next? Movie and TV production? Online newspapers? Book publishing? As content providers know, devices have no value without content. So it’s only a matter of time before Google moves to control the water, not just the hose. 

 Our summary of Exploiting Chaos by Jeremy Gutsche speaks directly to what is happening with Google, as he argues that periods of uncertainty actually fuel opportunity, reshuffle the deck and change the rules of the game. Google has certainly done that!



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