Docstoc

google

Document Sample
google Powered By Docstoc
					Google’s Disruptive Strategy:


   A Less Than Free Business
       Article by Bill Gurley
History
   Google started in 1996 as research
    project
   Had their IPO on August 19th 2004,
    giving them a market cap of 23 billion
   Currently worth 170 Billion
   The article Google Redefines
    Disruption: The “Less Than Free
    Business Model”
   Discusses Google’s Android OS
   In particular how this changes the
    Smartphone market, and potentially the
    home computer market
Android
   In Google's words, it's "the first truly
    open and comprehensive platform for
    mobile devices.
   Based on Linux
   The OS it self is pretty limited, the
    Google Apps provided with it offer a
    much better user experience
Android (cont.)
   One of the team leads says “Android is not a
    single piece of hardware; it's a complete, end-
    to-end software platform that can be adapted
    to work on any number of hardware
    configurations”
   Meaning its light and easy to use version of
    Linux which can be used on a number of
    devices
   Already found on other devices such as
    netbooks and PMPs
The GPS Software
   On Oct.28/2009 Google announced a
    free turn-by-turn GPS application for
    Android
   For reference Tom Tom’s GPS app for
    the Iphone is $100
   Upon announcement Garmin’s share
    price fell 16% and Tom Tom’s fell 21%
GPS (cont.)
   For developers, this means free access
    to a rich GPS platform
What this Means in the Market
   This poses a problem for RIM and
    Apple
   In the opinion of some the Andorid
    hardware from HTC, Sony and Motorola
    has surpassed Apple’s in terms of
    quality and design
   Better and better apps are made
    available every day
Cont.
   RIM’s software is beginning to fell dated and
    the applications available don’t adequately
    rival Apples or Androids
   Apple has a stranglehold over its App store,
    which can be limiting to creativity
   Free GPS software is a big feature, Apple
    and RIM may have to eat into their own
    margins to provide it
Cont.
   With Apple and Rim, the telecoms lost
    control over the user UI, which offers
    future monetization opportunities
   Since anyone can develop their own UI
    for Android, the telecoms can start add
    their own features and apps to the OS
The Less Than Free Business
Model
   With the Android OS Google will
    actually pay hardware makers to use
    their OS
   They do this by splitting ad revenue
   This less than free model will not stop
    with the mobile OS
Microsoft and Windows
   To fend off other Linux based netbooks
    Microsoft already had to lower the cost
    of XP to compete
   With an OS that actually provides
    revenue to hardware manufacturer,
    Microsoft may be completely priced out
    of the market
The Future
   If the netbook market segment continues to
    grow and become the largest segment of the
    home computer market, Google with their
    Android based OS could become largest OS
    provider
   This is feasible as netbooks become more
    powerful, the ability to purchase remote
    access to a powerful computer becomes
    cheaper and faster network speeds now allow
    instant access
Works Cited
   Citation added: Gurley, Bill. "Google Redefines
    Disruption: The “Less Than Free” Business Model."
    Above the Crowd. 29 Oct. 2009. Web. 8 Nov. 2009
   Citation added: Herrman, John. "Giz Explains:
    Android, and How It Will Take Over the World -
    android 2.0 - Gizmodo." Gizmodo, the Gadget Guide.
    5 Nov. 2009. Web. 09 Nov. 2009.
    <http://gizmodo.com/5397215/giz-explains-android-
    and-how-it-will-take-over-the-world

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:9/9/2012
language:English
pages:14