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Sep 19

Google Android – Strategy of three stages

 

google android

google android

Google is aiming to be the leading guy in mobile internet and is constructing a formidable cloud-based platform in attempt to dominate the ecosystem. It is really interesting that the story of Intel + Microsoft will repeat in mobile internet era. The only difference is that the former glee club will change into Qualcomm + Google(We may call it GooComm). Google is smart and shows a mysterious response to outside. Therefore, not long after, when people find that Google supplants other service providers and content providers after they have found newer and more appealing internet applications, people will come to realize that Microsoft ever did the similar thing. Subsequently, Anti-trust law will be put forward by furious SP/CP to fight against Google.

 

Android is a rather wise tool to implement the strategy of mobile internet. Since Google was a layman to communication industry, Google needed intimate partners to help it to enter the domain as soon as possible. As a result, Motorola and HTC were luckily chosen to play the role. New CEO of Motorola was smart and found the potential opportunity to gain profits by firmly going with Google and also confident Motorola would keep smooth communication with Google for the reason of geography and culture. HTC was well known for its rapid response to market demands. In the first stage, HTC and Motorola contributed a lot to the introduction and stability of Android.

 

However, as the market share of Android has been going up quickly, Google is eager to show its competitiveness over Apple by decreasing prices of android-based smartphonesand making Android popular with as many people as possible. Although Motorola and HTC are seen to ship higher and higher volume of Android phones, their solid business relationship has begun to break. New partners with the capability of providing cheaper design and manufacturing are walking closer and closer to Google and are expected to surpass Motorola and HTC in the next three to five years.

 

When the penetration rate of smartphones globally reaches over 50% after 5 to 8 years, the software and hardware platform will be homogenized and the margin for smartphone vendor will be very low and hence only vendors with large-scale and low-cost production and distribution channel will survive. This era is prepared for current PC or home appliance vendors. In spite of limited R&D ability, they will overcome all problems and gain momentum as the principle in the industry changes.   

 Google Android