Google's company acquisition and partnership - Essay Example

Google’s company acquisition and partnership Google’s company acquisition and partnership Acquisition isthe process by which a company buys most or all of the target company’s ownership stakes and therefore assumes control of the target company. Google recently exercised the process on Android. Due to the acquisition, Google has the power to determine the platform that gets the newest releases and when they receive them. The power gained from the purchase has helped Google improve on android.

The improved android is Nexus devices, which has high Central processing unit, sophisticated cameras, and high standard software. From the acquisition, Google have been able to control the company in their desired direction, which for long have been a problem with android company. Google Company has also licensed the platform that has helped limit control over activities that hardware makers do with android. Due to this control, the company has been able to produce androids with unique functions and features that satisfy customer needs (Lee, 2012).

Partnership is a legal relationship by which companies formed through signing of an agreement carry on business as co-owners. Samsung and Google signed a ten-year partnership to license each other’s current patients and those filed in the future. As a result, Samsung will now be able to access the patents Google garnered as part of its $12.5 billion acquisition of Motorola in the year 2011 (Glasby & Dickinson, 2014). There are various reasons as to why Google is in android takeover. Firstly, it is their growth strategy.

Android demand has been increasing and due to this, Google Company will be in a position to develop their business by meeting needs of customers. Therefore, making profits that will enable them expand the business (MCmorris, 2005). Secondly, their acquisition will help them diversify their risks. The addition also helps in meeting customer needs by producing androids with unique features and functions. Android phones have also been on demand to replace iPhones. The replacement of this product would mean increasing sales of androids hence increasing profits.

The result will help in the development of the firm and expansion of the company, as well as assist in familiarizing the company products with the consumers. The other primary reason for the acquisition is helping Google advertises their company. Since androids are globally used, adding Google apps may assist the organization to make product promotion feasible. Another crucial reason is the talented engineers in Android Company and their great technology. Google wanted the engineers to help in making services more appealing to their clients who access the internet by use of mobile phones (Schwarz, Dutson, Steele, & TO, 2013).

Google and Samsung partnership is one of the best collaborations. First, the company will help in decreasing competition by other firms such as apple, which have been the greatest competitor of Samsung of all times. The war between Samsung and apple was due to Samsung android-powered range of galaxy Smartphone and tablets. The move is also a good indication that Samsung is ethical in business as it agrees to collaborate with Google although there were rumors that they were breaking away from android.

The partnership also shows other companies the importance and benefits of cooperating rather than engaging in patent disputes. Another crucial reason for Samsung-Google partnership is improvement in innovations and reduction of potential for litigation (Sikka, 2014). Reference ListGlasby, J., & Dickinson, H. (2014). Partnership working in health and social care: what is integrated care and how can we deliver it?Lee, W.-M. (2012). Beginning Android four application development. Indianapolis, IN, John Wiley, & Sons.

MCmorris, T. (2005). Acquisition and Performance of Sports Skills. Chichester, John Wiley, & Sons. .Schwarz, R., Dutson, P., Steele, J., & TO, N. (2013). The Android developers cookbook: building applications with the Android SDK.Sikka, P. (2014). Why Google’s Android partnered with Samsung’s security platform. U.S markets.