Ib Extended Essay

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EXTENDED ESSAY
BUSINESS AND MANAGEMENT

RESEARCH QUESTION:
“How effective would the takeover of Motorola mobility be for Google as a growth strategy?”

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ACKNOWLEDGEMENTS.
I would like to thank my extended essay supervisor for her continuous support throughout this assignment. Her guidance and patience have been of great help to me in completing this task.

I would also like to thank my family and friends for their endless support and for always providing me with the encouragement to continue working when times were difficult.

ABSTRACT.
In August of 2011, Google announced that it would take over Motorola mobility in an attempt to boost its mobile phone software i.e. ’android’. This headliner in the world of technology inspired me to undertake in depth study and hence come up with the following research question: “how effective would the takeover of Motorola mobility be for Google as a growth strategy?” To answer this question I have used a combination of both primary and secondary research, though most of the information needed was obtained from the latter i.e. secondary research. Figures for previous and current market share have been used to analyse the possible effects of the merger and the opportunities available for exploitation. Business & Management theory and principles were applied to analyse and demonstrate the consequences of the takeover for Google and whether it would be successful or not. Analytical tools such as the Ansoff matrix and the B.C.G matrix were used to show the current position of the companies and possible future outcomes. The essay arrives to a conclusion that the takeover could prove to be a worthwhile investment as it enables Google to acquire an extremely large number of patents and also it provides a great opportunity for them to spread their risks through diversification. Google should go ahead with the investment as it will enable them to gain an advantage over competitors since they will have the ability to use their software in their own phones. Word count: 242

CONTENTS.
ACKNOWLEDGEMENTS ………………………………………………………………………………………………………… ABSTRACT…………………………………………………………………………………………………………………………….. INTRODUCTION…………………………………………………………………………………………………………………….. GOOGLE……………………………………………………………………………………………………………………. MOTOROLA………………………………………………………………………………………………………………. THE TAKEOVER…………………………………………………………………………………………………………. OBJECTIVE……………………………………………………………………………………………………………….. METHODOLOGY………………………………………………………………………………………………………. ANALYSIS………………………………………………………………………………………………………………………………. INTERNAL GROWTH………………………………………………………………………………………………….. EXTERNAL GROWTH…………………………………………………………………………………………………. DIVERSIFICATION……………………………………………………………………………………………………… ANSOFF MATRIX………………………………………………………………………………………………………. B.C.G MATRIX…………………………………………………………………………………………………………… MONOPOLY ?...............................................................................................................

CONCLUSION………………………………………………………………………………………………………………………… BIBLIOGRAPHY……………………………………………………………………………………………………………………….

INTRODUCTION.
MOTOROLA MOBILITY.
Motorola Inc. split up into two separate public companies namely Motorola Mobility and Motorola solutions on January 4, 2011. This was after Motorola had made a total loss of 4.3 billion USD from 2007 – 2009.1 Motorola mobility is now in charge of producing the handsets, along with cable set-top boxes and cable modems.2 This firm now focuses on producing mobile phones and uses the android operating software for some of its mobile phones. It owns huge amounts of intellectual property i.e. 17,000 patents worldwide.3 GOOGLE.4

Google initially started only as a search engine in the year 1998. It was...
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