The Other Side | By Felix Valdivieso, Director of Communication, IE Business School Some say imagine how bad work is that they have to pay you to do it… But joking aside, the good news is that at times there are things you do at work, and people you meet, that you would anyway, just…
DetailsProbably 99% university graduates are only graduating once from university… it’s a once-in-a-life experience and definitely a memorable moment. Find out how it is like graduating from IE University and see our students from the first graduating batch ever! Receiving your diploma in a former church from the 13th century monastery is truly unique –…
DetailsThe Other Side | By Felix Valdivieso, Director of Communication, IE Business School Marketing Prof. Martin Boehm is not a market dog himself, but he loves hot dogs. In this video he explains how the market works while enjoying a hot dog in New York. Playing a sort of devil’s advocate, he proposes that we stop…
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IE Focus | By Enrique Dans, Professor at IE Business School
Google bought Motorola for 12.5 billion dollars, invested in it to make it competitive and then sold it for 2.91 million, keeping its patent portfolio. A tale of success or failure?
Google has sold its Motorola mobile phone business to Lenovo for 2.91 billion dollars, thereby demonstrating that hardware, although it plays a crucial role in strategy development, is seen by the company as being a factor that is somewhere between marginal and accidental.
Google’s acquisition of Motorola was one of the biggest surprises of the summer of 2011. Google paid 12.5 billion for a legendary manufacturer that had come down in the world, but which had a massive portfolio of patents that could be fundamental in navigating the complex scenario of litigations the company was thinking of launching at the time.
Moreover, the acquisition posed a problem. If Google’s strategy with Android was to make itself attractive to all Smartphone producers, how would said producers feel about the fact that the company that was selling them something as vital as an operating system would also be competing against them through its own newly acquired handset manufacturer? Becoming a mobile phone manufacturer was a dangerously incoherent move by Google.
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