Harvard Case - Google's Android: Will It Shake Up the Wireless Industry in 2009 and Beyond?
"Google's Android: Will It Shake Up the Wireless Industry in 2009 and Beyond?" Harvard business case study is written by Robert A. Burgelman, Amanda Silverman, Christof Wittig, David W. Hoyt. It deals with the challenges in the field of Operations Management. The case study is 33 page(s) long and it was first published on : Jul 28, 2009
At Fern Fort University, we recommend Google aggressively pursue its Android strategy, leveraging its strengths in software development, innovation, and a vast user base to disrupt the existing wireless industry. This involves a multi-pronged approach encompassing:
- Rapidly expanding the Android ecosystem: By partnering with a diverse range of manufacturers and carriers, Google can ensure widespread adoption and create a compelling user experience.
- Investing in robust supply chain management: Google must establish a reliable and scalable supply chain to meet the anticipated surge in demand for Android devices.
- Developing a comprehensive marketing strategy: A targeted marketing campaign will be crucial to attract users and developers to the Android platform.
- Continuously innovating and enhancing the Android platform: Google must stay ahead of the curve by continuously improving the user experience, adding new features, and adapting to evolving market trends.
2. Background
This case study examines Google's foray into the mobile phone market with its open-source operating system, Android. In 2007, Google acquired Android Inc. and launched the Android platform, aiming to challenge the dominance of established players like Apple and Microsoft. The case study explores the potential impact of Android on the wireless industry, considering its open-source nature, potential for innovation, and Google's vast resources.
The main protagonists of this case study are:
- Google: The technology giant seeking to disrupt the mobile phone market with its Android platform.
- Android Inc.: The company acquired by Google, which developed the Android operating system.
- Mobile phone manufacturers: Companies like HTC, Samsung, and Motorola, who partnered with Google to produce Android devices.
- Wireless carriers: Companies like Verizon, AT&T, and T-Mobile, who distribute Android devices to consumers.
3. Analysis of the Case Study
Competitive Advantage:
Google's Android platform offers a significant competitive advantage due to its open-source nature, allowing for flexibility and rapid innovation. This open approach fosters a vibrant developer community, leading to a wide range of applications and customization options, attracting users who value choice and flexibility.
Operations Strategy:
Google's operations strategy focuses on leveraging its strengths in software development and innovation to create a compelling user experience. This involves:
- Product Development: Continuously developing and improving the Android platform, ensuring compatibility with a wide range of devices and applications.
- Supply Chain Management: Partnering with manufacturers and carriers to ensure a reliable supply chain for Android devices.
- Marketing: Developing a comprehensive marketing strategy to attract users and developers to the Android platform.
Financial Considerations:
Google's financial resources allow for significant investment in R&D, marketing, and partnerships, enabling it to compete effectively in the mobile phone market. The open-source nature of Android reduces development costs, further strengthening its financial position.
Challenges:
- Competition: Google faces stiff competition from established players like Apple and Microsoft, who have well-established ecosystems and loyal customer bases.
- Fragmentation: The open-source nature of Android can lead to fragmentation, with different manufacturers creating devices with varying specifications and features.
- Security concerns: The open nature of Android raises security concerns, as malicious applications can potentially exploit vulnerabilities.
Opportunities:
- Growth in mobile internet: The rapid growth of mobile internet usage presents a significant opportunity for Android to capture market share.
- Emerging markets: Android's affordability and customization options make it well-suited for emerging markets with a growing mobile phone user base.
- Innovation: The open-source nature of Android fosters innovation, allowing developers to create new applications and features that enhance the user experience.
4. Recommendations
1. Rapidly Expand the Android Ecosystem:
- Partner with diverse manufacturers: Google should partner with a wide range of manufacturers, including both established players and emerging brands, to ensure a diverse portfolio of Android devices.
- Collaborate with carriers: Google must work closely with wireless carriers to ensure widespread distribution and marketing of Android devices.
- Develop a robust app store: Google should create a comprehensive app store with a wide selection of high-quality applications, attracting developers and users to the platform.
2. Invest in Robust Supply Chain Management:
- Establish a scalable supply chain: Google must develop a supply chain capable of meeting the anticipated surge in demand for Android devices.
- Optimize inventory management: Effective inventory control and demand forecasting will be crucial to minimize stockouts and optimize logistics.
- Develop strong relationships with suppliers: Google should build strong relationships with its suppliers to ensure timely delivery of components and materials.
3. Develop a Comprehensive Marketing Strategy:
- Target key demographics: Google should identify and target key demographics, including young adults, tech-savvy consumers, and price-conscious buyers.
- Leverage Google's existing marketing channels: Google should utilize its existing marketing channels, such as search engine marketing, social media, and YouTube, to promote Android.
- Create compelling marketing campaigns: Google should develop innovative and engaging marketing campaigns that highlight the benefits of Android, such as its open-source nature, customization options, and vast app ecosystem.
4. Continuously Innovate and Enhance the Android Platform:
- Improve user experience: Google should continuously improve the user experience of Android, focusing on features, performance, and security.
- Add new features: Google should regularly introduce new features and functionalities to keep Android competitive and appealing to users.
- Adapt to evolving market trends: Google must stay ahead of the curve by adapting to evolving market trends, such as the rise of mobile payments, wearable technology, and the Internet of Things.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Google's core competencies in software development, innovation, and user experience.
- External customers and internal clients: The recommendations address the needs of both external customers (users) and internal clients (manufacturers, carriers, and developers).
- Competitors: The recommendations acknowledge the competitive landscape and aim to differentiate Android from other mobile platforms.
- Attractiveness: The recommendations are expected to lead to increased market share, revenue growth, and brand recognition for Google.
6. Conclusion
Google's Android platform has the potential to significantly disrupt the wireless industry. By focusing on innovation, partnerships, and a robust supply chain, Google can leverage its strengths to capture market share and establish Android as a leading mobile operating system.
7. Discussion
Alternatives:
- Focus solely on software development: Google could choose to focus solely on software development and licensing the Android platform to other companies, rather than directly entering the hardware market.
- Acquire a major mobile phone manufacturer: Google could acquire a major mobile phone manufacturer, gaining control over the hardware and software ecosystem.
Risks:
- Fragmentation: The open-source nature of Android could lead to fragmentation, making it difficult to manage and support different versions of the operating system.
- Security concerns: The open nature of Android raises security concerns, as malicious applications can potentially exploit vulnerabilities.
- Competition: Google faces stiff competition from established players like Apple and Microsoft, who have well-established ecosystems and loyal customer bases.
Key Assumptions:
- Continued growth in mobile internet usage: The recommendations assume continued growth in mobile internet usage, creating a large market for Android devices.
- Acceptance of open-source platforms: The recommendations assume that users and developers are willing to embrace open-source platforms like Android.
- Google's ability to execute: The recommendations assume that Google has the resources and capabilities to effectively execute its Android strategy.
8. Next Steps
- Develop a detailed strategic plan: Google should develop a comprehensive strategic plan outlining its Android strategy, including key objectives, timelines, and resources.
- Establish a dedicated Android team: Google should establish a dedicated team to focus on the development, marketing, and support of Android.
- Monitor market trends: Google should continuously monitor market trends and adapt its Android strategy accordingly.
- Measure performance: Google should track key performance indicators (KPIs) to measure the success of its Android strategy, such as market share, user engagement, and app downloads.
Timeline:
- Year 1: Focus on expanding the Android ecosystem, partnering with manufacturers and carriers, and developing a robust app store.
- Year 2: Launch a comprehensive marketing campaign targeting key demographics, and introduce new features and functionalities to the Android platform.
- Year 3: Continue to innovate and enhance the Android platform, adapting to evolving market trends and expanding into new markets.
By following these recommendations, Google can leverage its strengths and capitalize on the opportunities presented by the mobile phone market, ultimately establishing Android as a leading mobile operating system and disrupting the wireless industry.
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Case Description
In September 2008, Google and its Open Handset Alliance (OHA) partner, T-Mobile, launched the first Android-enabled smartphone in the U.S. market. Android was a new, open source, operating system for the wireless industry, developed by the OHA, a group which Google brought together in November of the previous year. The introduction of an open source operating system specifically designed for mobile telecommunications had the potential to make a substantial impact on the marketplace. The case describes the mobile telecommunications industry landscape Google faced, and the incentives that the dominant search engine provider would have for initiating the Android project. The case also describes the challenges facing Google, and the Android operating system. By studying the dynamics of the wireless industry available in the case, one may consider whether Google had the potential to become a Cross Boundary Disruptor (XBD) in the wireless industry.
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