Why did Google make this move?
Google’s motivation to bid into the wireless marketplace through the use of the 700MHz Spectrum Auction was the opportunity to develop a 50 state network. This new product development would allow Google to become a cellular network operator. This market includes firms such as AT&T and Verizon, Google would not only compete with these firms but would also have opportunity to network with other entities to develop some innovative new products.
What do they hope to accomplish?
The prospect of entering into the wireless market offers Google many potential growth and development practices as well as competencies. There are also many risks associated with this ...view middle of the document...
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It looks like Google wants to get into wireless, yet, wireless is not one of Google’s core competencies. What should Google do about this?
Google has a history of branching out into many diverse businesses, such as WiFi and online bill pay. Oftentimes over the years there doesn’t seem to be a method to the business strategy madness for Google. They have now entered into the wireless world which is not their core competency. Google has spent $3.9 billion in the last eight quarters on capital expenditures. It could easily spend some $8 billion on spectrum and network construction. That’s a big step away from its core competency and you can bet that incredible market cap isn’t going to stick around forever. What goes up must come down, especially as other online search companies close in on the company.
Apply as many TCOs as you can to Google’s migration to Digital.
TCO A- Google’s dynamics of technological innovation of migration to digital
The reason that Google has struggled to apply this core competency to offline media, i.e. magazines, newspapers, and not TV, is that these media lack both the...