Classroom Companion: Business

 
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Answers
The key businesses of Google are spread over several technologies: search engine, 
consumer services (email, software, hardware), advertisements, and enterprise ser-
vices. Here follows a few of them and how they impacted Google’s business opera-
tions:
1. Android Inc. was a company developing mobile phone software and operating 
system. It was acquired by Google to strengthen its own efforts to develop 
software for mobile phones, e.g., for supporting apps. Google created the Open 
Automotive Alliance (OAA), comprising the world’s leading car manufactur-
ers, to promote the use of Android in cars. Google improved its position as 
software developer by expanding the technologies of Android Inc.
2. YouTube pushed Google into the social media business. Google has, by this 
acquisition, become an important factor in the social media business and 
expanded its business area.
3. DoubleClick offered tools to advertisement agencies and media for increasing 
the efficiency of advertising by combining it with the search engine technology. 
DoubleClick was merged into the marketing platform of Google and Google 
Analytics to improve their own algorithms for targeting advertisements.
4. GrandCentral offered call forwarding and voicemail services. Google changed 
the name to Google Voice and, thereby, made its entrance into the market for 
voice services (e.g., VoIP and voicemail). In this case, Google bought the tech-
nology of GrandCentral.
5. Motorola Mobility produced smartphones, Bluetooth devices, cordless phones, 
set-top boxes, and other mobile devices. Google acquired the company to get 
control over its patent portfolio and, by this action, protect the Android oper-
ating system against infringements.
6. Waze is now a subsidiary of Google developing GPS navigation software. Before 
acquisition, Waze was a competitor to Google Maps. The acquisition therefore 
has strengthened the position of Google in GPS-related applications. For this 
reason, the acquisition is still controversial.
References
Argentesi, E., Buccirossi, P., Calvano, E., Duso, T., Marazzo, A., & Nava, S. (2020, March 4). Tech- 
over: Mergers and merger policy in digital markets. VoxEU & CEPR Policy Portal.
Bannock, G., Baxter, R. E., & Davis, E. (1998). The penguin dictionary of economics. Penguin Books.
Daines, R. M., Nair, V. B., & Drabkin, D. (2006). Oracle’s hostile takeover of PeopleSoft (A). 
Harvard Business Publishing: Education.
References

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Deutsch, A. L. (2020). WhatsApp: The best Facebook purchase ever? Investopedia.
Garza, L. M. (2013, April 24). Metro PRC shareholders approve merger with T-Mobile USA. Reuter.
Gautier, A., & Lemesch, J. (2020, January). Mergers in the digital economy. CESifo Working Paper 
Series 8056, CESifo.
Handrahan, M. (2014, March 3). Interceptor Entertainment acquires 3D Realms. 
Gamesindustry. biz
Locket, A., Wiklund, J., Davidsson, P., & Sourafel, G. (2011). Organic and acquisitive growth: Re- 
examination, testing and enlarging Penrose’s growth theory. Journal of Management Studies, 
48(1), 48–74.