Google is looking to buy HTC assets to improve their hardware business. The massive tech firm wants to create a strong market that will keep up with their major competitor, Apple, recent innovations at Google have failed to measure up with its phone technology. This would help Google gain greater control of their own technology such as the pixel smartphones as they are expected to buy HTC for a net pay of $10 billion.
One of the major threats however, if one conducts a competitive analysis of this plan, is the fact that Google has a history of struggling in the market when buying other tech hardware which has concerned several investors. In 2012 Google lost value on the market after it sold off Motorola Mobility which it had paid $12.5 billion for. It failed again in 2014 when it tried to buy Nest Labs who makes thermostats. However, one strength google has which sets it apart from many other companies is the fact that they are a well-established company, whose needs are not extremely desperate on the stock market but who wants to continue to innovate forward. As a result, Google can afford to drop if the plan fails. However, Google is less likely to fail this time because they now have their own phones and therefore, merging with HTG should make it easier for Google to innovate its products.
Overall the tech industry has the possibility Apple could start to have a major phone competitor with the improved Android phone. This could bring Google closer than ever before to Apple in the development of sophisticated smart phones. Google can reach a new target market which consists of the many consumers around the world who are hesitant to buy Apple’s new $999 Iphone 8. This could be a major turning point for Google in establishing it as more than just an online search engine but also a vital part of the future of technological devices.