External Innovation In Google

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Acquisition in business is related to how a company obtains technologies needed for its businesses. The acquisition can be achieved internally through R&D process or externally through external collaboration such as purchasing, outsourcing, licensing, alliances and M&A. in this essay, I will be discussing the different types of acquisitions adopted by google for its technology acquisition and development and the strengths and weaknesses of such strategy. I will also discuss how innovation is linked to acquisition. At the end of the essay, I will go through the keys to success in planning for external collaboration and are the reasons that can make such collaboration fails.
Google have basically combined both the internal and external types
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According to information published in Wikipedia encyclopedia (2016), google has acquired 190 companies through this type of acquisition. The largest acquisition was purchasing Motorola Mobility which is mobile manufacturing company for an amount of $12.5 billion. It is evident that google found this concept beneficial to invest this much money for a single purchase and an average of more than one acquisition per week since 2010. Actually, many products of google were originated from the companies that were acquired by google. For example, Google sites was originated by web application company called JotSpot and Google Voice was the product of voice of IP company…show more content…
Some merging engineers explore the quantitative side of the merge and overlook the qualitative side of it. Although of the benefits that can be obtained through merges, there were some ugly merge outcomes have taken place. One of the failed mergers was the merger of Daimler Benz and Chrysler in 1998 for an amount of $37 billion. The merger had a tremendous potential from the technical perspective. Daimler Benz and Chrysler were two companies that are specialized in automotive market. Through the merge, this was publicized as the joining of two giant automotive producers not only with two diverse product portfolios but also from two complementary geographies America and Germany. The expectation was high on the structural and financial advantages of the deal. However, the deal became irrelevant when the two companies could not find a means to productively operate under conflicting cultural characteristics.
The main reason for the failure was the cultural differences. The two regions were having opposing cultural behaviors that led to conflict and friction in management and thus affected the whole operations. Although of the strength of the companies but the unhealthy working environment and the loss of team working spirit has led to a catastrophic failure that in turns resulted in selling Chrysler in 2007 for $7 billion with a loss of more than $30 billion as per Megan,

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