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What makes Android a strategic asset for Google?

Approach / Explanation

This question requires you to examine Google's choice to invest in Android and emphasize its importance to their overall business strategy. You should tackle this by discussing Google's wider objectives, the role of Android in the mobile market, and how Android fits with Google's strategic goals. Your response should reflect your understanding of Google's business model and aspirations.

Suggested Answer

Android plays a crucial role in Google's strategy for a variety of reasons. Firstly, Android broadens Google's influence . Through Android, Google caters not only to users of their desktop search engine but also to mobile device users. With people spending more time on mobile devices than on desktops today, leading in this area is essential. Secondly, Android helps keep users within the Google ecosystem. Since Android is integrated with various Google applications (such as Gmail, Google Maps, Google Play Store, etc.), users of Android devices are more inclined to engage with these services, resulting in enhanced user engagement . Lastly, Android gives Google access to vast amounts of data. By controlling the operating system used by a large number of mobile devices, Google can gather valuable insights into user behavior, which is key for customizing advertisements , making them more effective and profitable.

Alternative Answer

Android is crucial to Google's strategic vision in various aspects. To begin with, there's the significance of Big Data . As the operating system for a vast array of devices globally, Android provides Google with an unparalleled volume of data regarding user preferences, behaviors, and habits, which can aid in developing improved products and enhancing the precision of their advertisements. Next, it revolves around advertising revenue . A substantial portion of Google's income is derived from advertising. Android facilitates greater access to Google’s services, where the majority of its revenue comes from search and display ads, thereby enhancing the visibility of these advertisements. Finally, Android embodies Google's overarching mission – “to organize the world's information and make it universally accessible and useful.” Through Android, Google can offer a platform that fosters accessibility for individuals around the globe, even in regions where personal computers may not be as prevalent, thus significantly expanding Google's user base.

Question Details

Difficulty & Category

Medium
product strategy

Companies

Google

Product

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