Google's Android: Will IT Shake Up The Wireless Industry in 2009 and Beyond?

ndroid Presentation
Google’s Android: Will IT shake up the wireless industry in

2009 and beyond?
During the first start, Android was founded by Andy Rubin and Chris White. They were
developing use Open source operating systems for digital cameras. Meanwhile, Rich Miner was
working at the Orange Ventures, a part of France Telecom observing the need for carriers to
have a new, more powerful handset platform, that could be deeply branded. Soon, Miner met
with Rubin, who had started idea of an open operating system on mobile phone, they began to
retarget the Android effort toward the mobile phone.
In July 2005, the team sold Android to Google and stayed on after acquisition until November
2007 when Google unveiling of the Open Handset Alliance (OHA), and made the announcement
of Android as an open source mobile operating system for mobile phone. The OHA had 34
partners including mobile carriers, chipset and handset manufacturers, and application providers.
Android is the first Open source operating system, which can make a difference and meet the
needs of the service are as follows.
Business Model
Value Proposition
1. Low cost: the App developer has only a registration costs and telephone users can have many
Apps to download for free
2. Easy to get Apps: Users can download more than 20,000 applications for free
3. The innovation of Google: Google never stop developing
4. Convenience: Android provides the convenience with the service that Google provide on the
handset
5. Easy to develop: Android uses the Software Development Kit (SDK) which is easy to develop
by using C Programming Language or JAVA.
6. Network Effect: Partnered with Google, Android can have the network of customer and also
create value added to Android.
Market Strategy
Product
Android is open source which the developer can improve the software easily by using SDK
(software development kit). In the future Android’s application will be develop to customer need
such as entertainment apps, Game, and basic usage in everyday, these make Android grow fast.
Version of Android
version 1.1 (Noname)
Android 1.5, i.e. Cupcake
Android 1.6, i.e. Donut
• It fixed reboot errors in the OS as well as revamped photo and video features (i.e. camera
interface) and better search integration. It also added support for larger screen size, and is the
first version to offer Google turn-by-turn navigation feature.
Android 2.0 / 2.1, i.e. Éclair
• Added features include Bluetooth 2.1 support, flash and digital zoom for the camera, multi-
touch support, live wallpapers, and more.
Android 2.2, i.e. Froyo
• improved speed by adopting the Javascript "just-in-time" compiler engine from the Google
browser "Chrome", as well as improved browser support by adding animated GIF support, Flash
10.1 plug-in support, along with USB tethering and Wi-Fi Hotspot capability (for those with
supporting hardware).
Android 2.3, i.e. Gingerbread
Android handset
HTC G1 was the first mobile phone that launches to use the Android. Later Motorola, LG,
Samsung, Sony Ericson, vodafone, and Nexus ,etc were produced to support the operating
system of Android.
Price
cheaper than the competitor compared to the quality that they receive
Place
Customer can free of charge download Android to their mobile from Android app store
Promotion
1.Form the support of Google who is the partner of Android.
2.from the handset manufacturer.
3.from the chipset manufacturer.
Revenue model
Google’s Android has two ways to earn revenue
1.register fee
2.Advertisement
Situation analysis
Five forces analysis
1. Bargaining Power of Customers: Low because there are few open-source service providers
and switching cost is rather high.
2. New Entrants: Low because the industry requires high technology and high investment
3. Threat of Substitute products: High because there are lots of operating systems for smart
phone.
4. Rivalry among existing competitors: High because there are already big, established
companies in the industry.
5. Power of Suppliers: High because handset makers have many alternative choices of OS.
Swot analysis
Strengths
•The Google Brand
•Device Selection
•Competitive Pricing
•Google application and services integration
•Open Source
•Google Assets
Weaknesses
•Multimedia Support
•Reliance on hardware makers to upgrade
•Less Mature
•Lack of Enterprise Support
Opportunities
•Opportunity to get into the Tablet and e-book reader platform market
•Developing Countries
•Developer Friendly
•Growth of smartphone market
•Embedded electronic devices
Threats
•iPhone
•Apple dominance
•Increased Competition
•Platform Fragmentation
Android competitive advantage
Open source
Mobile internet
Consortium
Reputation
Issues on a case study

1. The relationship problem between Android and Carrier as there are apps similar to voip,
skype, facetime that have direct impact on revenue model of carriers which rely on voice. If
customers switch from using voice to use these apps, carriers will lose revenue. One solution for
carriers is to come up with data package such as BB package, iPhone package and charge
customers based on how much they use the service.
2. Andriod apps developers don’t earn much comparing to iOS apps developers. Andriod should
attract app developers to develop apps for them in order to compete so the solution is to change
revenue model to rely more on advertising model that display ads on the free apps.
3. Market share problem. Android is afraid of Nokia Symbian because even now, majority of
handsets use Symbian. If Symbian can develop an open source, it will be a major competitor as
there are more phones that support Symbian than Andriod. The solutions for this are:
• Develop various applications for customer to easy to access and use.
• Improve the quality of Android software to access internet faster.
• Improve hardware (such as chipset) to reach the best quality and meet the standard. Also
innovate new technology with the modern design for handset.
• Keep the relationship with the open handset alliance (OHA) this is the one advantage of
Android over Nokia because Nokia do not have any alliance to support in term of patent, reduce
cost and etc.
Lessons learned
1. The variety of application that can response almost the need of customers.
2. The simplicity to use application because customers don’t want to spent time to learn how to
use apps.
3. The stability and speed to access to the internet because customers do not want to wait for
long time when downloading.
4. Build the network within the industry like OHA (Open handset Alliance).
Updated information
• Android Passed iphone in total U.S. Subscribers. The latest mobile subscriber estimated are out
from comScore, and for the first time in November, 2010, Android passed the iPhone in total
number of U.S. Smartphone subscribers.
• Android 3.0 “Honeycomb”
• The Future Version of Android isn’t called ice cream but it is ice cream sandwich.
page revision: 4, last edited: 9 Feb 2011, 23:06 GMT-05 (58 days ago)
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