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Aug 16
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The business world was turned today by the news of Googles $12.5 billion purchase of Motorola. The big question is why is Google buying a dying business like Motorola? Maybe for its patent portfolio?
Remember AOL-Time Warner? And few people today probably recall that Exxon entered the computer harware business in the 80s. Another flop. This will be so too. Google has just committed the error of a mature company: thinking they can run any business. They are moving further away from their core expertise. There will not only be a huge culture clash between the companies but different skill sets needed for success. Jobs isn’t worried about this, but cheering. It confirms his business model and Apple, unlike Google, does understand manufacturing, supply chain management and consumer product marketing.