Critically Assess Rationale Alliances Google Entered 10 Years

Google Alliances Google and Samsung Google and Samsung have entered into a 10-year patent agreement to share in each other's patents via cross-licensing through what Samsung calls a broad range of technologies and business areas (Holly, 2014).

The alliance between Google and Samsung for Android mobile devices has been described as something similar to the Microsoft-Intel alliance for Windows personal computers and to be able to form the alliance it required Google to sell its Motorola Mobility business to Lenovo for $2.9bn, so that it will no longer be making Android handsets and will not be a direct competitor to Samsung in mobile devices (Gapper, 2014). Samsung had previously been the shining star for Android-based devices.

When Google bought Motorola in May 2012, Eric Schmidt flew directly to Samsung's headquarters in South Korea to personally assure its executives that Motorola would not get special status in the Android ecosystem (Hiner, 2014). "I told them that the [Android] ecosystem has to be favored at all costs," Schmidt said. "The Motorola products can't be unduly favored, unless you're also unduly favoring Samsung.

If it looks unfair, and then the ecosystem unravels, then it's a terrible mistake." The deal that was made between Samsung and Google consisted of an agreement for a long-term patent licensing deal in which the two industry giants would collaborate with key patented technologies for the Android handsets. Google is gaining greater control over their Android headsets with such an alliance. Samsung has agreed to play the role of a device manufacture and let Google use their software and operating system.

Previously, Samsung used the Android-based platform but customized the system for their own devices. Google Glass and LUXOTTICA Luxottica and Google have agreed to work together across multiple efforts on the creation of innovative iconic wearable devices; through this relationship, Luxottica and Google, who are setting the pace in their respective industries, will match up high-tech developers with fashion designers and eyewear professionals (LUXOTTICA, N.d.).

Luxottica added that the two major proprietary brands of the Group, Ray-Ban and Oakley who has a 10-year heritage in wearable technology that has evolved from MP3 to HUD devices, will be a part of the collaboration with Glass (LUXOTTICA, N.d.). Figure 1 - Rayban Smart Glasses The Google Glass technology has been perceived by popular culture in many ways. There was a big backlash against the glasses in which they were called such things as nerdy and bland.

Therefore, in order to make their Glass products more appealing Google sought to unite with one of the largest sunglasses brand designs in the market. Luxottica will design "innovative iconic wearable devices" under the world's largest producer of sunglasses has pledged to include its marquee brands, Ray-Ban and Oakley, and expects to have its Glass collection hit the market in 2015 (Fontevecchia, 2014).

Many developers and early Glass users were beginning to lose interest in the much-hyped, $1,500 test version of the product: a camera, processor and stamp-sized computer screen mounted to the edge of eyeglass frames (Oreskovic, McBride, & Nayak, 2014). However, the consumer model is generally being put on hold in regards to app development because there is not a big enough market for the product on a mass scale. However, there is perceived to be a large demand in the business world. Imagine, for example, equipment repairs.

With Google Glass technicians should be able to look at an engine, have the Glass recognise which components are in view and call up the instruction manual for these components. If the repair is proving tricky, the technician should be able to live link to the engineering department and stream video back to a local expert, who in turn can advise how to complete the repair (Neely, 2014).

The technology is in the early stages of development and much of the demand will be specialized in the business to business sphere as well as some early adopters. However, by forming alliances with the popular eye glasses brand, Google can likely get closer to growing a larger.