Two Imaginary Companies Merge - Case Study Example

Two Imaginary Companies Merge of Affiliation: Executive summery Lexus is an automotive company that is renowned to be the leading seller of the luxury motor vehicles in the United States of America. In the other hand, Google is the world leading web search engine. The purpose of the merger between these two companies is to come up with the GPS system device that can be fitted inside the car to enable the users to operate the car from home. The devise will be called GoogLexus, which is a combination of the names of the two companies involved in the merger. This product will enable the user to operate their car from home in running specific errands such as picking children from schools, picking friends from specific locations and in large scale, GoogLexus is projected to be useful for the taxi business where cars can be sent to collect clients from different locations without involving drivers (Toyota/Lexus 2012). The GPS system will be fitted with the camera that will allow the operator to monitor the events as they happen in the car from a sitting. This will be the first time to develop such GPS system devise in the history of the modern technology, therefore, there are high expectations that this product will perform favorably in the market. The main problem facing this project is how to sell it to the masses because it is a new idea and with the skeptic nature of the masses, it thought that there is a possibility of the project hitting a snug. Irrespective of these challenges, the reputation of these two companies will be vital for the success of this new GPS system device. Background Lexus Company was founded during early 1980s; however, it was launched in the year 1989. Lexus is associated with high quality, luxury, and customer satisfactory cars; these are the virtues behind their success. Lexus is a subsidiary of the legendary Toyota family that is reputed to be the third in the world as far as auto motive maker is concerned. In the United States of America alone, Lexus and Toyota boast of employing more than 31,000 people. In addition to this, they also employ over 160,000 individuals as dealers and suppliers. Furthermore, the total investment of Toyota in United States is approximated to be a massive $12 billion. Lexus and Toyota contribute remarkably towards the growth of the ever-growing United States economy (Toyota/Lexus 2012). The success of this product will rest upon the GPS; therefore, it is important to have background information about it. GPS in full is Global Positioning System; it is a navigation system that is based on satellite. The system comprises of 24 network satellites that are found on the earth orbit, the Department Defense of the United States placed them. Initially, the GPS was meant for military use, however upon further consultation, its usage was extended to civilians in the 1980s. GPS has several advantages in that it can operate everywhere irrespective of the weather conditions. In addition, it is available all day long, be it during the day or during the night. Above all, there are no setup fees that are charged as a subscription or usage of GPS. These are the understandable reasons why the two companies have decided to take advantage of this vital technology in their project. The other partner is Google; the founders of Google are Larry Page and Sergey Brin. They established the company when they were still students at Stanford University. The name Google was derived from a mathematical word googol to symbolize the large number of information that the founders were targeting with their application. The two founders came up with a search tool that was capable of linking various Web Pages together and accessing all the information all over the world. At the time of foundation, Google was only providing search tool that could enable their clients to access information but currently, Google has diversified to other services. The company began humbly with the first international branch in Tokyo. However, from then, Google has expanded to various countries where they have their branches. From that humble beginning, Google is currently the world leading search engine with approximately 65 million users worldwide (Medaille 2010). The official launching of the company took place in September of the year 1998 in a garage of their friend. In the year 2004, they conducted Initial Public Offerings (IPO) and raised a staggering $1.67 billion. Currently, Google boast of more than 12,000 workers in all of their offices around the world. In analyzing the Google’s corporate culture and its mission statement, one striking message that comes out is that it is possible to make money without indulging in criminal activities. Moreover, they believe that work should be viewed as a challenge and the challenge itself should be fun. In other word, work should be fun (Medaille 2010). Google was ranked first as the ideal location to work at by the team of MBA students. In addition, Fortune magazine ranked Google as number one employer in their usual 100 Best Companies suitable for workers. In November of 2007, Google launched their Android system, which was a collaborative project with some of other companies. Consequently, they came up with their revised search tool that incorporated Google maps together with the image searching. These new features were made such a way that they were cell phones enabled. This simply means that that are developed as applications that are installed in the android mobile phones to enable users to identify areas of interest. Furthermore, Google offers their services in 35 different languages that are believed to be responsible for its rapid growth of late. It is true to allege that Google enjoys monopoly as far as search engine is concerned; this is because the latest survey revealed that approximately 83% of the entire web request use Google as their web search. Consequently, Google collect massive revenue of $900 million annually with $150 million net profit after tax. The success of Google is attributed to in depth research where employees heavily involved in devising new ideas for coming up with new products or improving the quality of the already existing products (Medaille 2010). To be exact, it is a policy of the company that all the engineers and workers must spend at least a fifth of their daily working hours on doing research. The products of the research work include several applications for both mobile users and tablet users. These applications include video games, and messaging applications such as Google+. The striking fact about Google is that all employees do share offices including the company founders. This is a smart move because it reduces the cost of business operation as well as a way of motivating employees since it creates a sense of belonging to all the employees that makes them to offer their best services for the benefit of the company (Medaille 2010). Proposal The aim of the merge between Google and Lexus is to develop a GPS system that can be used by motorists to take control of their cars without necessarily being physically present. In addition, this GPS system can provide the users the comfort of sending their vehicles to perform specific errands while they enjoy the comforts of their home. The incorporation of the camera is just an icing to the cake because it enables the users to monitor all the activities taking place inside the car while they are at their homes. The name of the devise is GoogLexus, which is a combination of Google and Lexus. The choice of the two companies that are involved in the Merge is perfect, because the Google will take care of GPS system installation and maintenance, while Lexus will take care of manufacturing of vehicle in accordance to customer’s specifications. GoogLexus has some other features like anti-theft; this feature can control carjacking as well as car theft. It operates in such a way that it is able to take the picture of the intruder automatically then send it to the owner. The owner can then decide whether to inform the police or can digitally stop the engine from wherever he/she is then confine the intruder inside the vehicle by shutting all the doors until the law enforcer arrive at the scene. Alternatively, the owner can decide to turn on the alarm informing the public of the thief. GoogLexus also contain wireless money transfer as one of its features. This feature enables the user to access the major banks account around the world provided the user has an account with them. The fact that it uses the GPS system is an added advantage because the user can access his/her bank account everywhere at any time of the day. GoogLexus is suitable for anybody irrespective of the age. Though it uses the modern technology, the older people can comfortable use it without much difficulty. This is because it is a living version of computer game, it comes with a monitor, and a remote like devise that is used to operate the vehicle. The monitor is installed at control point where the operator can view the vehicle as it moves from one place to another. The remote is the control unit used to dictate all the activities taking place around the vehicle. The good news is that the when you buy any Lexus car then you find the devise already installed at a subsidized cost, in fact half the price of the device when bought a lone. Market analysis GoogLexus currently enjoys monopoly because it will be the only product of the kind in the market. Though there is no competition in the market, GoogLexus is a product of high quality coupled with competitive price that is favorable to all the people regardless of their economic classes. Studies show that Europe and United States are two continents where internet usage is highest. Furthermore, carjacking incidents are also at its most and larger percentage of the population are the older people. In addition, Europe and United States are the continents where Lexus experiences high volume of sales (Rypkema 2007). Therefore, the product will in the first place be sold in Europe and United States, where the gadget when bought together with the Lexus will be sold at $450 but when bought alone will be sold at a price of $1000. After the initial sale, the customer’s feedback will be analyzed with special emphasis geared at identifying the positives and negative aspects of the device for relevant actions. Following the initial sales, GoogLexus will the expand to other continents with preference given to Asia and South America before reaching Africa and other parts of the world. Benefits and marketing plan Consumers that will use GoogLexus will benefit a lot; in the first place, they will have the privilege of being the first people to enjoy the technology of this kind. Secondly, the customers will be able to enjoy sending their vehicles to perform different errands while they enjoy the comfort of their homes. Thirdly, it will provide the best way of dealing with thieves, carjackers, and those involved in vandalism. Therefore, crime rates will decrease with the usage of this device (Rypkema 2007). The market plan emphasis on the two merge parties in that the Lexus who boast of manufacturing high quality luxury vehicles will be useful in producing vehicles that will meet the demands of the market. In short, the vehicle will be the bait and advertising medium for the gadget. In the other hand, the other party the Google will use its reputation of being the leading search engine to win the confidence of the customers so that they can buy the device without any fear. Furthermore, Google will be in a position of reaching at least 65 million people within a short time, therefore will be useful in advertising the device. Conclusion The success of GoogLexus will be a blessing to the whole world; it will be like a dream come true as far as technology is concerned. The world will be able to enjoy the benefits of controlling the cars without necessarily driving them from inside. Furthermore, crime rates will decrease and lives that are lost during accidents will be saved. Concerning the quality of the services GoogLexus will offer, it is projected that it will perform favorably even in the presence of other competitors in future. References Toyota/Lexus 1998-2012: complete service information for all models— cars and light trucks. (2012). Radnor, Pa.: Chilton Book Co. Medaille, A. (2010). A Review of “The Google Way: How One Company Is Revolutionizing Management as We Know It”. Journal of Web Librarianship, 4(1), 102-103. Rypkema, D. D. (2007). Market analysis. Washington, D.C.: National Trust for Historic Preservation. Read More