Google's Googly - Android One

“Bada Hua To Kya Hua Jaise ped Khajoor, Panthi ko chaya nahin phal lage ati door”

English translation “In vain is the eminence, just like a date tree, no shade for travellers, fruit is hard to reach.

These lines were taught to me when i was kid and i must confess that these lines had huge impact on me. These lines emphasize that we should shed our greed, selfishness, and insecure tendencies and should be willing to give and share. Once we help other with pure mind and soul we become blessings for others.

But Question of the day is in business do we really follow these lines? Answer is “No”. Let’s take example of one big company like Google and let’s evaluate their mobility business.  Google has Operating system called Android and they keep launching different version of operating system with funky names like kitkat, sandwich..etc.  No doubt that each version has more similarities and less differentiation. We can say each version is mirror image of version in itself with little icing.

One of their product Google app store is suppose to be household name among consumers. Thats what Google says! Is it? So lets ask question to our self “What is google app store”. For me it is simple aggregation of applications. There is no rocket science in that. Brainers are the ones who publish the apps as the apps flow, idea, conceptualisation and publishing are developers/publishers brain. Where is Google brain in that?  Fine let us be little kind to Google and say that they are the brain behind OS which controls 40% of world market.  So will they be able to retain their market position in future? Will it be successful in its future ventures?

App Ecosystem consist of three main stakeholders a) End Consumers b) Developers c) OEM’s

Lets analyze all stakeholder one by one.   

1.       End Consumer – First question which comes in mind with respect to end consumers is “what value add it brings for end consumer. The Obvious answer we have got from Google is “By emphasizing on vernacular apps “& “By launching low cost model devices with Android one “ Well if you think from end consumer point of view there is no difference between local app store and Google store. In fact local app store is any day better than Google store because of its localized, customized display of apps. Hence we can conclude that from end consumers point of view there is no value add from Google app store. End Consumers download app from Google store not because it brings value in their life but it is easily available on their mobile phone. In other words simply burned on their handsets. It’s just the convenience for end consumers not value add. We should not confuse between convenience and value add. With Google app store It just that end consumer does not have to type the extra link to get into app store. There is absolutely no consumer engagement, zero benefit from Google Store hence I personally would recommend to check out local app stores than Google as they are more focussed, customised and bring more value for consumers.

2.       Developers – An article published in the leading newspaper states that “95% of android developers are unhappy and their earning is as low as 200$/month. Developers are unhappy because there is no one to listen to their complains and absolutely zero support from Google. Google support is termed as one of the rudest support. They will never give any explanation or will give vague explanation and will terminate developers account without any proper reason. So if you have enmity with x developer, you should only know that developers app link or icing on the cake would be if you also know Google employee who handles app support & just share the link, Sit back and enjoy watching your enemy account getting terminated without any reason. If you are developer and your account is being terminated you would have got vague reason, Keyword stuffing, inappropriate content.. etc etc.. no further reason given as which keyword has caused the termination of account.  We can sum up all this melodrama of app store in three words “ Sic Business Tactics” But at the end of the day its Google which has deep pockets and best talent hence they show their muscle power to developers. Little do they know they if these developers come together and boycott Android completely they will be left nowhere. Google being big daddy forgets that such attitude and negativity among developers will only lead to destruction. Negative image of Google brand will only bring disliking among developers as well as end consumers because somewhere developers are also end consumers and pen is mightier than sword, Word of Mouth is stronger than marketing spend. If this continues then that day is not far away when Google will be on sale and we will ask "Any Buyers ?????????"

3.       OEM’s - Original Equipment Manufacturer like Samsung, Nokia, LG.. etc controls the integration with operating System like Android.  Since GSM is an open market hence we have many players in OEM space hence they are one of the main influencer of bringing OS to the end consumer. Recently Google had partnered with Micromax, Spice and Karbonn  to release Android One smartphones. With the launch of these low cost smart phones they offered 2 year software support. Do you think this handshake between local OEM’s and Google was success venture?  Did Android One handsets was successful in India ? No it was not. Android one smart phones were priced between $200 & $300. The estimate sales figure for Smartphone during festive season is generally reported 0.2 million units however as per the record Android One have reached only half to 1/3^rd of the above number. One of the reasons of Android one failure is given to Google’s inability to explain the difference between Android and Android one. In spite of huge marketing spend by Google, they have failed to explain the consumers the difference between Android One device and regular android device. Is Android One a project that gives lighter version of Android. There is no clarity. Or in simple words is it the cheaper version of the main Android Handsets. Launching with Local OEM’s like Micromax, Karbonn and Spice it is quite evident that they have not placed Android One for premium segment. Their vision is to increase market penetration. In all this Marketing Gimmick they have failed to learn from Nano. Indian Consumers are not only intelligent but also smart enough to know where to get value for money. Each purchase by consumers in India is the end result of online and offline research. I am sure value for money doesn’t stand with combo of Android one + Micromax, Karbonn or Spice. And launching Cheaper version cannot be termed as innovation.

 

Summing up the above discussion and going by Google’s interaction with developers, end consumers we can conclude that Google’s Motto is “DO EVIL NOT GOOD”. Little do they realise that evil character whether in game, movie or life eventually die and is replaced by Good.

 

We are definitely looking forward for new OS by Samsung, and expansion of Windows OS. I personally feel that in coming years Windows will rule the Smartphone market and Nokia, Blackberry will retain its market share. Let’s end this article with these lines. “Future is Windows, Future is Nokia” After all Satya always win!!

 

PS: This write up is personal opinion of writer and is not influenced by any third party.

 

Diary Of An Entrepreneur

Long time back Radhika completed her post graduate diploma. While finishing her post graduate diploma Radhika was offered to take Audit subject. ( Audit is given to those whose percentile is 7.0 and above and is usually taken outside the student’s core subjects) So she decided to take finance as subject.

The small introduction given above is to make you guys understand that Finance is the subject which interests everyone and trust me its not rocket science. Small shopkeeper to big corporate all deal in financial management. The beauty of this subject is that its basic is as simple as your elementary school basics.

Lets evaluate today’s scenario. In today’s scenario corporate deals with very basic question 1) What investment should they make 2) How should they pay back for those investments. The first question involves spending money. The second question involves raising it. Any entrepreneur will emphasize on increasing the valuation of their company. It’s very simple logic “Increase valuation” but not easy to achieve. It is like asking an investor “Buy low, sell high” It is one of the powerful statements and if achieved can make you millionaire or billionaire depending upon the valuation price at buying and selling. But million dollar question is “How to do it”

Investment and Financing decisions are separate. When an investment opportunity or project is identified, the entrepreneur evaluates whether the project is worth more than the capital required to undertake it. If the answer is yes then he or she considers how the project should be financed. But the separation of investment and financing decision doesn’t mean that the financial manager can forget about investors and financial markets when analyzing capital investments project.

So if you are an entrepreneur it is very important for you to analyze the way the capital is raised. If its the 1^st level funding then you must check whether the investors and your goal are same or not. When you shake hands with the investor you should also clearly draw the line of involvement.  In other words whether the investor would be interfering in day today operation. If answer is yes then they should discuss the area of expertise and decide to work as team. Trust me its great feeling to have investor who can be involved in your day today operation as you get help in the form of mentor or few decisions (which you are not sure of!) You fail together and you pass together.

Usually investors are interested on ROI (return on investment) . While exiting business you can consider following options 1) Preference Share (certain percentage) after x years 2) Preference share with option to redeem at safety net price (Price can decided mutually) or convert the same into equity shares at prevailing value. In other words 1^st preference could be IPO, 2^nd preference could be secondary sales and 3^rd preference could be buy back at net safety price.

Your exit strategy is as important as choosing you business partner. There should always be separation of ownership and management. If you are founder & running company as well then you should forget the tag of founder and work as normal manager. The separation of ownership and management has clear advantages. It allows share ownership to change without interfering with the operation of the business. It allows the firm to hire professional managers. The negative part of it is that it brings problem if managers and owners objectives differ. Dangerous part would be rather than attending to the wishes of shareholder managers may seek leisure or luxurious work. They may shun unpopular decision or they may attempt to build an empire with shareholders money.  Hence integrity is always an important criterion of hiring. Become man of value not man of success.

Concluding this write up in 9 financial problems you should never overlook

1)      What is Project Risk & what is net present value

2)      Incorrect Evaluation of Risk & returns

3)      Importance of exception to the efficient market theory

4)      How the Net Present Value is calculated

5)       Before investing what are the danger points of new securities and new markets

6)      How to resolve payout controversy in other words when to distribute dividends

7)      Value of Liquidity

8)      Wrong merger steps

9)      International difference in financial architecture.

Takeaway would be invest sensibly & in planned manner. Stay home, build the future of home managers as foreign investment may involve high risk. Understanding international market takes time & could be highly risky. Always invest in international market through merger or acquisition. Don’t confuse total risk with market risk. Take risk and consider mitigation, after all its your money it’s your bread and butter !