Google, Apple and Microsoft are three tech giants that are struggling to gain control of the market and our internet experience. With the ever-changing advancements of today’s technologies it is inevitable that there will be ups and downs for all three based on the changes and how people take to them. Each new advancement in technology that is unleashed to us has a broad spectrum of consumer groups and when one of the companies is able to latch onto one type of consumer group, many others follow. 1. Compare the business models and areas of strength of Apple, Google and Microsoft.
Google has gone though some growing pains but it considers itself a mobile company now and its business model reflects that. (unknown, July 2012) they have changed with technology. They were basically advertising but since the move to mobile technology does not make as much as advertising on a PC did, they had to change gears. Google is now selling a few types of mobile devices that include android technology on gaming devices, phones and pads in order to compete in this new wave of technology. This allows Google to have people take Google wherever they are.
Apple’s business model (with Jobs) began as a quest to be the best. Steve Jobs started it; the company was sort of stagnant after his leaving and then upon his return has become one of the top contenders in technology. Apple began by making the PC “beautiful”. He designed computers to look like more than big grey boxes on desks, so that they seemed appealing. Then he made it better, easier to use and stronger than other PC’s. When the PC market plateaued, mp3 players, cell phones and then eventually tablets were the focus for consumers. (Muehlhausen, 2010) They make a PC, the IPhone and IPad.
They continually improve each of them along with a steady stream of applications that can be used on them. They supply the devices, software and services while only using a few select suppliers. Apple’s model was/is to continually improve one small product line in order to succeed and it works for them. Microsoft has been rather stagnant or not quite up to competing, but they have maintained their market share in the technology arena. Recently they have changed their plan. They are trying to ensure all of their products work together and when used complement each other. Mourdoukoutos, 2012) Microsoft has a big market share but has not done the improvements and growth that Google and Apple have in recent years. Basically, Microsoft is the PC operating systems giant. Management Information systems refer to the three as a triangular network. (Laudon, 2012) Each company befriends another to benefit itself and prevent one from cornering the market in their stronger area. The strategy actually seems to work for them as they all are remaining competitive. Apple is the leader in mobile software applications, Microsoft is the leader in pc operating systems and Google is the leader in advertising.
Each of them is trying to be the leader in mobile which is where technology is headed and each of them definitely plays off of one another and all have a hand in each other’s expertise to get their share of tat piece of the market. 2. Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings for each firm. The speed at which technology improves and changes is quicker than businesses can keep up with. Right now it seems that profits from advertising are decreasing. unknown, July 2012) PC usage is still there but technology allows us to now work on the go, more and more devices, applications and new technology allows us to work anywhere, so mobile gets a lot more use and is predicted to be where technology is going. Mobile devices account for 5% of current searches and it is expected to increase to 23. 5% or more by 2016. (Laudon, 2012) That means that all three need to continue to provide innovative technology to the mobile platform if they want to stay competitive. Apple has a very loyal customer base, Microsoft has the operating systems for PC’s and Apple and Google for mobile devices.
Microsoft is “breaking” in to that arena, but does prove to be innovative so they will remain a source of competition. Google and Apple rule in the mobile device area and will continue to improve. Apple has the Applications to go along with its phones and pads and ensures that their systems work well together and always try to keep it as a somewhat exclusive product by the business dealings with its suppliers. Google has the android operating system which is Apple’s biggest competition, plus they have the market on advertising. 3.
What is the significance of applications and app stores to the success or failure of mobile computing? The IPhone and smartphones popularity coupled with the expectations and optimism of mobile technology is mostly based on the success that app stores have had in conjunction with their use. (Laudon, 2012) Apple has been wildly successful in the app store arena. They take 30% from all app’s which gives them a significant market share. Google has the android system which is also an app based system and they too are making money with apps. The phones without the apps are just phones.
Apps are the future of mobile usage and taking your “computer” with you is the way of the future. 4. Which company and business model do you think will prevail in this epic struggle? Explain your answer. I am not sure who won’t prevail, as I believe all three companies have something to offer to the different tastes of the consumer. From an investor’s standpoint, I think Apple is going to have to prove they can survive without Steve Jobs, by coming up with a new product, but I also think that he may have left them the guideline to do just that.
He knew they would hold their own without him but in history past, they were not innovative without him and I am confident that he left something in the works to keep the consumer thinking Apple is the company they should be with. All they need is one great thing without Steven Jobs and they will have proved themselves in the eyes of the tough consumer. Google is right on top of Apple; they acquired the android system and also have apps, so they will get any customers that don’t go with Apple. Microsoft is new in this arena; however, I do not think that Microsoft would be competing in this arena if Steve Jobs were alive.
The personal relationship between the 2 founders was enough for Microsoft to know they could not compete in this area or didn’t want to because they knew Steve Jobs had the insight in this area. Since his demise, I think Microsoft feels it has opened up a pathway for them to enter the arena. Plus, it is fresh business for Microsoft. So, after excelling in one thing for so long it must be refreshing for them to try to launch a fresh product and enter a new arena. 5. What difference would it make to you as a manager or individual consumer if Apple, Google or Microsoft dominated the internet experience? Explain your answer.
I would not want to see any one company dominate as it would eliminate choices for us as a consumer. I like that Apple keeps its devices to a minimum and continually improves them. I like that Google has android and can compete with Apple. I also like that Microsoft s entering the arena because now throwing a 3rd company into the mix means it might just benefit the consumer now and the technology or phone plans may be better for us. I think that it is great that these companies compete, have their own separate strengths and that they are trying to be innovative in capturing consumers by upgrading the technology.
BIBLIOGRAPHY
Laudon, L. &. (2012). Management Information Systems. London: Pearson . Mourdoukoutos, P. (2012). Can Microsoft adopt Apple’s Business Model? unknown: Forbes. com, http://www. forbes. com/sites/panosmourdoukoutas/2012/10/10/can-microsoft-adopt-apples-business-model/. Muehlhausen, J. (2010). Apple’s Business Model, Before and after Job’s 2. 0. Business Model Institute. unknown. (July 2012). As Google changes business model, its revenue keeps rising. NYC: NY Times.
