Google founded by Larry Page, Sergey Brin and established at 1998, they focus on cooperation in internet services and products such as search, software and online advertisement and mobile phone. Microsoft Corporation is a software corporation that improves manufactures, produce PC, supply, licenses and aid variety products and service involve to computing. They are found by Bill Gate and Paul Allen at 1975, they are the most powerful American software company worldwide and attract various customer. Microsoft and Google have been the most powerful technology brands worldwide in America until now. Both of them have specific features, achieve on the market and attract many customers in the world. However, each of them wants to be on the top and dominates the technology market so the conflict is definitely happen.
1) Define and compare the business strategies and business models of Google and Microsoft. Google were only a search company at that time, but with new system PageRank search algorithms which are analyzed relationship between websites by the number of specific pages and the essential within those pages. Also, with online advertising service, Google can earn various profits like posting the content of any company on the top of website, using Pay-Per-Click (PPC) and so on. Also, the company extents infrastructure and adopt acquisition that permit them to require the fastest search speeds and variety of Web-based products. With those strategies, they make Google become the best searching service in the world. Moreover, Google believes that online application is going to be big businesses in the future, because its center searches and search-advertising business mature. Also, with the development of internet may allow computing tasks in order to be enforced through the website, we can sit on computer and remote control as well as save data centers rather than our desktop. It is called as cloud computing and it is core to Google’s business model moving forward. Microsoft achieved on the market through the strength of its Window operating system and Office desktop productivity applications.
Also, they diversify their operating system and adopt acquisition lots of company to extent their position as well as produce various products that mix more specific features. In addition, they supply variety software for desktops and servers. They are also corporate with mobile phone industries. Microsoft and its products are nevertheless staples for businesses and users look to develop their productivity with computer. For the business model, Microsoft has achieved in establishment the model of desktop computing. Microsoft’s objection is research and development the Internet but they need to convince users to keep using the desktop as the focal point for computing tasks. 2) Has the Internet taken over the PC desktop as the center of the action? Why or why not? No, the internet cannot be taken over by the PC desktop. Because of, consumer may use mobile phone, notebook and so on in order to connect internet immediately at anywhere. Especially, 4G is recently released so it allows user can access internet at the fastest speed or Wi-Fi is also a best way to connect internet. With the positive effect of internet, user can save, download and store data which is called as cloud computing or send data to other person on our mobile phone or notebook. Therefore, consumer does not need to spend lots of time on desktop to perform computing tasks. Therefore, the internet makes people’s life become easier and comfortable.
3) Why has Microsoft attempted to acquire Yahoo? How does it affect its business model? Do you believe this is a good move? Microsoft wants to acquire Yahoo because they desire to improve its Internet presence. Yahoo is internet corporation which is essential development in web portal, Search engine Yahoo, social media website, advertisement, Yahoo!New and so on, they are one of the most famous brand worldwide. So, if Microsoft acquires Yahoo, they can improve in promotion, news, service, web-design. In addition, Microsoft wants to ruin the threat of an advertising deal between Google and Yahoo. Google is a one of the most dangerous opponent to Microsoft. Also Google’s technology keeps improving and arise lots of profit per search. Therefore Microsoft needs to reduce the development as well as presence of Google on the market.
Turning to Microsoft’s new goal, they must achieve in innovate and disrupt in search, win in display advertisement, reinvent portal and social media experiences. Yahoo is a company that consist all of these elements and it appropriates to Microsoft’s campaign. They would focus on developing the internet by acquiring Yahoo. However, desktop computing from Microsoft should be affected because the market share of desktop on the market is decreasing significantly while the important of internet is wider. As a consequence, the market share in Microsoft would be gone down too.
In my opinion, this is a good move for Microsoft. Although, the number of user for desktop computing is decreasing significantly but if they acquire successful Yahoo which is focus on internet. Microsoft can diversify their product and service into new ways. Internet is growing so fast year by year and attracting a huge number of users worldwide, so Microsoft should follow the needs of users to increase the market share as well as revenue.
4) What is the significance of Google Apps to Google’s future success? Google Apps is a series of Web-based applications that include Gmail, immediate messaging, calendar, word processing, presentation and spreadsheet applications (Google Docs) and tools for building collaborative Web sites. These systems are more simpler and not complex rather than Microsoft’s Office applications. Google offers those applications for free to arise attractive and improve the Google’s presence on the market. Meanwhile, customer must pay for Microsoft’s Office applications and they are quite expensive. Therefore, with Google Apps, they can compete and minimize the power of Microsoft. In addition, with the development of internet, Google allow user download their application for free on internet. Also, Google Apps interact with Iphone, Galaxy S3,4 to bring their applications closer to consumer. Google offers Premier editions which is cost $50 per year per user whereas Microsoft offers $500 per person to own their applications. Therefore, Google offers a cheaper price than Microsoft. In the future, Google Apps may attract many consumer rather than Microsoft and help Google gain more profit and push up the power of Google. However, Microsoft Office had been built and spent various dollars for a long year ago to research and develop, attract a huge number of user and they know how to use these application. As a result, consumer may be hard to switch to Google Apps because it is a new systems, user has to learn how to use it and probably generative error at anytime. Therefore, Microsoft Office is a big barrier that prevents the development of Google Apps in the future.
5) Would you use Google Apps instead of Microsoft Office applications for computing tasks? Why or why not? No, I would not use Google Apps instead of Microsoft Office application. In my opinion, Google Apps is quite a new system, it is simpler and cheaper than Microsoft Office. However, Google Apps is designed for users who use computing task at the first time. It is all about fundamental version of Microsoft so consumer will learn how to use computing task efficiency. But, Microsoft Office had been existed for a long time ago and attracted many consumer as well as high level of satisfaction. Nowadays, most people use Microsoft Office as their first choice, they can pay for them, and even it is quite expensive. But the operation and system from Microsoft Office are very professional and interact fully with computing tasks. Even when consumer uses Macbook, Imac, they download software from Microsoft like window 7, 8 to use Microsoft Office. Although, Apple create iWork but there are little people use that system. Therefore, I will follow Microsoft Office and continue to use it as my best choice.
6) Which company and business model do you believe will prevail in the epic struggle? Justify your answer Both of Microsoft and Google are the most popular on the market worldwide. Microsoft has built and developed computing tasks for a long time ago. Also, their product and service are draw attraction from many users, they satisfy consumer’s need and what they want. In addition, Microsoft diversifies to mobile industry by cooperate with Nokia. They are also creating lots of special software that many consumers use such as window 7, 8, XP. Microsoft believes that desktop computing will dominate the market in the future but with the developed internet, desktop computing is no longer use. Internet is now the most important for consumer. Google is a company that very good in development their product and service related to internet. With search engine, advertising, web-base, Google Apps, Google App Engine (allow programmer creates their own application), they allow user performs computing task through internet, user can use mobile phone, notebook to connect internet and integrate with these applications. With this business model of Google, they attract various users worldwide and improve the presence of Google. Therefore, Google may prevail in this dispute compare to Microsoft
Microsoft is stronger in development computing task, desktop and software. They have satisfied consumer and attracted many users. However, Google makes all computing task through internet. This is a thing that Microsoft cannot be better than Google. Because of internet is the most necessary thing in people’s lifetime. Therefore, computing task operates through internet is extremely important. And Google achieved on this way. Therefore, they will keep growing in the future, invent modern products, services, software and interact with mobile industry.