...Define and compare the business strategies and business models of Google and Microsoft. Google: Its business model has always focused on the Internet and the Web. It began as one of many search engines. It quickly ran away from the pack with its copyrighted PageRank search algorithm which returns superior search results for Web users. It also has developed extensive online advertising services for businesses of all sizes. It’s ability to attract the best and brightest minds in the industry helps make it one of the most successful Web-based businesses ever. Google provides value to the user by using an inexpensive, flexible infrastructure to speed up Web searches and provide its users with a vast array of Web-based services and software tools. Microsoft: Its business model originally focused on the desktop computer running the Windows operating system and Office desktop productivity applications. The company and its products are staples for businesses and consumers looking to improve their productivity with computer-based tasks. While it is trying to expand its presence on the Internet, it still must try to keep customers bound to the desktop computer. 2. Has the Internet taken over the PC desktop as the center of the action? Why or why not? The technology and computing world seems to be approaching the point where the Internet has taken over the PC desktop as the center of action thanks to Google and software-as-a-service companies. The Internet continues to develop...
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...microsoft In order to reach our goal of understanding all aspects of financial management, we will study the business models and financials of two very successful companies in the technology sector, Microsoft Inc. and Google Inc. Let us first look at one of the pioneers of computer software with graphic user interface technology.Founded in 1975 and based in Redmond, Washington, Microsoft employs 91,000 employees. It develops, manufactures, licenses and supports software for computing devices. It includes operating systems, business software, entertainment software and internet software. It also runs the MSN network for internet services and products. Though competition to Microsoft has increased, it still has the largest share of the personal computing market. Over the years Microsoft has expanded and branched out into consulting, product support services and video game consoles and PC games software.Microsoft, in the past 36 years of its existence has grown into one of the largest companies in the US, with a market cap of $215 billion dollars. Its 2010 annual revenues were $69 billion with a diluted EPS of $2.69 per share and it pays a dividend of $0.64 a share. The core business of Microsoft has always been the Windows Operating System and it continues to upgrade the same on a regular basis. After starting with the DOS (Disk Operating System) in 1978 and then going on to develop Windows 3.1 and Windows 95 the first user friendly GUI based operating system, their latest...
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...Business Problem-Solving Case (page 317): Google Versus Microsoft: Clash of the Technology Titans 1. Define and compare the business strategies and business models of Google and Microsoft. In comparing the business strategy and business models of Google and Microsoft both technology titans, Google is a very popular search engine tool use for finding any information on the World Wide Web in the shortest possible time. Google began as a search engine and as such its business model focuses on both the internet and the world wide web. The suceccess of Google grew, as they became supervior in the search quiriews by users. the company focuses on internet and the world wide web. Google: Its business model has always focused on the Internet and the Web. It began as one of many search engines. It quickly ran away from the pack with its copyrighted PageRank search algorithm which returns superior search results for Web users. It also has developed extensive online advertising services for businesses of all sizes. It’s ability to attract the best and brightest minds in the industry helps make it one of the most successful Web-based businesses ever. Google provides value to the user by using an inexpensive, flexible infrastructure to speed up Web searches and provide its users with a vast array of Web-based services and software tools. Microsoft: Its business model originally focused on the desktop computer running the Windows operating system and Office desktop productivity...
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...In contrast, Microsoft is widely centered in the software support for businesses worldwide. In addition, Microsoft has successfully launched other products and services such as their search engine Bing, mobile phone, and Windows Phone software support, and social media- Skype. Google focuses on innovation practices, most recently, the addition of “Search plus your world” that will enable users to integrate their Google+ account and find friends in their social network. (Google Annual Report 2011) Google is also focusing on innovating practices to enlarge its dormant market share and incorporate “semantic search” a better way to match queries through word association, helping the site better understand the users query. Google also launched Google+ a social network comparative to Facebook. Finally, the Company recently acquired Android under its “Google Mobile”, a base of its mobile operating system. Currently the Android growth has been “impressive. Over 250 Million Android devices have been activated globally” (Google Annual Report 2012) By Contrast, Microsoft has continued to diversify its products for businesses to increase their efficiency and productivity including Windows 7, Office 2010 and Sharepoint. (Microsoft Annual Report 2011) Microsoft also recently launched “Office 365”, a subscription based offering of their cloud services and “Kinect” that increased the gaming features and Xbox 360. To stay in competition with Google, Microsoft launched “Bing” as their search...
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...1. Exective summary This case study discusses the business strategies used by Apple, Microsoft and Google in internet industry。Everyone know the Internet has developed into an enormous information infrastructure. This new economy is driven by a relentless force of technological and conceptual innovations stemming from an innumerable number of parties scattered around the globe. Its speed of change and innovation make it to a highly competitive arena. Apple, Microsoft and Google have been the most successful companies within this arena for a long time. Throughout the previous decades, they have internalized the economic laws and technological characteristics of the Internet in their business thinking. Their strategies and competitive moves did not only form the information economy as we know it today, but do also provide showcase examples of how profitable market positions can be achieved in the Internet. Table of content Introduction My report answers some questions: How did Apple, Microsoft and Google successfully navigate and define the competitive arena of the Internet? Which roles did their unique strengths play for their business strategies? Which specifics of the Internet did they have to account for? Last, how to used 4Ps sustain their competitive advantages within such a hostile environment? Development strateies of Apple, Microsoft and Google Apple was founded in 1976 by Steve Jobs and Steve Wozniak; stressing the importance...
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...channels of retail, digital and live events. The Niche Factory is currently considering a new CRM system. The cloud is driving faster release & upgrade cycles overall. Customers use cloud applications in their everyday lives and those consumer applications typically have rapid response to feedback. The nature of cloud allows companies to be much more responsive giving you the flexibility to push out updates when you need to. (Columbus, 2013) There are a many cloud service companies to consider – you have to make a choice between an established, proven vendor or taking a chance as an early adopter of something new. (Columbus, 2013) In this case, we will look at three established, proven vendors: Google Compute Engine (GCE), Amazon Web Services (AWS), and Microsoft Azure. IaaS Considerations Infrastructure as a Service (IaaS) is a cloud model which allows organizations to outsource computing equipment and resources such as servers, storage, networking as well as services, such as load balancing and content delivery networks. The IaaS provider owns and maintains the equipment while the organization rents out the specific services it needs,...
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...| Office 365 vs. Google Apps | | Nowadays, traditional official environment is not enough for people doing works. People need more flexible time and sites in order to have communication with their colleagues instead of just sitting in the office. With the Informational Technology boost, Microsoft and Google provide their products that change our thinking about working in the corporation, such as new types of handing up work report, updating meeting information and communication with co-workers. Microsoft Office 365, introduced on 2010, is a kind of office software based on cloud and desktop application. It provides anywhere access to emails and calendars, Office Web Apps, instant messaging, conferencing, and file sharing. Its products include Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Lync Online, Office Professional Plus and Office Web Apps. Google Apps, developed in 2006, is a service from Google providing independently customizable versions of several Google products. It has six years history when started by creating Gmail in 2006. Through six years developing, Google Apps has quite strong features by following products: Gmail, Google Apps Sync, Google Calendar, Google Contacts, Google Drive, Google Groups, Google Tasks, Google Voice, and Google+. * Feature Review: Since most of the features are similar in Office 365 and Google Apps, there are still some differences which could affect users experiencing those two...
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...very well structured but has more of a word of mouth type advertising campaign rather than a in your face market like Walmart or Google. Everyday you open Internet Explorer you see Google as the default search engine which is free advertising. Walmart has expanded all over the world so you see one on your drive into work or see the commercials. I don’t see the in your face type campaign with Amazon. They have a solid product and they know it. Sitting at 10% of processing capacity means they are well prepared for momentum which is true to their core competency of being a leading retailer. Often leading retailers exceed capacity and can’t meet customer demands like the wireless cellular networks and the dreaded dead zones. (This is my opinion. Please provide feedback. Dave) o Present areas where Amazon is competing with Google™ and Microsoft®, and whether competition is a wise strategy. -From my research, I broke it down into two main categories. Amazon vs. Google -Amazon is attempting to get into the business services market place that Google is currently working in. ie. Google Check out vs. Amazon Flexible Pay -Google has a successfully running search engine marketing system directing search inquiries while Amazon relies on their incredible size for virtual traffic. Once a customer is on their sight, Amazon is attempting to create a Sub-Google like browser inside their site. -Amazon...
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...Strategic Analysis 1) ROLE OF GOOGLE IN THE GROWTH OF E-COMMEERCE: With the incredible growth of the eCommerce industry, experts around the world are expecting significant change in the future, and companies are taking stock in the market by investing more money than ever before in eCommerce technology. Google Shopping and recent changes to Google Analytics are also affecting retailers and their ability to effectively market their products and services. Google has introduced a new change that will “phase out free clicks on Google Product Search listings.” Once the new program called Google Shopping launches, ecommerce merchants will be required to bid on placement for their products for related search terms in Google. Online retailers will no longer see their listings appear in the comparison shopping service. Instead, this service will be replaced with the Google Shopping program, which will include paid product ad listings. According to Sameer Samat, Google Shopping’s Vice President of Product Management, “Google Shopping will empower businesses of all sizes to compete effectively, and it will help shoppers turn their intentions into actions lightning fast. Today’s changes are a first step toward providing technology, tools, and traffic to help power the retail ecosystem.” Google + has rolled out a new service that will now include local listings and customer reviews. Globally, eCommerce is up by more than 300% in the Middle East, with approximately 70% of transactions completed...
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...the case, Microsoft would have great products.” Steve Jobs, Cnet News. May 10, 2007 1. Patterns in Microsoft’s response to competitive threats and opportunities Standardization and simplification, complementary products, aggressive market penetration strategies (tenacity, deep investments and bundling), aggressive deal making. If I were to quote Microsoft’s best and most genius strategy that allowed them to gain impressive market share and become virtually impregnable in OS and application software market, it would be standardization (=compatibility) and simplification. They made their products easy to use, switch between and upgrade, which saved their clients a good amount of money in training and re-training employees, equipping new sites, etc. They looked past minor competitive losses in favor of bigger gains that would allow them to ultimately win market share, as in the example when they made their Office package available on Mac OS while Lotus and WordPerfect were hesitant to do so, even though Apple had many products competitive to Microsoft offerings. Another winning strategy was to produce complementary products: OS and applications that were perfectly compatible, as well as making these products available for different PCs and operating systems (=Apple) thus making Microsoft products ubiquitous and omnipresent. Impressive profits and large cash account further allowed Microsoft to grow into a monster on the computer software arena. What Microsoft has always...
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...), strategies, operations and innovations of Apple, google and Microsoft. 2. Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings of each firm. 3. What is the significance of mobile apps, app stores and closed vs. open app standards to the success or failure of mobile computing? 4. Which company will prevail in this epic struggle? Justify your answer. In this triangular fight, at one point or another, each firm has allied with one of their two major foes to team up on the third. Two of the firms – google and Apple – are determined to prevent Microsoft from expanding its dominance beyond the PC desktop and onto the new mobile platform. But when it comes to mobile phones and apps, Google and Apple are enemies: both want to dominate the mobile market. Apple and Microsoft are determined to prevent Google from extending beyond its dominance in search and advertising. So Apple and Microsoft are friends. But when it comes to the mobile marketplace for devices and apps, Apple and Microsoft are enemies. Google and Microsoft are just plain enemies in a variety of battles. Google is trying to weaken Microsoft’s PC software dominance and Microsoft is trying to break into the search advertising market with Bing. http://techcrunch.com/2014/04/30/google-takes-on-microsoft-for-productivity-dominance-of-apples-mobile-platform/ http://www.pcworld.com/article/2026541/why-microsoft-must-become-apple-and-google.html http://www.ifb.unisg...
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...Apple V/S Google Apple and Google differ significantly in what they sell (Apple’s innovative products Vs. Google‟s Technological Services) and their revenue generation models (Price discrimination and skimming of Apple vs. Ad based revenue of Google). Hence we are not sure whether we are comparing Apple with apples here! Nevertheless one interesting and meaningful comparison is given by the Market cap of the two technology firms. In May 2010, Apple Inc. reached $222 billion in market cap surpassing Microsoft to become the most valuable technological company in the world. At present the market cap of Apple is even more astonishing at $290* billion in comparison with the $187* billion of Google Inc. and $217* billion of Microsoft Corporation. Yet Google cannot be underestimated with regard to the power it wields on the internet. It saves search queries associated with your Internet Protocol (IP) address for nine months. Thus most of the suggestions Google makes are the ones that you are actually searching for. Similar things could be said about most of the Google ser-vices. Needless to say Google‟s Search algorithm is still one of the best and widely used by all users across the world. But Google has a free to use image because of nature of the open source applications such as Android, Chrome OS, etc. Thus most of its revenues are Ad based and hence does not have the premium pricing ad-vantage of Apple. On the plus side, Google services are extensively used across the globe...
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...Google Vs. Microsoft Google and Microsoft are two powerhouses in the world of information technology. Although Google is considerably younger than Microsoft, it is one of the most successful “dotcoms” in our era. Google has remained successful due to its ability to adapt and influence change. Microsoft has strategies their business around building and integrating computer technology. Google Google’s mission, “Organize the world’s information and make it universally accessible and useful”, speaks for its self. Google’s business model is based on the web. Google’s success has been built around the strength of their search engine. Since their search engine capabilities are one of the strongest on the Internet, it has allowed the business to develop in other directions. Google developed Google Apps, which is a service that allows customization of multiple Google products for a small fee. Google’s main focus is focusing on the consumer and sticking to one product well. Whether its offering the simple search engine or Google maps for directions, their main goal is to service the consumer. Microsoft Microsoft’s business model is built around their windows operations. Microsoft windows and office applications are used on over 90 percent of the world’s computer usage. These applications have lead to the influence of growth and development of the Internet. Microsoft’s business model is to lead consumers to utilize their desktop applications in areas where Google...
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...MICROSOFT SWOT ANALYSIS: STRENGTH: * Brand loyalty * Brand reputation * Easy to use software * Strong distribution channels * Robust financial performance * Acquisition of Skype(1) * No. 1 Operating System on the planet: As of 2012, there are over 1.1 billion computers in the world, and 90% of them use Microsoft Windows. * No. 1 Marketing Campaign of 2012: Ace Metrix has declared Redmond's new “clickaholics” Surface ad as the hands-down most effective Tablet ads of 2012. Having Jessica Alba sport your phone doesn't hurt, either. * No. 1 in the Workplace: Forrester predicts that by 2013, the global enterprise market will be worth $68 billion. The lion's share will go to Microsoft. Microsoft makes in a single quarter what Apple makes in year from business hardware sales and services. * Strong Reputation: Microsoft ranks No. 7 on Forbes's list of the world's most reputable companies, right behind Google (NASDAQ: GOOG) (No. 6) and, yes, even Apple (NASDAQ: AAPL), who came in at No. 5. Microsoft also led Colgate, Nike, Johnson & Johnson, IBM, Michelin,and Samsung. * No. 1 in Gaming: Microsoft's Xbox platform is now the top selling gaming console in the world. * MS Office: 97% market share * Skype: With over 280 million users, Microsoft's Skype service continues to grow rapidly. * Wide Moat, With Fire-Breathing Dragons: Microsoft has over $65 billion in cash, cash equivalents and short-term, highly liquid investments...
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...Market Value 6 3.2 SWOT Analysis for the Technology Sector 7 4. Non-Financial Analysis 8 4.1 Google Inc. 8 4.1.1 Company Profile 8 4.1.2 Strategic Target 8 4.1.3 SWOT Analysis 9 4.1.4 Others 10 4.2 Microsoft Corp. 11 4.2.1 Company Profile 11 4.2.2 Strategic Target 12 4.2.3 SWOT Analysis 13 4.2.4 Others 13 4.3 Amazon.com 14 4.3.1 Company Profile 14 4.3.2 Strategic Target 14 4.3.3 SWOT Analysis 15 4.3.4 Others 15 5. Financial Analysis 16 5.1 Profitability 16 5.1.1 Year-on-Year (YoY) Revenue Distribution 16 5.1.2 Net Income 19 5.1.3 Return on Total Asset (ROTA) 20 5.1.4 Return on Equity (ROE) 21 5.2 Liquidity and Financing 22 5.2.1 Short-Term: Current Ratio 22 5.2.2 Long-Term: Gearing 23 5.3 Shareholder Value 24 5.3.1 Earning Per Share (EPS) 24 5.3.2 Price Earning Ratio (PE Ratio) 25 5.3.3 Dividend Per Share 26 5.4 Risk and Discounting 26 5.4.1 CAPM and NPV on Google Inc. 27 5.4.2 CAPM and NPV on Amazon.com 29 5.4.3 CAPM and NPV on Microsoft Corp. 31 6. Investment Decision and Conclusion 34 6.1 Investment Evaluation’s Matrix 34 6.2 Investment Decision and Conclusion 38 7. References 39 8. Appendix 40 Figures and Tables Figure 51: Amazon YOY Revenue, Cost, and Operating Income 16 Figure 52: Microsoft YOY Revenue, Cost, and Operating Income 17 Figure 53: Google YOY Revenue, Cost, and Operating Income 17 Figure 54: Net Income Comparison 19 Figure 55: ROTA...
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