APPLE,GOOGLE AND MICROSOFT BATTLE FOR YOUR INTERNET EXPERIENCE
INTRODUCTION Apple
Google
Microsoft
Market
$230
$140 bn
$210 bn
Revenue
$42.9 bn
$23.7 bn
$58.4 bn
Core Bussiness
UX
Advertising
software
Hardware
-iphone -iPAD
- Phone - Google TV
- Mobile computing - Smart phone
Software
-navigator
- Google chrome
- Microsoft office
Content
- Music - ibooks
Google vs Apple
Apple vs Microsoft
• Friends against Microsoft PC • Enemy for mobile phone and apps • Plain enemies in a variety of battles
• Friends against google in search and ads • Enemies in mobile market place • Plain enemies in a variety of battles
Q1: Compare the business model (BM) and area of strength of Apple, Google and Microsoft
Apple’s Business Model • Apple’s business model mainly focuses on mobile devices; such as iPhones and iPads which account for 52% of apples profits.
• The strengths for Apple are mobile devices, such as iPhone and tablets. These devices combine and contribute 52% of apples business. They already have a head start on the mobile phone industry where they have over 250,000 applications. Apple controls 27% of the mobile market and the iPhone is the highest grossing cellphone ever.
Google’s Business Model • Google’s bas of the market from the mobile, advertising and operating systems.
• The strengths for Google are that they dominate in advertising with their search engine. And their Android OS controls 41% of the mobile market share. This mobile market is constantly growing 3 times faster than the iPhone market share. “They bought Android Inc. to enter the mobile market.” also bought out Motorola Inc. for 12.5 billion.
Microsoft’s Business Model • Microsoft’s business model is operating systems which 95%of all computers use worldwide.
• The strengths for Microsoft are that they are still the leader in PC operating systems and desktop productivity software. But has failed miserably with regards towards smartphone hardware and software, mobile computing, cloud-based software apps; its internet portal.
Q2:Why is mobile computing so important to these 3 firms? Evaluate the mobile platform offerings of each firm
• Apple and google wants to dominate the mobile market. By Apple’s iOS and Google’s Android are both the key dominant players in the mobile computing market. • When the internet exploded in size and popularity, it made increase in Apple’s revenue.
• Apple has loyal user base that has steadily grown and is very likely to buy future products offerings. Google is a strong as the size of its advertising network. When google acquired Android, it was adding features to Android that Apples’s offering lacked, such as the ability to run multiple apps at once.
Apple :iOS • iOS 5 is the latest version of the world’s most advanced mobile operating system, includes over 200 new user features, and an updated software development kit with over 1,500 new application programming interface and powerful new development tools.
Google : Android • Android 4.0 is the latest version of the Android platform for phones. It builds on the things people love most about Android easy multitasking, rich notifications, customizable home screen, resizable widgets and deep interactivity and adds powerful new ways of communicating and sharing.
Microsoft: Windows phone • Windows phone 7 is the latest version and where Microsoft offers a new user interface. This features its design language called Metro, integrates the operating system with thirty party services and other Microsoft services and set minimum requirements for the hardware on which it runs. Windows phone is primarily aimed at he consumer market rather than the enterprise market.
Q3: What is significance of mobile application, app stores, and closed vs. open app standards to the success or failure of mobile computing
• Apps greatly enrich the experience of using a mobile device, and without them, the predictions for the future of mobile internet would not be nearly as bright. Whoever creates the most appealing set of devices and application will derive a significant competitive advantage over rival companies. •
Apple make money on each app sold through its app store. That’s worth billions of dollars to the company. Even if an app is free, apple still has an advantage because users must visit Apple’s App store and the company is betting consumers will buy something else. Other apps or entertainment service while visiting the store. However, app developers have complained that making money is too difficult. Apple has blocked some apps from its mobile devices, namely Google’s voice mail management program, Google voice. Apple claimed it violated user privacy.
•
Apps for the Android system used on non-Apple devices are available from many different sources. Google has worked very hard to increase the number off apps available for Droid-based mobile devices by encouraging developers to increase the number of apps. Google also makes money by embedding advertising in some of the apps used on Droid-based devices.
Q4: Which company and business model do you think will prevail in this epic struggle? Explain your answers
• I think Google will prevail in this epic struggle with its market from the mobile, advertising and operating systems. Google has a huge edge in advertising with its dominance in Internet search. Google`s Android OS is one of the dominant players in the mobile computing market and it controls 41% of the mobile market share. • This mobile market is constantly growing 3 times faster than the iPhone market share and it will only increase in size and scope going forward in the future. • Google has acted swiftly to enter the battle for mobile supremacy because more and more people are likely to switch to mobile computing as their primary method of using the Internet. • They bought Android Inc. to enter the mobile market and also bought out Motorola Inc. for 12.5 billion. Buying Motorola`s phone business does more than just give Google patents but it also gives Google the ability to make its own cell phones and tablet devices which would be its most aggressive move. Google envisions a future where mobile phones cost a fraction of what they do today or even free by requiring only the advertising revenue generated by the devices to turn a profit.
Q5: What difference would it make to a business or to an individual consumer if Apple, Google or Microsoft dominated the Internet experience? Explain your answers
• In the current struggle, three firms are trying to make to dominate the customer experience on the internet. Each firm brings certain strength and weakness to fairy. It’s too early to tell if a single firm will “win” or it all three can survive the contest for the customer internet experience, and in early contest it was typically a single firm that rode the crest of new technology to become the dominant player and also can make domain of the internet router market. Example, include IBM’s dominance of the main frame market.
