Osmangoniblogs

Case 10: Apple, Google, and Microsoft Battle for your Internet
Experience
Md Osman Goni 6 years ago

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Q.1: Compare the business models and areas of strength

of Apple, Google, and Microsoft.
Although they have different business models and strategies, Apple, Google and Microsoft
are three major companies who seek to dominate the Internet user’s experience. They come
to the platform with their own proprietary strengths.   In looking at business models, Apple’s
business model focuses on the consumer and bringing them a personalized web experience
through their hardware (iPads, iPhones, iPods and iMacs), their two major OS systems: Mac
OS X and iOS, and through the INTERNET.   Although their model limits what type of
software customers can access, they offer over 250,000 Apps through their iOS App store.

Microsoft

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.
Apple

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

Google’s business model focuses 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.

Q.2: Why is mobile computing so important to these three

firms? Evaluate the mobile platform offerings of each
firm.
Mobile Computing is so important to these firms because of the fundamental paradigm
shift.   The environment is a $400 billion e-commerce marketplace and the applications used
enrich the experience of using a mobile device. Mobile computing is the most important and
critical business segment of both Google and Apple. Apple has gained various advantages in
the industry in terms of mobile supremacy which tends to serve it well.

People now want to use their mobile phone in the most sophisticate ways and above all
through speech recognition. The most of the new phones allow us to use the internet, read
email, listen to music and etc. The innovations are to speak to our phone and be able to use it
as a personal assistant. The three competitors are fighting hard to give us the best model and
platform.

 Apple: Uses a closed proprietary system and apps that only provide through iTunes

Google: aggressively following the eyeballs. It has introduced the Android mobile operating
system for a host of non-Apple devices. Open non-proprietary system that allows users to use
any apps through any resources unlike iTunes.
Microsoft: trying to partner with Apple and make Bing the default search engine on both
the iPhone and Apple’s Web browser. That would provide Microsoft with a much needed
boost to its fledgling search service.

The company has faced enormous success due to all its products such as iPhone, iMac, and
iPad. The company has a steadily growing loyal customer base which will definitely buy the
future offerings of products by the company. Apple also hopes iPad to be just as successful as
iPhone in the industry. Moreover, Apple is undergoing a deal with Bing in order to make it is
the default search engine on the Apple’s web browser and on iPhone.

Q 3: What is the significance of applications and Apps

stores to the success and failures of mobile computing?
The success of the mobile computing relies heavily upon the app stores and applications of
the mobile. That is, in just four years, mobile application stores almost the money they get.
In this market, Apple is the one that dominates. The new ecosystem based mobile
applications open opportunities for the carriers, who could develop their own apps stores
based on user information according to the consumer’s data usage.

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 applications will derive a significant competitive
advantage over rival companies. Apple makes 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. However, app developers have
complained that making money is too difficult. Apple has blocked some apps from its mobile
devices. Apple claimed it violated user privacy. Google has worked very hard to increase the
number of 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.

Q.4 which company and business model do you believe

will prevail in this epic struggle? Explain your answer.
Google has the major share of the advertising market; however Microsoft and Apple will be
a major threat to them. As long as there is potential money at stake, Microsoft Corporation
and Apple will stop at nothing to overturn and destroy its competitive advantage. Apple has