Case 10: Apple, Google,
and Microsoft Battle for
your Internet Experience
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
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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.
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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 had a significant lead in mobile computing for several
years. However, as more companies, Google, Microsoft and others,
continue to expand into the arena, its lead will be threatened.
Google still reins web-based services through their search engine.
But like Steve Job’s idea, who dreams and keep continuing to
developing new technology will become top.
Q.5: What difference would it make
to business or individual consumer if
Apple, Google, or Microsoft demands
the internet experience? Explain
your answer.
Apple is leading apps rather than Google. But Google is catching up
through the Android operation system and by encouraging app
developer. If there is useful or good app that consumer demands
and right choice of choosing which platform to go for, that will be
success for next few years. Switching costs play into both scenarios,
not just in terms of phone purchases but the price of apps. Once a
user purchases and adjusts to using a certain platform it’s difficult
and expensive to switch to a whole different system.
