Case Study 10: Apple, Google, and Microsoft Battle for your Internet Experience
Question 1:
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.
Apple
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Google
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Microsoft
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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 cell
phone ever.
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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.
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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.
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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
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Google
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Microsoft
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Uses a closed proprietary system and apps that only provide through
iTunes
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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.
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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.
Question 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.
Question 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.
Question 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.
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