APPLE, GOOGLE, AND MICROSOFT BATTLE FOR YOUR INTERNET EXPERIENCE

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’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’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 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.

 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.

 What is the significance of mobile applications, app stores, and closed vs. open app standards to the success or failure 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.

 

4.  Which company and business model do you think 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.

 

5.   What difference would it make to a business or to an individual consumer if Apple, Google, or Microsoft dominated 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.