Case: Apple, Google, and Microsoft Battle for your Internet Experience

Q1: Compare the business models and areas of strength of Apple, Google, and Microsoft.

Microsoft’s business model is operating systems which 95%of all computers use worldwide. Apple’s business model mainly focuses on mobile devices; such as iPhones and iPads which account for 52% of apples profits. As for Google’s bas of the market from the mobile, advertising and operating systems. 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.

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.

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 important to Microsoft, Apple and Google because by 2012 the mobile market will be 200 billion dollars, with a 200% increase every 2.5 years. Therefore, it has been projected that by 2015 the mobile market will be worth 400 billion dollars. It is important for these firms because they want to maximize profit and market share by being aware of changing trends. 70% of the mobile market is dominated by Apple and Google while Microsoft failed to put its name in the mobile market with less than 3%.

Apple offers you over 250,000 applications, which has a loyal user base that has steadily grown and is very likely to buy future product offerings. Apple provides the most applications out of the three firm, Apple has been accredited as the dominate leader of mobile devices (iPhones and iPads). Microsoft offers Xbox live service on your phone, which has dramatically been a failure along with applications that it offers. Microsoft is not key figure in the mobile market yet.

Google’s Android offers you over 200,000 applications and is expanding rapidly. It is predicted that by the end of fourth quarter of 2011Android will surpass Apple’s market of applications by 175,000 applications. This will make Google the premiere provider for applications depending on the users’ preference.

Q3: What is the significance of mobile application, app stores, and closed versus open app standards to the success or failure of mobile computing?

Any computer software that performs specific tasks is called Applications (Bovee 2012, p 256). They can range from large business computer programs such as “Sun Systems” for processing large accounting problems to a simple program that can be used to order something as simple as a pizza, in today’s world applications have become a part and parcel of the day today.

Today’s mobile and tablet users are becoming more and more inclined towards a product which has more number of application than the other product option. Although it can be said that such a thing has happened because of the fact that the devices today have become so specified that a certain range of products shall have the same specs regardless of their make. This change can be determined as a major shift in the consumer psyche and even the big three have not underestimated this change.

The development of applications and software’s to match these expectations is a task that all the companies in the fray to be the leader in the mobile computing market, wither it be Apple, Google, Microsoft or any other new player, shall have to look into great detail and precision.

The importance of mobile applications can be justified on this basis itself that Google has based their future growth prediction on the very same. Mobile applications have such a great scope of growth in the future that they can one day eclipse the sales of the hardware part of mobile computing and form a major market themselves here players like Google and apple shall have tough competition even from small fray players if a common platform for application usage is formed, the very same reason why Apple is resisting Google’s repeated efforts for a common mobile platform.

According to experts (Kevin, Timothy et.al) mobile applications are even today a big part of the on the go access market. Finish mobile giant Nokia too has a say in the application future as it still has the lion’s share in the applications that are used in its mobile phones, which in spite of the recent drop are a very big number. Applications and app stores are also being viewed as a source of major entertainment by many users of mobile computing devices, with games like angry birds and temple run taking the market by storm it is very evident that applications and app stores are a thing for the future.

Lastly it can be said that although all three firms have great opportunity in the market which is still young and in its infancy, the first mover shall have very definitive advantage to take control of this veritable goldmine.

Q4: Which company and business model do you think will prevail in this epic struggle? Explain your answer.

Google:  The search engine giant has a lot of positives going for it rather than the negatives. The clear positives that can make it a winner are:

A well-established name is something which not a lot of players can boast of but Google is one of them, although Apple and Microsoft have chartered territories of their own but Google can fight them out both as an equal if not better. The Company has entered into all the three basic markets of mobile computing including hardware, operating system and the application stores. Their hardware is something which a few competitors can best , however the Android operating system has taken the market by storm and the app store which comes with it is a mean bully in itself (Android 2012)

Google has also bet on of the most time relevant feature of the mobile computing market, the App store, and this is the biggest advantage which the Google business model gives it and makes it the prime contender for the number one position. With hundreds of applications already online and hundreds more in the development stage Google has started to take a sort of lead on the other players in the race to be number one. And this may not be decisive right now but with Google’s recent acquisition of application developers and their heavy R&D expenditure on the same, it is just a matter of time before it will take out companies like Apple and Microsoft. (Android 2012)

Although the Google bandwagon is on its way there are certain roadblocks that it can face that can halt its march and some of them are:

1.      The Google brand is big but it still lacks the appeal of an Apple product and this many say is one of the most major difference between the two.

2.      The Android system although perfected to a large extent still has a few errors in the new versions that can hamper the growth of the operating system and this where a competitor like Microsoft can prevail over the Company

3.      Lastly it can be said that Google’s move towards a common mobile application platform can itself backfire and could increase competition from local app players which can affect the overall profitability from this step.

Thus it can be said that Google does have a lot of positives that can help it in the market and if it can take care of the negatives and maybe tweak the one platform stance, it can just pull ahead of Apple and Microsoft in this battle of the behemoths.

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 answer.

Consumers would be forced to buy only one product and use only one service. They would create a monopoly and the positive would be they would create a standard. This would affect quality; prices would be as high as possible because they would have no competition. No competition means nobody could force a monopolist from the outside to improve products, diversify rang or products and lower price. Right now it is too early to tell who would dominate the internet experience but it is good to have competition than just one market leader.