CASE STUDY CHAPTER 7 – APPLE, GOOGLE AND MICROSOFT BATTLE for your Internet Experience
1. Google’s biggest advantage is the Internet search holding close to 80% of the entire market. Their business model doesn’t depend on the actual products, but rather the service they offer and the profits are mostly generated through advertising.
Apple is the leader in mobile software applications. Apple App Store offers 1.2 million (July 2014) available apps. Their strength is this marketplace and their products that continuously attain all high sales records.
Microsoft, on the other hand, is the leader in PC operating systems holding approximately 90% of this market. Their PC desktops are their main strength and they are looking into expanding onto ...view middle of the document...
Google has a different approach of the mobile platform going for the advertising network. Google also offers the Android operating system for free to manufacturers while Apple charges 30% of all app sales on its App Store.
Microsoft has also tried to establish a cloud and mobile presence with its Office 2013 that operates in the cloud as well as on a desktop. They also launched its Surface tablet in order to compete with Google’s Nexus 7 and Apple’s iPad.
3. The app stores are one of the most significant players in the mobile platform. According to www.statista.com website as of July 2014, Android offers 1.3 million apps, while Apple offers 1.2 and Windows only 300,000. The difference between Apple and Google is that Apple restricts the use of their apps to only Apple products, whether Google offers their Android market to any smartphone manufacturer willing to use it operating system for free. Apple is using a closed app standard while Google is using an open one. The reason why Google is doing this is because its most profitable side is the advertising and more devices are using it more profitable is for Google. Using an open app standard also maximize creativity and allows startups to develop new products and services rapidly and cheaply as they don’t have to pay licensing fees. Apple, on the other hand is using a closed app standard controlling all the features and even rejecting apps. This strategy allows them to control the entire App Store and keep a handle on errors. So far, both systems are successful as they almost share the mobile application market, but in the long run I think that Google’s approach will succeed as we are heading into a world of cooperation and open standard.