You are on page 1of 31

Google v/s Microsoft

Clash of Innovation v/s Invention

Innovation the use of new idea or method

Invention - The creation of the idea or method itself

Presentation Brief
About Google / Microsoft Working Environment Business Model and Strategy B2B Business Solutions Product Strategy SWOT Analysis Googles Advertising Value Chain Study of Porters 5 Forces on Google Brand Value Segmentation-Targeting Strategy Positioning Analysis Competition Analysis / Advantage Google v/s Microsoft

About

Products offering - Search Engine, Cloud computing, Software and Advertising technologies

About

Products Offering Operating Systems, Office Suites, Xbox for Games, Internet Explorer, Search Engine, Mails, Security, Servers, Cloud Storage Device, Visual Studio, Calling Device.

STP

Googles STP
Offers products that generally appeal to a mass market Doesnt matter what you are using the web for Search is the common denominator for everyone; a home-base from which to begin your journey Target web users all over the world Globally present in all the countries. Targets advertisers whose market frequent the internet Can be targeted with precision at a local or worldwide level

Googles STP
The Google company is positioned as:
Solution-centric Innovative Socially responsible Vast networks, deep knowledge

Google Advertising network


Advertiser-friendly Traceable metrics Google Analytics Credible, tasteful advertising Rewarding for all parties (advertiser, host & viewer)

Microsofts - STP
Demographic
Games and Educational softwares for children. Business class softwares for professionals and technical.

Targeting
Large firms, medium and small firms, Schools, colleges, Institutes etc.

Positioning
Price / Discounts : Microsofts latest pricing: Buy office 2007 now; and get office 2010 for free Globally present in all the countries

PEST ANALYSIS

Political
Taxation policy Political stability Pressure from other countries especially USA Restrictions on foreign recruitments

Economical
Fluctuations and unpredictable behaviour of foreign currency Disposal income level of people Exchange rates Tax and import export barriers

Technology
Innnovations related to IT, operating systems Education Living status (tech-force, broad mind) Average population age

Social
Updations done on regular basis Easy accessibility Enhanced security Accessibility of technology to differently capable people

Googles strategy
Primary Strategy
Focus on Search Engine Marketing Googles Ad-Sense and Ad-word helped Google to generate huge revenue from the internet market Unique Page Search Algorithm Robush Data Centers around the world

Secondary Strategy
Focus with innovative product development like Gmail, Mobile Computing, Social Media Growth Strategy Mergers & Acquisitions (Youtube, Android, Motorola)

Microsofts Strategy
Continuing long standing commitment and accessibility research, awareness and innovation. leadership in

Making the computer easier to see, hear and use by building accessibility into Microsoft product. Facilitating the next generation of accessible technology and moving the industry forward with ground breaking technologies.

Building strong, collaborative relationships with a wide range of technology partners and organizations to raise awareness of the importance of accessibility in meeting the technology needs of people with dishabilles.

Google - SWOT Analysis

TRENGTHS

Search engine industry Large cash flow Loyal and satisfied employees Loyal customers Products are very adaptable Pushing societys technology Channels for the phone market Scalability Openness

EAKNESSES

Public perception of Googles practices Non-corporation by foreign governments Decisions being made to progress Google Advertising revenue growth is slowing down

Internal factors

PPORTUNITIES

Secure consumers personal info Resurrect relationship with Chinese market Focus into developing tangible technology Relationship in other websites Gaps in online market offering Future expansion for television Revenue through advertising
Positive

HREATS

Copyright lawsuits/issues Public perception of Google Microsofts growing dislike Continued insistence by some foreign governments Advertising space is becoming more competitive

External factors

Negative

Microsoft - SWOT Analysis

TRENGTHS

Brand name. Skilled manpower. Delivery capability and client satisfaction. Strong financial muscle. Competitive pricing. User friendly softwares

EAKNESSES

Falling sales of Microsoft Dependency on hardware Unsecured OS (as compared to linux) Not much expanded market Expensive software Dependency on other retail outlets

Internal factors

PPORTUNITIES

Expansion in same sector. Enter into new sectors. Increasing number of working age people. Increasing awareness.

HREATS

Piracy. Competition by local market. Entry of big names in Indian market. High exchange rate. Fast changing technology

External factors

Positive

Negative

Business Model
Buying Cycle AIDA Googled:

1. Attention SEARCH

4. Action CLICK/$

2. Interest FIND OK

3. Desire ADS Source: Google Adwords

Google

LEGEND:

Microsoft
Supplier Power
No of players available is Less. Power is high where brand is powerful. Possibility of integrating backwards. Capital requirement. Infrastructure. Government policies. Number of substitute available. Large number of users. Pressure from buyers. Number of substitute available in the market. Buyers propensity. Substitute product quality. Apple, Linux, Intex, Google Others

Threat of New Entry

Buyer Power

Threat of Substitute

Competitive Rivalry

Advertising Value Chain

Googles Advertising Value Chain

Brand Value

Source: http://tech.fortune.cnn.com/2013/09/30/apple-coke-interbrand

Google Brand Value


Simplicity - Google home page Ease of use Logical navigational system and well design of menu elements User focused Focus on the user and else will follow Innovative Continuous innovation Personalisation Everyone wants to be special
Source: http://tech.fortune.cnn.com/2013/09/30/apple-coke-interbrand

Competition Analysis
Legend:

Google are more like us than anyone weve ever competed with. Bill Gates Microsoft
(2005)

BCG Matrix

Why does Microsoft fear Google?


Googles ambition isnt limited to in browser web services, but extends to any online or offline application market.

Mobile Handset Deal


Sept 2013, Microsoft has decided to buy the Nokia Inc. handset business for $7.17 billion. In 2011, Google Inc. bought Motorola Mobility for $12.5 billion Which company got the better deal? Microsoft or Nokia?

Source: http://finance.yahoo.com/news/microsoft-nokia-vs-googlemotorola-085629553.html