Shahid Ali (803-MBA-2011)

GOOGLE VERSUS MICROSOFT: CLASH OF THE TECHNOLOGY TITANS CASE STUDY

Q#1. Define and compare the business strategies and business models of Google and

Microsoft.

Google – Effective in its PageRank search algorithm and online advertising services, along

with ability to attract the best and brightest minds in the industry and company’s extensive

infrastructure allows it to offer the fastest search speeds and variety of web-based products.

Believing that the maturation of the internet will allow more and more computing tasks to be

performed via the web, on computers sitting in data centers rather than a desktop. Google is

heading towards cloud computing.

Microsoft – strength is Windows operating system and office desktop productivity

application, which are used by 500 million people worldwide. Its goal is to embrace the

internet while persuading customers to retain the desktop as focal point for computing tasks.

Microsoft is still maintaining its desktop computing space. It is also trying to compete with

Google in web search market by trying to collaborate with yahoo and aiming to launch

Microsoft-yahoo.

Q#2. Has the Internet taken over the PC desktop as the center of the action? Why or

why not?

No the Internet hasn’t taken over the PC desktop as the center of action, not completely

because PC has its own prominence. It just gives users option to go towards the new model.

However there are many advantages and disadvantage in computing tasks be performed via

the web. It basically depends upon the user requirements that will determine the selection

from both of the ways of doing different tasks.

Q#3. Why did Microsoft attempt to acquire Yahoo!? How did it affect its business

model? Do you believe this was a good move?

Microsoft attempted to acquire Yahoo! to bolster its internet presence. With this acquisition,

it will bring Microsoft more internet search market share since yahoo has over 20 percent and

Microsoft at under 10 percent. The merger will at least help Microsoft in gaining 30%

internet search market share but still Microsoft will be lacking far behind from the market

share of Google. The intent of Microsoft was not only to bolster its internet presence but also

to end the threat of an advertising deal between yahoo and Google. I think it was good move

Shahid Ali (803-MBA-2011)

for Microsoft to start competing Google in internet search market and in web based

application developing

Q#4. What is the significance of Google apps to Google’s future success?

The centerpiece of Google’s efforts is Google apps which includes series of web based

applications like Gmail, instant messaging, calendar, word processing, spreadsheet etc.

Google believes that most user doesn’t need advance features of Microsoft office package so

why they should bear the cost of whole package. Google is providing the basic features in its

applications at very low cost per person creating perception in the minds of customer to pay

for what they use instead of paying for the whole packaging. Hence giving them more value

from the competitive product. But the problem with the philosophy is that most of the

customers are concerned about their data security and if Google will get success in addressing

the concerns it can get lot of customers of Microsoft hence giving them healthiest

competition against Desktop PC computing and moving customer to web based computing

which is the one of the motive of the Google.

Q#5. Would you use Google Apps instead of Microsoft Office applications for

computing tasks why or why not?

At this point of time it is difficult for me to switch from desktop computing to web based

computing for the basic service which Microsoft is providing through its software which are

available free of cost in our country. The main reason is non availability of internet

connection in Pakistan everywhere and every time.

Q#6. Which company and business model do you believe will prevail in this epic

struggle? Justify your answer.

It is difficult to assess the future of these companies at this point of time because both of the

companies are competing aggressively with each other. Operating system is basic

requirement for each and every computer in which Microsoft has 90 percent market share and

Google has 60% market share in internet searching and web based computing. It is difficult to

say that which company will prevail in this epic struggle as Microsoft is also moving towards

web based computing. I think web based computing model will prevail in this epic struggle.

It is most convincing and relatively good approach for doing computing. The only need is to

address the certain issues like data security, internet connection etc. I think web based

computing is the future of computing industry.