Business Strategies: Microsoft Vs Google
Here is an essay I recently completed.
Only had 240 words to cover a very deep case study.
Hope it stimulates some critical business thinking…
Microsoft Corporation Inc USA (Nasdaq:MSFT) 240 words
Microsoft is a world leader in software, computing and IT innovation with a market capitalisation of US$276 billion (http://finance.yahoo.com/q?s=msft, August 2007).
Microsoft’s has gone from a marketing concept business in its early years, focusing on customer needs and wants, into a monopoly positioned, selling business model (Kotler, Adam, Brown and Armstrong 2006) implementing aggressive, large scale selling and promotion of products and anti competitive behavior (<http://news.bbc.co.uk/1/hi/business/652150.stm>, August 2007) as its key means of revenue growth.
What about search?
A fledgling company called Google sprang up under the giant’s nose and has grown into a formidable US$162 billion market capitalized IT company in under 5 years with multi billion dollar profits and double digit year on year earnings growth (http://finance.yahoo.com/q?s=goog, August 2007).
Google dominates in what could have been a key market for Microsoft (Vise 2005) had it the systems in place to more accurately identify new business segments as the development of web browsing applications into search and paid search applications are a natural evolution of services (Vise 2005).
Microsoft needs to change its marketing management philosophy to allow it to exploit new market segments, as in its early days, and emerging long tail revenue opportunities (Anderson 2006).
Microsoft appears to be getting back to basics as their new suite of products are said to be more user friendly, more secure (<http://www.microsoft.com/windows/products/winfamily/ie/default.mspx >, August 2007) and the company is aggressively investing, developing and marketing its own search, paid search, digital market places (Anderson 2006) and digital advertising products (<http://advertising.microsoft.com/home/home >, August 2007) to re-invigorate company revenues.
We will be able to measure their success in the next company reporting season.
List of References
Anderson, C, 2006, The Long Tail, Random House, United Kingdom, pp. 50, 70, 193.
Vise, David A. , 2005, The Google Story, Macmillan, London, pp. 4, 8, 12, 29.
Google corporate web site, viewed August 2007, <www.google.com>.
Kotler, P, Adam, S, Brown, L & Armstrong, G 2006, Principles of Marketing, 3rd edn, Pearson Education, Australia, p. 18-24.
Microsoft corporate web site, viewed August 2007, <www.microsoft.com>.
Microsoft court case: What’s it all about?, 2002, viewed August 2007, <http://news.bbc.co.uk/1/hi/business/652150.stm>.
Microsoft Digital Advertising Systems, viewed August 2007, <http://advertising.microsoft.com/home/home >.
Yahoo Finance, viewed August 2007, <http://finance.yahoo.com/q?s=goog>.
Yahoo Finance, viewed August 2007, <http://finance.yahoo.com/q?s=msft>.