Question 1:Define and compare the business strategies and business models of Google and Microsoft? Answer: Google Inc. is an American public corporation doing business from advertising related to its internet search, online mapping office productivity, e-mail, video sharing services, social networking along with selling advertising free versions of the related technologies. The business organizations were established in 1998 with a mission to organize the world's information and make it universally accessible and useful. The firm is executing its business in a competitive environment with its chief competitor Microsoft in the field of software technologies and portal services.
The company is competing with the rivals through the strategy of innovative services like those that advertisements associated with the search key words, partnership with the new partners floating of shares in the share market, acquisition of new businesses like Google has acquired a company called Key Hole, Inc. and You Tube. The company is facing pressures from the substitute products. For example, the company has initially started with the POP account and later on, the same has now will converted into Google Apps the company is updating through offering new services as to manage the changes in the software market.
The products as offered as on economical basis. The company has used the bargaining power of the suppliers as in favor of the Google. Initially the company has started its business with an amount of $1.1 million and in the year 2008, the company has earned a net income of $ 4.277 billion with a growth of 6% as compared to that of the previous year. The company has reached an agreement to acquire double click as equivalent to $3.1, which shows the strength of the company in short span of five years.
The company has also utilized the power of buyers as in favor of the company, for example the company has acquired You Tube for $ 1.6 billion in the year 2006. Google is a dynamic organization and is recognized as the most visited website in the internet, which shows the strength of the company. All the new entrants in the field of information technology and computer soft ware have to face the reality as Google a leading business organization at the world over(1). Microsoft Corporation is a multinational computer technology corporation that deals with the development, manufacturing, licensing and support to a wide range of computer software products as computing devices.
The company is offering a wide range of products relating to Microsoft windows, the Microsoft office suit of productivity software operating systems, and Google labs and tools. The company was initially started in 1975 and through its operations; the company has gained a unique name in the field of information technology. The company is facing a number of competitors in the field of software and computer programming.
Major rival of the Microsoft is Google. The company is dealing with the rival through the introduction of a set of products to the customers and in the shape of Microsoft windows. The company has faced a number of law suites during its history, for example, the European Union has imposed a fine of $1.4 billion as to cover dissatisfaction and lack of compliance with the March 2004 judgment.