IntroductionThe major and emergent initiatives that are taken up by top managers in an organisation involve strategic management. These enable the firm utilize its resources effectively and also be capable of enhancing its performance both in the internal environment and external environment. The organisation specifies its mission, vision and objectives and also develops various policies which enable the firm attain a competitive position in the market. These actions therefore enable a company gains an increase in market share therefore beating competition in the market (Barney, 2001). External analysis- The type of industryFor the past few years, Google and Microsoft have been joined into various market strategies for example by merging or using acquisition with other firms in order to gains a competitive position in the market.
Hamel and Prahalad (2000) state that this increase in competition linked to innovation and strategies set by Google and Microsoft has facilitated the growth of mobile devices. This growth has also initiated evolving of wireless device where by various applications are now used to improve utilization. This has therefore led to the increase in competition between the two companies.
Other global competitors such as Sony and Nokia have also been affected by the rivalry between Google and Microsoft providers. This study examines the companies competing in the wireless devices product category as well as their applications. The situation is then analysed in order to know how these companies achieve their competitive advantage in the global market. General environment and competitive environmentRecently, Google has introduced an operating system which competes with Microsoft Windows. Microsoft has also introduced an Office 10 application which is a free online version and is to compete with the Goggles web based application.
This increased competition between these firms has initiated major strategies in order to beat the competition for example Microsoft revealed Bing which is its new search engine and is to capture the Google’s market share. Ryan (2009) describes that Microsoft aims at making the search engine their competitive advantage. These evidences show that there is an aggressive technical battle between the two companies which also involves seeking government regulations against the other company. The competition however is not aimed at seeing one company close down but the fight is to see which company manages to become the king of technology.
This is because both companies have different competitive advantage and this is what makes them operative. Google’s competitive advantage is by the small advertisements which appear next to search results or at the edges of the web page. Ryan (2009) show that in 2008 for example Google earned about 22 billion dollars and 97 percent of this amount was got from Google advertisements. On the other hand, Microsoft earns its revenue from selling Microsoft Word and PowerPoint which amount to about 20 billion dollars annually and makes 10 billion dollars profit.
Microsoft also achieves its market position by sale of operating systems such as Microsoft XP, Vista and Windows mobile. The company is therefore able to use these advantages as its strength and opportunity of beating its competitors.