A Wide Range of Google Products - Essay Example

Demand and Supply for Google and Microsoft Company Google Product Line Google offers a range of products. Google Chrome, Google Docs, Google Scholar, Google Translator, and other web technology products and services are offered by the firm (Google, n.d.). Product Description and Usage Google Chrome is mainly used as a search engine enabling the internet users to search all types of fully and partially available information in the shape of books, magazines, journals, newspapers, blogs and other pertinent required information. In addition, Google Docs provides an opportunity to open a MS Word document while using Google mail services. Demand Factors A number of factors determine the demand for Google products. For example, for a thesis writer, important information about how to write a thesis statement and ways to access the required information for completing the thesis work are some of the factors creating demand for the Google products. In addition, it is important to mention that demand factors vary from consumer to consumer because every internet user has different expectations from the Google services and products as well. As a result, no single demand factor can be termed as a unique demand factor for Google products. Supply Factors According to say’s law, supply creates its own demand (Daly and Farley, 2004.p.26). Based on this law, it can be deduced that Google products create their own demand which subsequently convince firm to provide a steady supply of Google products. For example, before the launch of Google glasses, there was no demand for nor was supply of Google glasses. However, after its entry into markets, its demand is rising along with the supply. Substitutes Google has various products including Google Chrome. The substitute for Google Chrome is Internet Explorer which is a product of Microsoft owned by Bill Gates. Complements To operate either Google Chrome or Internet Explorer, use of computer and the latest mobile phones is highly essential. Without using computer or mobile phone, it is not possible to operate these products. Consequently, computer and mobile phone are known as complements for Google Chrome. Elastic or Inelastic Demand in the Short Run Most of the Google products have elastic demand. For example, Google Chrome, Google Docs and Google Scholar are available besides having substitutes, such as Internet Explorer. Elastic or Inelastic Demand in the Long Run It is expected that the demand for Google Chrome, Google Docs, and Google Scholar will largely remain elastic in the long run although some price is paid by consumers in the shape of the Internet, mobile devices and computer usage as well. However, these costs are indirect and they do not affect the elasticity of Google products, such as Google Chrome, Google Docs and Google Scholar as well. Capital or labor-intensive Till this point of time, Google has been a capital-intensive firm largely relying and using the latest technology methods and means for developing and upgrading its current products and services. Technology Importance Google is a technology-based firm. It mainly uses technology for carrying out its routine business functions in which its employs different cost-effective methods for cost minimization and profit maximization. Without the use and application of technology, it is almost impossible for Google to operate or produce goods or services or provide services to Google consumers. Market Structure and Attributes Google operates in the oligopoly market structure. Oligopoly is defined as a market structure in which following attributes are commonly found: few sellers, homogenous or differentiated products and strong market entry barrier (Tucker, 2010. p.261). In the technology industry, a few firms such as Google and Microsoft exist and compete; simultaneously, they produce identical products such as Google Chrome and Internet Explorer respectively. As they operate in high-technology industry, it is very challenging for a new firm to enter into this market. Long term Prospects Google has better long prospects. The use of technology has almost penetrated into every business activity and has become an essential and important source for reducing cost and improving productivity as well. Based on this rationale, it can be deduced that Google products and services will largely remain in demand for coming many years. Company 2: Microsoft Product Line Microsoft produces various products: windows (different versions), Internet Explorer (various versions), Bing, Microsoft Office (various Versions), hardware and multimedia and so on (Microsoft, 2014). Product Description and Usage Windows are mostly used in computers for enabling computers to work smoothly whereas Internet Explorer is a search engine facilitating web users to search different types of information, databases and other activities. Demand Factors For each Microsoft product, different demand factors can be identified. For example, to write an official examination report for school students, Microsoft Word, Microsoft Excel and Microsoft PowerPoint can be used. Similarly, for deterring a virus attack on computer, windows 7 or 8 can be used for increasing data safety and security. Supply Factors Similar to the supply factors mentioned for Google, the same say’s law is relevant for Microsoft as well. As Microsoft is a technology firm, it mainly produces new technology gadgets and devices and launches them into market. Before introduction to market, supply of such products remains largely unfound. With the passage of time after introducing a new product into market, the launched product gains currency and consumers become aware of its significance. Subsequently, the product becomes a part of daily life and that determines the supply of technology based products and services. Substitutes Microsoft is the main competitor of Google. Consequently, many products of Google are substitutes for Microsoft products. For example, for Microsoft’s Internet Explorer, Google Chrome is substitute. Complements Mobile phones and computers are main complements for Microsoft products. For example, to run a computer, Microsoft’s windows are used and similarly for writing an application, Microsoft’s MS Office is required through which different applications are made. Elastic or Inelastic Demand in the Short Run Currently, Windows and its different versions have elastic demand. And it is expected that this demand elasticity will continue until the price of windows is increased beyond the prices of substitutes. In addition, other products of Microsoft will also remain elastic as well in both long and short run. Capital or labor-intensive Microsoft is a capital-intensive firm in which technology and technology related equipments are mainly used. At Microsoft, the work of labor is comparatively smaller than the use of capital because the firm produces different versions of softwares and its latest versions as well. And for developing the modern version, the latest technology is required. Technology Importance Without the use of technology, Microsoft will not be able to produce its goods and services. For producing different Microsoft products, the firm mainly relies on the use of different types of technology. For example, research and development department carries out research process in which the next version of current Windows is experimented and this experimentation process is primarily carried out through the different applications of technology equipments and methods. Market Structure and Attributes Microsoft provides goods and services in an oligopoly market. In this type of market structure, only few sellers exist in market with the differentiated or homogenous products. For example, Microsoft produces the different versions of Internet Explorer whereas Google offers Google Chrome. Both products are identical and serve the same purpose for the web users. Long term Prospects It is expected that the demand for Microsoft products especially Windows and its different versions will be required by the consumers. And this future demand is mainly caused by the fact that many current users considerably rely on the quality and durability of Microsoft products and services as well. Consequently, it can be extracted that the long term prospects of Microsoft are promising for the firm. References Daly, H.E. & Farley, J. (2004). Ecological Economics: Principles and Applications. Washington: Island Press. Google, (n.d.). About Google Products. Google. Retrieved: http://www.google.com.pk/intl/en/about/products/ Microsoft, (2014). All Products. Microsoft. Retrieved: http://support.microsoft.com/AllProducts?ln=en-us Tucker, I.B. (2010). Microeconomics for Today. 6th edn. Ohio, OH: South-Western Cengage Read More