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By designing strategies that enhanced further applications through the PageRank search algorithm, in concurrent with online advertising services and employing highly competent, qualified and professionalized experts in the industry, Google has managed to be the leader in the technology industry. On the other hand, Microsoft’s business model and strategies focused initially on the desktop computer with the applications provided by Windows operating system and Office desktop productivity programs.
It is continually seeking innovative strategies that would enhance further applications of current core competencies, while trying to expand applications in the internet. (2) Has the Internet taken over the PC desktop as the center of the action? Why or why not? The Internet has continued to find ways and means to take over the PC desktop as the center of the action, specifically through Google’s cloud computing. Plummer (2009) defines cloud computing as “a style of Computing where scalable and elastic IT capabilities are provided as a service to multiple customers using Internet technologies” (par. 3). . 289). For consumers without internet connections and are apprehensive to expand applications due to security reasons were appeased through Google’s emphasis on the ubiquitous characteristic of the Internet, as well as the increasing proliferation of Wi-Fi and broadband connections.
However, users of PC desktop, particularly businesses and consumers who have been accustomed to Office and Windows applications aver that the wide range of applications provided by the PC desktop are firmly entrenched and innovative Internet applications would not abruptly shift their loyalty to these models. (3) Why did Microsoft attempt to acquire Yahoo!? How did it affect its business model? Do you believe this was a good move? As any organization’s reason for acquisition, Microsoft’s attempt to acquire Yahoo!
was due to prospects of increasing its market share in the technology industry by combining Yahoo!’s second line leadership. As emphasized in the case facts “Microsoft wanted not only to bolster its Internet presence but also to end the threat of an advertising deal between Google and Yahoo!” (p. 290). The move manifested an attempt of Microsoft to divert from its business model of confining to desktop computers by purchasing an organization with an antithetical business model focusing on the Internet and the search engine.
Rather than going through the intricate details of learning the trades of the internet business model, Microsoft’s attempt could facilitate entering the search engine model through Yahoo!, deemed to be an expert in the field. Taking the decision in perspective, Microsoft’s attempt to acquire, despite being unsuccessful, was still a good move given the potentials and prospects that the strategy offers.
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