VS

All you need to know about it!

GOOGLE….

Founded by Larry Page and Sergey Brin on September, 4 1998.

Initially started as web search engine.

Gradually diversified into other areas.

Now offers various products and services.

Known for its informal corporate culture.

No.1 in best companies to work at as per Fortune magazine.

Growth through a series of new product developments, acquisitions, and partnerships.

Its key to growth – “Innovation”

Most powerful Brand in the world as per fortune magazine & Most visited website on internet.

MICROSOFT…..

Founded by Bill Gates and Paul Allen on April,4 1975.

Initially sold BASIC interpreters and then came to Operating System MS-DOS in 1980’s.

Now into Windows series of OS and other hardware products.

Monopolistic behavior in past.

PRODUCTS

Google Google Search Gmail Picasa Youtube Chrome Orkut Android Google Earth Google desktop and the list continues……

MICROSOFT

Softwares and Operating Systems Microsoft Windows Microsoft Office Microsoft Servers Windows Developer Tools Microsoft Expression Business Software

Entertainment X-Box 360

Hardware

CORE COMPETENCY

Google is the market leader in search engines (70% market share) followed by Yahoo!

97% of its revenues ($ 5.5 bn*) comes from advertising

o Whereas

o Microsoft is the market leader in Operating System and Office Software.

o It generates most of the revenues ($60 bn*) by these softwares.

o * For 2008

TODAY’S SCENARIO The two most powerful companies in digital

technology

Openly invading each other’s most lucrative markets

Google has entered into office productivity software and computer operating systems, which Microsoft makes.

Microsoft has invaded the domain of Internet search, which Google dominates.

Most of the products made by Google (except search engine) give losses but still it does so deliberately

Why?

To keep Microsoft on its toes…….

PRODUCT COMPARISON

PowerPoint Google Presentations work only with an Internet

connection. Whereas Microsoft presentations can work on plane

Google Presentations can be edited at the same time, from different computers.

Whereas Microsoft presentations cannot do so.

WHY DID GOOGLE DO SO……

Despite having collaboration with Firefox it launched Chrome

MARKETING STRATEGY

Microsoft Strengthen your client relationships through

regular communication.

Build credibility and trust in your technology consulting services value.

Uncover unmet needs, new business and consulting sales opportunities.

Meet new prospects and clients through online marketing, advertising and referrals.

SO WHAT DOES IT ACTUALLY DO

GTM- Going to market.

A web page or web site that differentiates its business.

Regular Mail and/or e-Newsletter

communications that spike ideas.

Persistent Online Marketing with realistic goals suited to a budget

Google Avoided traditional Marketing

Relied upon Public Relations Business to Business online Advertising Direct mail

Google developing OS(Chrome)

Features Lightweight

suitable for small laptops and hand held devices

Boots faster

cheap

GOOGLE'S STRENGTH

20,000 strong workforceAgileweb search and advertising

MICROSOFT'S STRENGTH

70,000 strong workforce Operating System Pioneer Office tools indispensable Huge Profit margin

Deep pocket to support any contingency ubiquity of Office prominence of Windows Businesses prefer Office Almost all third party systems based around

Windows

MICROSOFT CAME UP WITH BING SEARCH ENGINE

Captured 7% market Good customer experienceorganizes its results in terms of

relevant groups rather than a series of links

anticipate a person’s actual interests. Thus, a search for “cheap air fares to London” would also return hotels, restaurants, shops and theatre tickets in broadly the same price bracket

COMPETITIVE STRATEGY

GOOGLE

• Google docs and spread sheet made free• Giving a taste of its office like tools to

consumers• Free tables, spreadsheet hugely popular• Building a platform• Long term strategy : making these tools

indispensable• Goes with its strategy of a new full fledged

OS

MICROSOFT

Well entrenched in OS marketOffice products sole earnerGoogle giving sleepless nightsCame up with “bing” and new

version of internet explorerBing captured 8 % market in short

time

CHALLENGES FOR BOTH

Both are wary of each other Microsoft fears Google OS Google fears Microsoft’s search Engines Both are innovation driven Growing demand for computer applications

provide huge opportunity for both of them

THE BIGGEST IRONY

• Most of the Google’s applications run on Microsoft’s operating system

• Most of the search results of Google lead to pages made in Microsoft office

FUTURE POSSIBLITY

What if someday Microsoft OS stops supporting Google’s applications(Google will make losses in hundreds of millions everyday)

Google being kept at toe and forced to think about its own OS

Microsoft has a history of lawsuits( always gets around the rules and patents)

Google comparatively small – has less resources

FUTURE POSSIBILITY

Microsoft fears Google foray in Operating System business

Microsoft wary of Google docs Google a big player in advertisement Google relatively more agile than Microsoft Monopoly of Microsoft under threat

WHAT IS THE IMPLICATION OF THIS RIVALRY ?

IMPLICATIONS OF THIS RIVALRY FOR CONSUMERS

• Consumers better off• Innovation at its best• Price war good for everyone• Consumers get a taste of free software, for

e.g. Bing, Google Docs• No monopoly

IMPLICATIONS FOR GOOGLE AND MICROSOFT

• Internecine war, bleeding both• Engenders feeling of insecurity• Promotes speculation• Good for the consumers in short run, but not

in the long run