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Presentation Brief
About Google / Microsoft Working Environment Business Model and Strategy B2B Business Solutions Product Strategy SWOT Analysis Googles Advertising Value Chain Study of Porters 5 Forces on Google Brand Value Segmentation-Targeting Strategy Positioning Analysis Competition Analysis / Advantage Google v/s Microsoft
About
Products offering - Search Engine, Cloud computing, Software and Advertising technologies
About
Products Offering Operating Systems, Office Suites, Xbox for Games, Internet Explorer, Search Engine, Mails, Security, Servers, Cloud Storage Device, Visual Studio, Calling Device.
STP
Googles STP
Offers products that generally appeal to a mass market Doesnt matter what you are using the web for Search is the common denominator for everyone; a home-base from which to begin your journey Target web users all over the world Globally present in all the countries. Targets advertisers whose market frequent the internet Can be targeted with precision at a local or worldwide level
Googles STP
The Google company is positioned as:
Solution-centric Innovative Socially responsible Vast networks, deep knowledge
Microsofts - STP
Demographic
Games and Educational softwares for children. Business class softwares for professionals and technical.
Targeting
Large firms, medium and small firms, Schools, colleges, Institutes etc.
Positioning
Price / Discounts : Microsofts latest pricing: Buy office 2007 now; and get office 2010 for free Globally present in all the countries
PEST ANALYSIS
Political
Taxation policy Political stability Pressure from other countries especially USA Restrictions on foreign recruitments
Economical
Fluctuations and unpredictable behaviour of foreign currency Disposal income level of people Exchange rates Tax and import export barriers
Technology
Innnovations related to IT, operating systems Education Living status (tech-force, broad mind) Average population age
Social
Updations done on regular basis Easy accessibility Enhanced security Accessibility of technology to differently capable people
Googles strategy
Primary Strategy
Focus on Search Engine Marketing Googles Ad-Sense and Ad-word helped Google to generate huge revenue from the internet market Unique Page Search Algorithm Robush Data Centers around the world
Secondary Strategy
Focus with innovative product development like Gmail, Mobile Computing, Social Media Growth Strategy Mergers & Acquisitions (Youtube, Android, Motorola)
Microsofts Strategy
Continuing long standing commitment and accessibility research, awareness and innovation. leadership in
Making the computer easier to see, hear and use by building accessibility into Microsoft product. Facilitating the next generation of accessible technology and moving the industry forward with ground breaking technologies.
Building strong, collaborative relationships with a wide range of technology partners and organizations to raise awareness of the importance of accessibility in meeting the technology needs of people with dishabilles.
TRENGTHS
Search engine industry Large cash flow Loyal and satisfied employees Loyal customers Products are very adaptable Pushing societys technology Channels for the phone market Scalability Openness
EAKNESSES
Public perception of Googles practices Non-corporation by foreign governments Decisions being made to progress Google Advertising revenue growth is slowing down
Internal factors
PPORTUNITIES
Secure consumers personal info Resurrect relationship with Chinese market Focus into developing tangible technology Relationship in other websites Gaps in online market offering Future expansion for television Revenue through advertising
Positive
HREATS
Copyright lawsuits/issues Public perception of Google Microsofts growing dislike Continued insistence by some foreign governments Advertising space is becoming more competitive
External factors
Negative
TRENGTHS
Brand name. Skilled manpower. Delivery capability and client satisfaction. Strong financial muscle. Competitive pricing. User friendly softwares
EAKNESSES
Falling sales of Microsoft Dependency on hardware Unsecured OS (as compared to linux) Not much expanded market Expensive software Dependency on other retail outlets
Internal factors
PPORTUNITIES
Expansion in same sector. Enter into new sectors. Increasing number of working age people. Increasing awareness.
HREATS
Piracy. Competition by local market. Entry of big names in Indian market. High exchange rate. Fast changing technology
External factors
Positive
Negative
Business Model
Buying Cycle AIDA Googled:
1. Attention SEARCH
4. Action CLICK/$
2. Interest FIND OK
LEGEND:
Microsoft
Supplier Power
No of players available is Less. Power is high where brand is powerful. Possibility of integrating backwards. Capital requirement. Infrastructure. Government policies. Number of substitute available. Large number of users. Pressure from buyers. Number of substitute available in the market. Buyers propensity. Substitute product quality. Apple, Linux, Intex, Google Others
Buyer Power
Threat of Substitute
Competitive Rivalry
Brand Value
Source: http://tech.fortune.cnn.com/2013/09/30/apple-coke-interbrand
Competition Analysis
Legend:
Google are more like us than anyone weve ever competed with. Bill Gates Microsoft
(2005)
BCG Matrix
Source: http://finance.yahoo.com/news/microsoft-nokia-vs-googlemotorola-085629553.html