Sample Case Analysis – Google
22-BA-5080-002
Summer Semester, 2013

SUMMARY

One of the major drivers of future success for both Google and Microsoft is the ability of both companies to use software applications to “drive eyeballs” to advertisers. Each company is positioned differently in this regard. Microsoft has a sizable, mature installed base of app users, but the company’s business model is currently focused on selling these apps as a consumer product to users, rather than on advertising. Google, by contrast, has been focused for some time on utilizing its industry-leading search engine and a growing, yet less mature, base of other apps to drive eyeballs to advertisers. Both Google and Microsoft have to reckon with major …show more content…

* Arbitrary assumption: Education professionals = 50% faculty, 50% staff. * Airline industry cost of sales = 0.4% of gross revenues.

1.

Positioning Maps

Mobile platform market share
Installed base of personal productivity apps
Low
Low
High
High
Google
Microsoft
Mobile platform market share
Installed base of personal productivity apps
Low
Low
High
High
Google
Microsoft

Comments: * Apple may move away from Google to Bing in future launches of the iPhone mobile platform, helping to boost Microsoft upwards on the Y axis. * Motorola boost in battery power for tablets may expand usage of Google apps, helping to boost Google outwards on the X axis. *

Operations Tools

Driving Forces

Driving Force | Comments | Open Source Code | Open-source code allows app developers to share code with other developers, and offer apps to end consumers, basically for free. This supports the business model of a company like Google, which benefits from the proliferation of