Case
study
Chapter
6: Telecommunications, the Internet, and Wireless Technology
1. Compare
the business models and areas of strength of Apple, Google and Microsoft.
The three Internet titans (Google, Microsoft and
Apple) are in an epic struggle to dominate your Internet experience, and caught
in the crossfire are search, music, book, videos, and other media.The business
models of the three firms are very different.
Apple is the leader in the mobile software
application. The most popularity of the App store is IPhone. Apple has gone
into the stance that applications, one of the major earners for tablet and
phone manufacturers, should be device restricted; for example, one application
should be unique to the brand of the device and should be allowed to function
in another device from another separate brand. They even stopped Google in its
plans to allow Google applications to work on Apple products. Thus by doing
this Apple is trying to capitalize on their loyal customer base and create an
Apple weds Apple scenario.
Google has a huge edge in advertising, thanks to its
dominance in Internet search. Microsoft’s offering, Bing, has grown to about 15
percent of the search market, and the rest essentially belongs to Google. It
has a completely opposite stance to what Apple states. Google is the believer
in the concept that in the future the devices used to run the applications and
other internet options should be a fraction of what they are being charged now
and instead the revenues generated should be from the in-app advertisements.
Google offer Android for free to manufacturers of handset that run the
operating system. Via Android, Google hopes to control its own destiny in an
increasing mobile world.
Microsoft is still the leader in PC operating
systems and desktop productivity software, but has failed miserably with
smartphones hardware and software, mobile computing, cloud-based software apps,
and its Internet portal. Even through Microsoft’s Xbox consoles and games are
popular, they contribute less than 5 percent of Microsoft’s revenue. By
integrating the hardware and software deal Microsoft has actually change the
dynamics of the whole market. And this can be problem some for Google and Apple
as they shall have to change their own perspective and outlook towards the
level of competition that they shall have to face in the coming years in mobile
computing.
2. Why
is mobile computing so important to these three firms? Evaluate the mobile
platform offerings to each firm.
The importance of mobile computing lies in the very
fact that is the future of internet technology. Companies need to excel in it
so as to survive and expand in today’s world which is full of competition.Mobile
computing becomes so very important for all the three mentioned firms which are
Apple , Google and Microsoft as it is the future of the internet technology and
for these firms to flourish and expand
they need to be very effective with mobile computing.
The mobile platform that Apple provides with its
products is “iOS”. This mobile platform is the closed platform that is it is
applicable for apple products and only apple apps could work on this. The
latest version which is being offered is the iOS7. It would be upgraded with
200 new features. Some of the remarkable features amongst them are there is an
option over which you can reply later on the calls which you can’t take
immediately. Next, Integration with the Facebook over which you can share all
you iPhone activities.
The mobile platform that Google provides is
“Android”. This mobile platform is a universal platform when compared to the
mobile platform offered by Apple. This is so because majority of the apps could
work on this platform which makes it a platform that is used by many.The latest
version provided by the Android software is the version 4.1 “jelly bean”
(Android, 2012). Some of the notable features of this version are a simple
screen swipe would provide you with search results related to Google. Besides, the
voice recognition tool in this version would rub offline.
Microsoft is entering this market recently by
launching the tablet named “Surface tablet”. The mobile platform that Microsoft
is offering is the Windows Phone 8. This operating system will be compatible
with the laptops and the desktops.Some of the unique features of this operating
system are Microsoft can support dual core chips. Besides, it also can support
multiple screen resolution. Next, it provides advanced map technology.
3. What
is the significance of mobile application, app store, and closed versus open
app standards to the success or failure of mobile computing?
The development of applications and software’s to
match these expectations is a task that all the companies in the fray to be the
leader in the mobile computing market, whether it be Apple, Google, Microsoft
or any other new player, shall have to look into great detail and precision.
The importance of mobile applications can be
justified on this basis itself that Google has based their future growth
prediction on the very same. Right now the scenario for mobile applications is
such that they have are being considered as the future bread and butter of
mobile IT firms. Mobile applications have such a great scope of growth in the
future that they can one day eclipse the sales of the hardware part of mobile
computing and form a major market themselves here players like Google and apple
shall have tough competition even from small fray players if a common platform
for application usage is formed, the very same reason why Apple is resisting
Google’s repeated efforts for a common mobile platform.
According to expert mobile applications are even
today a big part of the on the go access market. Finish mobile giant Nokia too
has a say in the application future as it still has the lion’s share in the
applications that are used in its mobile phones, which in spite of the recent
drop are a very big number. Also applications and app stores are also being
viewed as a source of major entertainment by many users of mobile computing
devices, with games like angry birds and temple run taking the market by storm
it is very evident that applications and app stores are a thing for the future.
4. Which
company and business model do you think will prevail in this epic struggle?
Explain your answer.
Although the market is still relatively young the first mover
advantage is still not with a single competitor. To predict a clear winner in
such a scenario is difficult however there are certain qualities in one of the
players that can make it a winner in this battle of equals.
In my opinion, Google is the search engine giant that has a lot of
positives going for it rather than the negatives. The clear positives that can
become a winner is Google has a well-established name which not a lot of
players can boast of but Google is one of them, although Apple and Microsoft
have chartered territories of their own but Google can fight them out both as
an equal if not better. Besides, the Company has entered into all the three
basic markets of mobile computing including hardware, operating system and the
application stores. Their hardware is something which a few competitors can
best, however the Android operating system has taken the market by storm and
the app store which comes with it is a mean bully in itself.
Although the Google bandwagon is on its way there are certain
roadblocks that it can face that can halt its march and some of them are the
Google brand is big but it still lacks the appeal of an Apple product and this
many say is one of the most major difference between the two. The Android
system although perfected to a large extent still has a few errors in the new
versions that can hamper the growth of the operating system and this where a
competitor like Microsoft can prevail over the Company. Lastly it can be said
that Google’s move towards a common mobile application platform can itself
backfire and could increase competition from local app players which can affect
the overall profitability from this step.
5. What
difference would it makes to a business or to an individual consumer if Apple,
Google, or Microsoft dominated the Internet experience? Explain your answer.
Consumers would be forced to buy only one product and use only one
service. They would create a monopoly and the positive would be they would
create a standard. This would affect quality; prices would be as high as
possible because they would have no competition. No
competition means nobody could force a monopolist from the outside to improve
products, diversify rang or products and lower price. Right now it is too early
to tell who would dominate the internet experience but it is good to have
competition than just one market leader.