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 driving forces impacting research & development for apps, such as the proliferation of third-party app development firms, open source code, and exponential advances in hardware capabilities. Both companies also have to reckon with major driving forces impacting the future of advertising, such as changing consumer demographics, a splintered media landscape, and the lingering global recession. The impact of these driving forces is particularly evident in an analysis of certain apps in each company’s pipeline – such as Google’s Docs personal productivity apps and Microsoft’s Bing search engine.
Paragraph describing details of Google business model / Microsoft business model
Paragraph on driving forces impacting apps / driving forces impacting online advertising
Paragraph on Google Docs / Microsoft Bing
Concluding paragraph
ANALYSES
Management Tools
Business Model
| Google | Microsoft | Value Proposition | Attract visitors with search engine and apps, then sell eyeballs. Targeted advertising. Robust information on potential customers, low CPM for companies which are successful with AdWords. | Personal productivity. Robust application features which allow users to produce professional and personal