Google, Microsoft, Apple and Amazon
Object : Financial analysis - Key analysis of the competitive advantages for future lead 19/02/10
Author : Samuel MORILLON, Chief Operating Officer Cybion S.A. - MBA Insead, Engineer. In less than one decade, the ITs business has spread on the worldwide mainstream demand. Handsets, multimedia gaming platforms, Internet take in average more than 2 hours per day per customer in western 1 countries . In this new business consisting in providing both hardware and contents for customers communications, searchs and leisures, new names such as Facebook, Amazon, eBay, Skype, Yahoo or Google have occured. These new companies challenge already existing firms such as Microsoft, IBM, HP or Apple. The purpose of this document is to study the financial statements from key IT firms to estimate potential trends. Four companies are studied, respectively Microsoft, Google, Apple and Amazon.
Introduction The IT market for consumers can be structured in two main segments respectively hardwares and contents. If hardwares still requires payments when contents can be obtained either for free or competitive prices, standards supports connexions between the different brands. These recent easy interactions between all the IT tools accelerate the technological and behavior current convergence. Google has based its financial success on one specific step of the value chain: its ability to provide 2 accurate data for free. It represent more than 60% of the Internet connection worldwide . Google has acheived in 2009 a turnover of 21,795 billion USD mostly based on its connected dominant position in online advertising. The company faces now a growth challenge and focuses on vertical integration with handsets and OS. This integration pushed Google in frontal competition with historic and new business actors : Apple, Microsoft and Amazon.
Draft #1 - Search engines market shares worldwide (Source: