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A Comparative Study of the Business Models and Strengths of Apple, Google and Microsoft

UserMark time02 December,2014

Business and marketing students are well aware of telecommunications, internet and wireless technology and its effect on business. It is an obvious fact that the three internet giants — Google, Apple and Microsoft — dominate the market of telecommunications, internet and wireless technology. These multinational corporations are applying everything to attract your attention. An epic struggle has unleashed among these three tech-behemoths to influence your internet experience.

A Comparative Study of the Business Models

An overview of Apple, Microsoft and Google

A basic comparison of market shares of Apple Google and Microsoft

 AppleMicrosoftGoogle
Market Capital$230bn$210bn$140bn
Revenues$42.9bn$58.4bn$23.7bn
Core BusinessUXSoftwareAdvertising

Let us now understand their business model in details.

Apple

Apple is considered as the leader of mobile software application. It has adopted a resolution to create a very strong hardware base for the internet future, laying emphasis on the hardware that facilitates mobile computing. The recent business model of apple follows three broad industry categories —

  • Software Engineering: Apple has set the technological pace for functionality and end-user experience. With OS X, Apple will emerge as a faster and better software company at a frantic pace.
  • Hardware Manufacturing: Apple design and creative innovations attract the copycats to be inspired by its technological prowess and innovative design. In hardware manufacturing, cost of ownership is lower, built-in functionality is greater.
  • Retail: Apple as the direct employee-staff for each site ensured that the technology of multicolor iMac is introduced properly. Apple has moved to the high traffic upscale malls to bring the product directly to the users.

Click Here for Complete : Apple Pestle Analysis 

Google

Google dominates the advertising world, courtesy its internet search. The six basic elements of Google business model are —

  • Searching service

  1. Easy use for its customers
  2. Better experience and lessons
  3. Enhance the user’s ability
  • Advertising service

  1. Accurate specifications and layouts of advertising
  2. Self controlled advertising service program
  3. Help companies to reach their potential customers
  • Network-platform strategy

  1. Product mix and sales
  2. Open platform interfaces and information
  3. Integrating functions with external suppliers
  • Contemporary value network

  1. Develop good network trust relations
  2. Establish alliances based on complementary abilities
  3. Promotion of commercial complementary products
  • Co-operation value Network

  1. Build co-operation relations
  2. Ensure the neutral standard
  • Core technology

  1. Powerful computing technology
  2. Analyze technology in term of content

Microsoft

Microsoft is acknowledged as a leader in PC operating system and desktop productivity software, but failed with smart phone hardware and software. Hence, currently it is in the process of revamping its business model. Ninety five per cent of its current revenue comes from Windows, Office and Network software.

Strengths of Apple, Google and Microsoft 

           Strengths Apple Google Microsoft
Apple already has head start business in mobile phone industry with 250,000 applications.It controls 27% market share of mobile market, and highest grossing cellphone company ever.Google’s Android OS controls 41 percent of the mobile market share that is growing three times faster than iPhone market share.It is the most popular search engine.Operates through regional subsidiaries

 

 

Microsoft is the world’s largest software company

 

 

Why do students need help in writing on business models of Apple, Google and Microsoft?

Students may have to deal with more complex topics than this on subjects related marketing, business and telemarketing in the near future. Students will be further expected to produce nice writing assignments on these subjects. Hence, they need to have a clear idea of the three internet giants and how they develop their marketing strategy.

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