Competitive Strategies Case Study

Microsoft vs Google in 2005

Abstract:
In 2005, Google is emerging as a major threat to Microsoft's dominance. Google has beaten Microsoft to launch successful innovations like local-area search complete with maps and satellite photos, ways to search inside a video file, and search designed for mobile phones. Google has emerged as a new kind of foe for Microsoft as it gains the ability to attack the latter’s core business. Google’s search lead also looks pretty unassailable. Microsoft has supported the launch of its search-related advertising business in March 2005 with a $150 million ad campaign and scores of other promotions. But the effort has generated little buzz, and Microsoft’s global market share, at about 13% of search requests, remains small. Microsoft has the option of increasing its market share either by acquiring AOL or entering into a partnership with AOL, though Google is doing its best to thwart Microsoft. Coveted talent from academia, startups, and venerable tech companies that a decade ago flocked to Microsoft now seems more attracted to Google in the mid-2000s. Microsoft has lost several top minds to Google since 2003.

Pedagogical Objectives:

• The case can be used to do a SWOT analysis of both Microsoft and Google and discuss their growth strategy.

Keywords : Chris Payne; Netscape; Competitive Strategies Case Study; MSN; Software; Competition

Contents : 
The Battle Over Search
The Battle over online advertising revenue
The Battle over Human Resources
Understanding A Search Engine
Google’s Financial Results
Google’s Financials
The Google website in India