Microsoft vs Google: The Clash of Unequals?



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Code : COM0060

Year :
2006

Industry : Information Technology and IT Enabled Services

Region : USA

Teaching Note:Available

Structured Assignment :Available

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Introduction:It was in December 2003, BillGates (Gates),Chairman and Chief Software Architect of Microsoft Corporation (Microsoft), was startled while surfing Google's website. Google Inc. (Google), the internet search engine company had posted job openings which matched the job specifications of Microsoft's core business, software development. Immediately, he sent an email to all his top executives to keep a vigil on Google. With its origin in Stanford University's dorm room, Google had eventually become the number one search engine and was diversifying its businesses into software development, posing a direct challenge to Microsoft. Moreover, over hundred employees of Microsoft had quit the company to join Google, includingsome of the top executives. To add to Microsoft's woes, Google entered into collaboration with Sun Microsystems, Microsoft's major competitor, on various projects. All these events resulted in Microsoft concentrating its efforts to combat Google. In 2005, Microsoft reorganized its business structure from seven business units to three units. Analysts see this as amove to make the company more agile and competitive to curb the challenge from Google. Plagued with problems like the antitrust lawsuits and open source code operating system, Microsoft had a new challenge in the form of Google.

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