Friday, June 03, 2005

Google Vs Microsoft

Here is my take on this interesting topic. I have analysed the situation by taking a neutral stand. I dont have any strong liking or disliking on any of these companies ;)

Google at Present

Google has morphed into a software company and is emerging as a major threat to Microsoft's dominance. Google’s software can be used with any Internet browser to search the web and desktop. Google brands like Gmail, Picassa, Blogger are leaders in email, photo editing, blogging respectively. Moreover they are also free. Google can emerge ultimate software leader with innovations like local-area search complete with maps and satellite photos, ways to search inside a video file, and search designed for cellphones.

Google’s Aggressive Business Activities

Google is inheriting operating system features too, like desktop search. Google's desktop search can locate any program, document, photo, music file, or e-mail on a computer. Google can extend this feature and can build its own operating system or office application like “Google Office”.

Many Microsofties has joined Google creating panic for Microsoft’s management.

Google has innovated online advertising. Its automated system gathers information regarding user's search request and then delivers discrete matching ads alongside the results.

Microsoft’s decision to build Google Killer (SWOT Analysis)

Strengths
1. Windows operating system is the major strength to Microsoft. It can produce superior software applications that function well with its OS.
2. Microsoft has plenty of money to buy the rights to information and content; it also owns powerful digital-rights-management software, which helps copyright holders control who uses their products and how often.

Weakness
1. The effort has taken longer, cost more money, and exposed more big-company problems at Microsoft than anyone imagined.
2. No matter what innovations Microsoft do, Google and Yahoo seem to do better.
3. There's no quick and easy way to lure away Google's online advertisers.

Opportunities
1. Targeted online advertising has indeed become a gold mine. Still in its infancy, it's one of the hottest sectors in high tech, a $5-billion-a-year market growing at some 40% annually.
2. Possibility of integrating search into future versions of Windows and Office

Threats

1. Google’s successful desktop search can trigger many such innovations and can even lead to the creation of Google’s own version of Office applications like Excel, PowerPoint, Word, etc.
2. Any attempt to bundle search with Microsoft products will probably be scrutinized by antitrust regulators. Microsoft cannot undercut the price of Google software to suit its copyright operating system, as Google is already free.