Google, Apple, and Facebook Battlefor Your InternetExperienceCASE STUDY#2Three I
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Google, Apple, and Facebook Battlefor Your InternetExperienceCASE STUDY#2Three Internet titans –Google,Apple, and Facebook –are in an epic struggleto dominateyou Internet experience,and caught in the crossfire are search, music, video, and other media alongwith the devices you use for all of these things, cloud computing, and a hostof other issue that are likelycentral to yourlife. Mobile devices with advanced functionalityand ubiquitous Internet access are rapidly overtaking traditional desktopmachinesas themost popularform of computing. Today,people spend more than half theirtime online using mobiledevices that take advantage of a growingcloud of computing capacity. It’s no surprise, then, that today’s tech titansare aggressivelybattling for control of this brave new mobileworld. Apple, which started as a personal computer company, quickly expanded into software and consumer electronics. Since upending the music industry with its MP3 player, the iPod, and the iTunes digital music service, Apple took mobilecomputing by storm with the iPhone, iPod Touch, and iPad. Now Apple wants to be the computing platform of choice for the Internet. Apple is the leader in mobile software applications, thanks to the popularityof the App Store, withmore than 2 million apps for mobile for mobile and tablet devices. Applicationsgreatly enrich the experience of usinga mobiledevice, and whoever creates the most appealing set of devices and applications will derive a significantcompetitive advantage over rival companies. Apps are the new equivalentof the traditional browser.Apple thrives on its legacy of innovation. In 2011, it unveiled the potentially market-disrupting Siri (Speech Interpretation and RecognitionInterface (, a combinationsearch/navigation tool and personal assistant.Siri promisespersonalizedrecommendations that improve as it gainsuser familiarity –all from a verbal command. Google counteredby quicklyreleasing its own AI tool, Google Now.Apple faces strong competition for its phones and tabletsboth in the United Statesand in developing marketslike China from inexpensive Chinesesmartphones and from Samsung Androidphones that have larger screens and lower prices. iPhones sales have started to slow, but Apple is not counting on hardware devices alone forfuture growth. Services have always played a large part in the Apple ecosystem, and they have emerged as a major revenue source. Apple has more than 1 billion active devices in circulation,creating a huge installed base of users willing to purchase servicesand a source of new revenue streams. Apple Pay, now availablein more than 10 millionlocations around the world, has been adding 1 million new users per week. Four monthsafter the Apple Musicservice started collecting revenue, it had more than 10 million subscribers, adding $1.2 billion to Apple’sannual bottom line. Revenue from the App Store is skyrocketing. In the two weeks ending January 3, 2016, customers spend more than $1.1 billion on apps and in-app purchases. According to CEO Tim Cook, Apple has become one of the largest service businesses in the world. This service-driven strategy is not without worry. Both Google and Facebook offer stiff competition in the services area. Apple’s Siri may be good for setting an alarm or making a phone call, but she can’t carry on a conversationor execute complex tasks across many apps and servicesthe way her rivals can. Within Facebook Messenger, you can send money to a friend, order an Uber ride, or obtain customerservice fromairlines like United and Delta. Google’s Allo messaging app for iOS and Androidwill enableusers to chat with an assistant to have it perform taskssuch as getting the news, finding out travel times –just about anythingyou could searchfor on the web. It can even suggest responses or web searches while you’re in conversations with other humans. Google continuesto be the world’sleading search engine, accounting for three-quarters of the world’sweb searches. About 90 percent of Google’s revenuecomes from ads, most of that on its search engine. Google dominate onlineadvertising. However,Google is slippingin its position as the gateway to the Internet. New search start-ups focus on actions and apps insteadof the web. Apple has also becomea mobile search competitor. Is iOSmobileoperating systemsoftware givesiPhone and iPad users the abilityuse Apple’s own search engine for searches of music,apps, and local services,bypassingGoogle.In 2005, Google had purchased the Androidopen source mobile operating system to compete in mobile computing. Googleprovides Android at no cost to smartphone manufacturers, generatingrevenue indirectly through app purchases and advertising. Many differentmanufacturers have adoptedAndroidas a standard. In contrast, Apple allows only its own devices to use it proprietary operating system, and all the apps it sells can run only on Apple products.Androidis deployedon 76 percent of smartphonesworldwide, is the most commonoperating system for tablets, and runs on watches, car dashboards, and TVs –more than 4,000 distinct devices. Google wants to extend Androidto as many devices as possible. Google’s Android mobileoperating system is expected to gaineven more market share in thecoming yearswhich could be problematicfor Apple as it tries to maintain customerloyalty and keep software developers focused on theiOS platform. Whoever has the dominant smartphoneoperatingsystem will have controloverthe apps wheresmartphones usersspend most of theirtime and built-in channels for servingads to mobile devices. Although Google search technology can’t easily navigate the mobile apps where users are spending most of theirtime, Google is starting to index the content inside mobile apps and provide links pointing to that content featured in Google’s searchresultson smartphones. Since about half of Google searches are for mobile devices, the companyrevisedits search algorithms to add “mobile friendliness”to the 200 or so factors it uses to rank websites on is search engine. This favorssitesthat look good on smartphonescreens. The cost-per-click paid for mobileads has trailed desktop ads. Googleinstituted a design change tomerge PC ads and mobileads and present a cleaner mobile search page. Much of Google’s efforts to make its search and relatedservices more powerful and user-friendly in the years ahead are based on thecompany’s investments in artificialintelligence and machine learning. These technologiesalready have been implemented in applications such as voice search, Google Translate,and spamfiltering. The goalis to evolve search into more of a smart assistancecapability, where users will be able to get help from Google based on context, situation, and needs. Allo is a smart messaging app that can learn your textingpatterns over time to make conversationsmore expressive and productive. It suggestsautomatic replies to incoming messages, and you can get suggestions and even book a restaurant reservationwithout leaving the chat. Google assistantis meant to provide a continuing, conversationaldialoguebetween users and the search engine. Google is always looking for new ways to connect more people to the Internet, including fleets of little satellites, solar-powered drones that would fly around the world, and balloonsthat float high into the stratosphere, beaming the Internet to those below. Such devices in the sky will help Google spread the Internet to the roughly 4 billion people in undeveloped areas who currently lack Internet access. The more peoplewho are connected directly to Google, the more ads it can show them. Facebook is the world’s largest social networking service, with 1.65 billion monthly active users. People use Facebook to stay connected with theirfriends and family and to express what matters most to them. Facebook Platform enables developers to build applications and website that integrate with Facebookto reach its globalnetwork of users and to buildpersonalized and socialproducts. Facebook has persistentlyworked on ways to convert its popularityand trove of user data into advertising dollars, withthe expectationthat these dollarswill increasingly come from mobilesmartphones and tablets. On an average day, about 989 million people aroundthe world log on to Facebook using mobile devices. Facebookads allow companies to target its users basedon theirreal identities and expressedinterests rather than educated guessesderived from web-browsing habits and other online behavior. Mobile advertising accounts for about 75 percent of Facebook’srevenue, withmany of those ads highly targetedby age, gender, and other demographics. Facebookis now a seriouscompetitor to Google in the mobile ad market and is even trying to compete with emergingmobile platform, havingpurchasedOculus VR Inc., a maker of virtualreality goggles, for $2 billion. InMarch 2013, Facebook overhauled its home page to increase the size of both photos and links and allow users to create topical streams. This move gives advertisers more opportunities and more informationwithwhich to target markets. A “personalizednewspaper”with, for example, an op-ed feed featuring followed commentary pages, a sports section tailored to preferred events and teams, and a hometown news feed will swell Facebook’s database with useful tidbits. Facebookalso introduceda mobileapplication suite to replace the typicalsmartphone home screen. Facebook Home is an interface running on top of the Androidoperating system that replaces the smartphone’s typicalcover screen with Facebookconnect,such as photos, messages,and statusupdates. Homestill provides accessto apps on thephone, but the experienceiscentered aroundFacebook. About the same time, Facebook launched a new search tool to challenge Google’s dominance of search. Facebook Search (formerly Graph Search) mines Facebook’s vastrepository of user data and deliversresults based on social signals, such as Facebook“likes,”and friend recommendations. It’s a more “social”way of searching than Google. Although Facebook search isnot in the same leagueas Google, it offers more precisedata on its users, such as gender, age, marital status, and interests. Facebook’s share of worldwide digital advertising revenue has been growing. Facebook CEO Mark Zuckerberg is convinced that social networking is the ideal way to use the web and to consume all of the other content people might desire, including news and video. That makes it an ideal marketing platform for companies. But he also knows that Facebook can’t achieve long-term growth and prosperity based on social networking alone. Duringthe past few years Facebook has movedinto virtualreality, messaging, video, and more. Facebookis challengingYouTube as the premier destination for personal videos, and it is making its messages “smarter”bydeployingchatbots. Chatbots are stripped-down software agents that understand what you type or say and respondby answering questions or executing tasks, and they run in the background of Facebook’s Messenger service. Zuckerberg has said that he intendsto help bring the next billionpeopleonlineby attracting users in developing countrieswith affordable web connectivity. Facebookhas launchedseveralservices in emerging markets, such as the Free Basics Internet service designed to get peopleonline so they can exploreweb applicationincludingits socialnetwork, Facebook wants to beamthe Internet to underserved areas through the use of drones and satellitesalong with other technologies. Zuckerberg thinks that Facebook could eventually be an Internet service provider to underserved areas.If Facebook can match Google on this front and success in making itself synonymous with mobile access, the company could very well compete for global advertising dominance. Case Study Questions
1.Compare the business models and core competencies of Google, Apple, and Facebook
2.Why is mobile computing so important to these three firms?Evaluate the nonstrategic each firm.
3.What is the significance of search to the success of failure of mobile computing? How have Apple and Facebook attempted to compete with Google? Will their strategies succeed?
4.Which company and business model do you think is most likely to dominate the Internet, and why?
5.What difference would it make to a business or to an individual consumer if Apple,Google, or Facebook dominated the Internet experience?Explain your answer.
Explanation / Answer
1.Compare the business models and core competencies of Google, Apple, and Facebook?
Google
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How does this company called google actually make their money?
The brand google is the baddest and biggest advertising company in the world there is.
To throw some proven stasctics; about 96.6% of the actual revenue is produced by just advertising.
Last year alone, google reported that they received more than $28 billion just for advertisement.
Google is a godhead when it comes to the internet.
Google Maps, Chrome, Location Tracker, Smart TV’s, and the most popular of all Google Search.
Googles business model as a whole makes them money by selling ads on all the free Internet services it provides to the entire world.
Apple
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Although google has revolutionized the Internet usability,
let’s take a deeper look into apple and how they are not too far behind in the technology world.
Apple has been busy conducting its own revolution with innovative products like the IPod, IPhone and IPad.
Apple’s business model is grounded upon the foundation of just the device, sells itself. “Integrated model”.
Yes! Apple definitely has the popular software and for sure the applications.
However, the majority of their revenue is generated from their from scratch well-designed and innovative devices.
They both have their differences, but the both of them of very profitable.
Facebook
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Facebook is the greatest world leading Social Networking Site.
The mission of Facebook is to make the world a more open, social and more connected with the people that are the closet to you.
Facebook helps users stay connected with family, old classmates, job opportunities, and colleagues new and old.
It helps discover hot topics and what is going on the world on an updated minute bases.
It encourages and helps people to express themselves from sharing their opinions about
different trending topics to sharing recipes, ideas, videos and photos. Facebook is free of charge and provides numerous products.
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2.Why is mobile computing so important to these three firms?Evaluate the nonstrategic each firm?
Mobile computing consist in doing activities which involve internet without being fixed to a particular place but at the discretion of the users.
This features provides a very large flexibility, portability and efficiency on the same time,
providing the future of the internet technology, a domain with high competition.
That’s why for these 3 firms, mobile computingis very important,
as a good mobile computing strategy can increase the revenue of profit forevery company.
Google, Apple and Facebook especially have implemented excellent strategies related to mobile users,
as all of them proved to be more focused on user accessibility features for their customers
to improve the intimacy between customer and the company.
Google’s mobile strategy is based on advertising that allows companies to post
their products and services advertisement on Google which provides Android at no
cost for the Google, Apple, and Facebook Struggle for your Internet Experience Case Study 5entire smart phones manufacturers.
Android is a free open source operating systems for mobile phones.
Also Google have now its own devices, like Apple, called Nexus 7 Tablet and they also owns
YouTube and also a very useful app: Google Maps on mobile phones. These are very used and highly liked by users.
In order to compete with Facebook, Google introduceGoogle Plus and marketed Twitter as a social media network.
Apple is the pioneer in the mobile industry. Mobile computing was actually started with iPhone, iPod and iTunes touch.
As Google provides Play Store, Apple provides its usersApps Store.
However, compared with Android, the Apple’s operating system, IoS, is more complicated, less user friendly and highly restrictive to their users.
Meanwhile Facebook has a dedicated app for smartphones, both available on AppsStore
and Play Store providing mobile advertisement on this page. The Facebook’s userinterface displays
messages and photos from Facebook users. It also have a Graph search allowing users to search for friends.
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3.What is the significance of search to the success of failure of mobile computing?
How have Apple and Facebook attempted to compete with Google? Will their strategies succeed?
Mobile computing is about easy access, no matter where you are, important features like searching.
Even if you search for a restaurant or for a location, map or a picture you think about Google.
Google, through its PageRank indexing technology, shows that is the winner from the start the search contest.
However, as Facebook’s strategy aims to be in everything, it arranged for a partnership with Bing already.
This shows off links that your friends liked; Facebook’s Search could go even deeper,
sorting the web according to your social interactions and it would use everything it knows about you
and your queries in a way that Google can't group. If you type in "jobs" and Facebook search would know
you are looking for news on theApple founder and not employment as it knows you have a job and how often you go there.
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4.Which company and business model do you think is most likely to dominate the Internet, and why?
In my opinion, I always see the necessity of Google presence on the internet.
It is obvious since Google captures a major market share. The more Google invests in their engine, the better service users experience.
I find the competition over Facebook model and Apple’s products to be more intense.
Public has raised concerns about side negative effect of social online network over social communication in reallife.
Apple’s products rely heavily on innovation. Though I believe Facebook and Apple will continue to lead their market,
to compare those three models, I find that Google’s business model to be most sustainable and will dominate the Internet.
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5.What difference would it make to a business or to an individual consumer if Apple,Google, or Facebook
dominated the Internet experience?Explain your answer.
If one of three firms dominated the internet experiences, the market would not have enough competition to drive users’ satisfaction up.
Each of them is dominating one segment of the whole internet experience.
Facing competition is what motivates them for creativity and innovation.
Even if one day, three of them decided to merge into one big firm,
the internet experience would eventually go down and no longer be as good as it should be.
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