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Google

The long awaited deal between Microsoft and Yahoo!, which may be seen one day as a significant event in the internet history, is a reality. This ten year web search and advertising partnership is likely to create a serious rival to Google in both the markets where Google currently dominates. This is the latest in the slew of competitive moves from both Google and Microsoft to gain the leadership positions in the search, operating systems and the applications markets. The question is, Will a winner emerge in the foreseeable future or will this be a zero sum game?

Google Brief: Google was founded in the mid-1990s, and the initial focus was on the search and advertisement business, bringing in differentiators in the algorithms and the revenue model. In the later periods, Google forayed into many products like YouTube, Google Maps, and made numerous acquisitions. The main focus currently is in areas of Search, Operating systems (mobile, net books and full fledged PCs), and Applications with products like Google Apps, Google Chrome platform, and Chrome Android.
Currently Google commands an 80% market share in the “Search and advertisement” business and plans to challenge the dominant position Microsoft has in the Operating systems and Application software markets. The challenges Google has to overcome are in the areas of legal and antitrust suits, threats from competition, and the privacy concerns while moving towards an “open source” model for its product development.

Strategy & Competition: While the Search product acts as a “cash cow” for Google; its position needs to be defended, especially in the light of competition from the partnership between Microsoft and Yahoo! and Microsoft’s focus on the internet advertising market. The objective can be achieved by continuous innovation in the domain. Other than the

Search business, Google has been focusing on the Chrome OS which is expected to introduce a “slow explosion” in the operating systems market. The...