Microsoft vs Apple: Monopolist vs Innovator (part 3)

4) Microsoft's chance against Google in the search market

This is a piece about MSFT and AAPL, but I think I have valid reasons to bring Google into the picture. In my opinion, Google is one of the very rare companies that enjoys an MSFT type monopolist position, and at the same time, maintains the AAPL type of innovation. In addition, innovation is the only key that Microsoft could use to break into GOOG's territory.

This is a big topic, here I'd like to share some general thoughts which I will explore further in my future posts.

First, the external pressure from being a search engine monopolist is much less than being Microsoft. GOOG has better control over the usage of its product, after all, it is an application sitting on Google's servers.

Second, Google matches Apple in the innovation power. Apple's innovation is in users' experience, which is the combination of original ideas and brilliant designs. And Google simply manufactures genius ideas, for example, AdSense.

Third, Combining the first and the second point, Google matches Apple in the capability to continue their path towards more innovations - the corresponding mechanism, culture, atmosphere all have been well established.

Fourth, Google spent billions of dollars, developing a lot of normal as well as 'geeky' applications, then offered them to the public for free. There are many reasons behind this, and I believe one of them is that they just have too much money (hehe). Another one, they are building Google into a platform for 'everything', thus growing the users' dependencies, resulting in the increased threshold for the competitors.

Fifth, even after Google turns into a business behemoth, it maintains the image as a technology company (another reason why it developed and distributed those 'geeky' applications), but Microsoft, since the days it fought and killed Netscape, has turned its public image into something like 'it is all about business' . This is another barrier that MSFT has to break. Talking about search, MSFT feels too clumsy, similar as Yahoo feels too shallow, but Google feels just right, simple, capable and a technology savvy.

Sixth, MSFT needs a big break-through in innovation ideas to challenge GOOG. But as mentioned above, its culture is about being a solid implementer, instead of an innovator. As a result, I don't see MSFT making even a dent in Google's market share in the near future.

Seventh, GMail is original, Yahoo Mail is solid, Hotmail is like a piece of junk. Nothing can explain this type of failure and it is a sign how badly Microsoft manages its internet project. Another one, does anybody really understand what the heck Windows Live is? Micorosft's issue in the search market is not something so complicated that can only be explained at a deeper level by factors such as the culture, atmosphere, etc, they have some very basic and obvious problems to address. I see a re-organization a must before there is any hope to turn things around.
Support my blog by clicking the Ads!