Summary:
Apple, Google, and Facebook are all trying to dominate our internet experience. Apple is not only based on hardware but also software. The Apple store offers about 2 million applications for mobile and tablet devices. Furthermore, Apple’s IOS is very secure and user-friendly, which is why it is a top contender of internet experience. Google is the leading search engine, it provides Android for free to smartphone manufacturers, making Android a primary OS used worldwide. Facebook is the world's largest social networking service. People use Facebook to connect with friends and family, and because it is so appealing it has become the primary gateway to the internet. Most of Facebook's revenue comes from advertising; however, they are looking for ways to expand by moving to messaging, and video displays, and this challenges YouTube. 95% of young adults use Facebook products, while Google and Apple provides 99% of mobile operating systems.
Related Research:
According to research Google has been talking about a new operating system (OS) Fuchsia that would replace Android. Fuchsia is building towards the next generation of smartphones. Like Apple Google wants to have its own OS so that they can have control over code, hardware and licensing. For Facebook, relevance is the focus of their personalization algorithm. Facebook looks at the smallest aspects of your online life so that it can recommend advertisements, similar to Google. Facebook is now finding ways to built the next big platform and recently, they started to put money into smart displays, like virtual reality. Apple has a reputation for innovative products. Moreover, Apple has a efficient supply chain, they own chip manufacturers and have a community of millions of software developers creating applications for Apple products. Apple products work seamlessly with one another which is why so many people go for Apple.
Question 1: Compare business models and core competencies of Google, Apple, Facebook
Apple’s business model focuses on centralized control of most aspects of its hardware and software. In 2011 Apple introduced SIRI (speech interpretation and recognition interface). Apple is not only gaining revenue on hardware devices but also Apple Music and iCloud storage payments. Apple’s core competencies are its innovative design, due to Apple’s appealing features, there is a significant competitive advantage over rival companies. Apple’s products are very hard to imitate and are very consistent in its product portfolio development.
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Google continues to be the number one search engine. Its business model focuses on the Internet and the Web. Approximately 84% of revenue coming from advertisements. Google’s core competencies are that in 2005 they purchased Android, an open-source mobile operating system to compete in mobile computing. Google provides Android at no cost thus making its main source of revenue through app purchases. Google’s core competencies are to extend Android to as many devices as possible.
Facebook gains 98% of its revenue from advertising. Facebook is also a serious competitor to Google in the mobile ad market. Facebook has its own search engine which competes with Google. During the past few years, Facebook has moved into virtual reality, messaging and video. A new standalone app will allow users to stream videos through setup boxes like Amazon.com, Apple TV as well as Samsung interconnected TVs.
Question 2: Why mobile computing is important to these firms?
Mobile computing is important to these firms because it does the activities that involve the internet without needing to be in one specific place. Not only that but it also increases the revenue of the firms. The strategies that firms use will be more customer-friendly. This can improve customer sand supplier intimacy.
- The mobile industry’s leader is Apple. The mobile computing strategy started with Apple’s iPhone, iPod, iTunes. Apple also provides IOS which is a closed platform that is only available for Apple devices, making it more restricted.
- Google introduced the Android mobile operating system for non-Apple devices. Android is open and allows users to use any applications through any resources, unlike iTunes. Google owns YouTube and Google Maps which provides user free access to watch videos and find places.
- Facebook provides a mobile advertisement on its homepage as well as on phone screens. Facebook also has its own search tool. As Facebook moves towards virtual reality, messaging and more it challenges firms like Google.
Question 3: Which company and business model is likely to dominate?
I think Google’s business model will likely dominate because there are a variety of services that Google provides. The three basic markets for mobile computing, are hardware, OS and application stores, all of which Google provides. Their OS Android is free therefore many manufacturers are using Android as the standard operating system. Furthermore. Lastly, Google’s App Store has the biggest advantage of them all. With many applications online and more in development, Google has taken a toll on the competition.
Question 4: What difference would it make to a consumer if the firms dominated the internet experience?
If the firms were to dominate the internet experience, then the consumer would eventually have to choose from one manufacturer only based on personal preference.
References:
- Bhatia, R. (2018, September 4). How Google Fuchsia May Change Your Internet Experience As You Know It. Retrieved October 29, 2019, from https://analyticsindiamag.com/how-google-fuchsia-may-change-your-internet-experience-as-you-know-it/.
- Kifleswing. (2019, October 19). Why big tech companies keep pouring money into hardware when Apple still dominates. Retrieved October 29, 2019, from https://www.cnbc.com/2019/10/19/microsoft-amazon-google-and-facebook-have-new-gadgets-for-holidays.html.
- Linton, I. (2019, February 11). What Is Apple's Competitive Advantage in Its Industry? Retrieved October 29, 2019, from https://bizfluent.com/info-8734236-apples-competitive-advantage-industry.html.
- Shayna Hodkin, S. (2015, August 7). The Internet of Me: Creating a Personalized Web Experience. Retrieved October 29, 2019, from https://www.wired.com/insights/2014/11/the-internet-of-me/.
- Spoonauer, M. (2019, April 19). 10 Reasons the iPhone Beats Android. Retrieved October 29, 2019, from https://www.tomsguide.com/us/iphone-is-better-than-android,news-21307.html.
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