What is Google?
Is it a venture capital firm for tech startups? I don't think so. See this interview by Scobleizer. Microsoft is suffering from disruption because they have a 'business' model for developing applications and Google just does it. Why?
Why does Google even play in the same application space as Microsoft? Most of Google's revenue comes comes from advertising - 99%.
Google have a 62% U.S. market share in internet search advertising. 80% in Australia. This is a market that has been growing at 50-60% per annum and is forecast to continue growing at 30-40% per annum.
Why did they create Google docs when Microsoft has the dominant office environment? Our market analysis would indicate this was a bad idea. Perhaps as an internet applications company it makes more sense for them to create their own browser - but Microsoft Internet Explorer still has 72% of worldwide market share . Shouldn't they be trying other strategies like partnering?
Haven't they just forced a competitive challenge from Microsoft? Microsoft then has to be seen to tackling Google's dominant position - they have 8.5% of the U.S. search advertising market. Double looser.
1 comment:
Possible reasons for Google needing to address a Microsoft threat: Comments in How Google falls: Unprofitable in 2009
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