When we talk about telecommunication, the internet and wireless technology, the names pop up in our heads are three IT giants – Microsoft, Google, and Apple. These multinational companies are the major players in the IT domain, competing across a wide range of sub-industries with unique business models.
Before I get into the business models of these companies, here’s a quick overview of the market shares of these three companies:
| Microsoft | Apple | ||
| Core Business | Advertising | Software | UX |
| Market Capital | $1.501 T | $1.801 T | $2.08 T |
| Revenues | $181.69bn | $143.02bn | $274.5bn |
Business Models of Google, Microsoft & Apple
Each of these companies has one primary target: dominating the internet market and delivering the best user experience.
Microsoft
95% of businesses worldwide use Microsoft Windows operating system and Microsoft Office suite. Before Google Web dominated the market, it initially focused on desktops for running its operating systems and productivity applications. But with tablets and iPads replacing desktops, Microsoft has shifted its focus on making Windows software suitable for competitors’ mobile products. Although the company wants to keep customers engaged with its products, it has failed to rule the mobile computing market.
The heart and soul of Google’s business plan are generating revenue from the web advertisements and its search engine. The company offers a wide range of free services to lure users and collects their data, which it then sells access to other buyers across different platforms.
Google’s copyrighted PageRank search algorithm is another masterstroke that brings many web users and connects target consumers with businesses. Its no-fee model and flexible infrastructure have helped the company to gain 3X more market share than its competitors.
Apple
Apple’s business model is centralized on mobile devices such as iPhones and iPads, contributing to 52% of its profits. It’s way ahead of its competitors with hardware and high-end products.
Apple is wholly consumer-oriented and targets to deliver the best user experience – be it its app store or safeguarding user details.
The company’s business model has successfully created a loyal user base fixated on these high-end products, controlling 27% of the cellphone market.
Strengths Of Google, Apple, & Microsoft
Here’s a detailed analysis of the strengths of Google, Apple & Microsoft.
Apple’s Strengths
#1 brand
Apple is the most valuable global brand with a brand value of over $263.38bn. The company earns 52% of its revenues from iPhones and focuses on developing the best product to meet users’ requirements. It has also ventured into different sub-industries, which generates 19% of annual revenues.
Global customers
Apple is one of the most trusted brands for high-end personalized gadgets, computers and the latest tech devices. It is a famous brand choice among millions of loyal customers. The company also has specific services to meet corporate organization’s needs.
Latest technology
It’s common knowledge that Apple was the first company to introduce high-end products with leading technology. Whether it’s their iPhones, iPads or Apple watches, the company still strives to be innovative with top tech devices.
High sustainability
Apple uses a recycling robot, Liam, to break down iPhone parts and reuse them. It is designed to safely dissect every piece to reuse for manufacturing new Apple products. This helps the company to practice sustainability and reduce waste.
Microsoft’s Strengths
Largest software company
Microsoft is THE leading player in cloud computing and generates 143 billion dollars with the commercial cloud. It operates in 190 countries and has hit the 700 million mark with Windows 10 installs. Its vigorous growth in cloud computing has made it a trillion-dollar business.
Customer Loyalty
With 1.2 billion Office users and 60 million Office 365 customers, Microsoft has built superior customer loyalty. The company has adopted robust marketing strategies to influence people’s purchase decisions. Its famous advertisement titled “The future starts now” has gained more trust in the brand and encouraged customers to remain loyal.
Market capitalization
With $1.801 T of market capitalization, Microsoft is ruling the software market and maintains its position in the top 5 global companies. It has high brand equity and started investing in other domains beyond Windows and Office. The company is also known to use a lot of money to attract more enterprise customers.
Easy to use
Microsoft’s primary vision was to see a PC in every household – and they’ve achieved it. Billions of consumers trust the brand for its high quality products and services. Both Windows OS and Office Software are of the highest quality and user-friendly software products.
Google’s Strength
Pioneer of search engines
Google needs no introduction when we talk about the best search engine. The company dominates the search engine market with over 65% market share. They have built their search infrastructure from scratch with their designs, networking solution and dispatching mechanism – no wonder why they are considered the leader of cloud computing.
Drives user traffic
Billions of users turn to Google to search for information. Its ability to generate user traffic is simply extraordinary, which averages around 1.2 billion hits a month. Despite so many competitors, no one even comes close to such massive user traffic.
Millions of businesses use this platform to drive traffic to their website and increase revenue. Whether you are an essay writer delivering online essay help online or a small brick and mortar business owner, you turn to Google for the best results.
Humongous profit margin
By far, Google is the search engine leader, and it generates a colossal amount of profits from third party sites. It offers extensive online advertising services for businesses of all types and sizes. Google’s other high-revenue generating feature is the App store. Whilst the company invests heavily in R&D, it beats the market competition with its advertising tactics.
Android operating system
Granted that Google is a well-established name in search engine and online advertising, the company has also entered into mobile computing, android operating system and application stores. Google doesn’t charge for Android, which is another reason why developers are fond of it. It has also increased the number of apps for Droid-based mobile devices and Google Web apps, directly competing with Apple and Microsoft.
A Comparative Overview Of The Strengths of Google, Apple and Microsoft
Each of these companies has unique strengths and competitive advantage. Google may have 65% of the market share in advertising, but Apple and Microsoft leave no stones unturned to overturn the business. It may rein web-based services, but Apple’s experience in mobile computing is a massive advantage for the company.
Microsoft is a big bull in the software market and has billions of loyal users. Both Google and Microsoft are financially strong and looking for better growth opportunities. Apple is not far behind either. Apple’s products are personalized, offer a top-quality user experience and generated massive profits for the company.
Right now, each of these companies has something unique to offer. They are looking for ways to beat the competition and grab more customers. For instance, Microsoft is trying to join hands with Apple to make Bing the default search engine instead of Safari for iPhones and Apple Web browsers. This would give a much-needed boost to Microsoft in the search engine market.
Apple is no doubt leading with apps, but Google is catching on through the Android operation system. So, all in all, each of these companies is worth billions of dollars and has mammoth potential to make it a winner in the proper sense. Hence, predicting whose strengths are “stronger” will remain a challenge.
Author Bio:
Clara smith is a blogger, digital marketer, and one of the top-rated essay writers at Allessaywriter.com. She is passionate about digital marketing and has worked with some renowned digital marketing agencies in the US. Apart from work, clara loves to write journals, make vlogs, and take long naps.
