Microsoft Case Study Microsoft responds to competitors and rivals by creating and revolutionizing new applications and services so that their users can do their best work. The case study discusses several times when Microsoft found itself facing a rival or competitor that posed a threat and Microsoft was still able to gain an advantage. Apple released Macintosh and Microsoft immediately responded with Windows 1.0, believing it to be a superior operating system. Lotus controlled the field early on, but Microsoft was able to win them over by offering a superior, easier-to-use product bundled to beat them. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayMicrosoft often offers bundles, such as combining Microsoft: Word, PowerPoint, Art and Excel, and deals to get the edge over competitors, such as bundling Windows with Internet Explorer. At its peak, Microsoft had a 95% market share, but then faced an antitrust case that limited it to its subsequent bundles. After the antitrust case, Microsoft adopted a cost leadership strategy, trying to reduce costs and sell at a lower price. They then beat Linux by offering smaller bundles and lower costs, which made it difficult for Linux to gain a foothold in the industry and was then quickly left behind. They face other challenges related to Java, WordPerfect and Lotus 1-2-3, but have managed to maintain their large market share by staying true to their ideals of higher quality products at lower costs. Throughout their history, Microsoft has been able to rely on their ability to create a high-quality, low-cost product to beat any competitor. Google was able to create a competitive advantage by being first in the industry. He was the innovator in the research industry and achieved incredible success with his unique product. Google was able to achieve a monopoly early on thanks to its product and high barriers to entry. Google also used cost-per-click advertising, which meant that advertisers only paid for advertising when the user clicked on the ad. This cost-per-click advertising strategy allowed advertisers to get an instant return because it was simply people clicking on our ads. or not and it was included in their revenue for each ad. This feedback was very helpful for advertisers and made even more advertisers want to get on board with Google's new strategy. This created their economic value. This created economic value for Google and allowed it to shift to a customer-centric approach, which gave it an even greater competitive advantage, allowing it to grow and hold 63.5% of the search engine market share. research in November 2008 (Table 3). In 2015, Google generated more than $17 billion in revenue from ads alone, an increase of 12% from the previous year and consistent growth each year. Being the first in the sector, innovating and offering the best customer experience has allowed it to have more than 400,000 advertisers, more than Google and Microsoft. Microsoft had only 8.3% market share in November 2008 (Figure 3) and this was due, as the Microsoft team described it, to a “vicious cycle”. Even though Microsoft was 3rd in the search industry, which would normally be a decent market share, it still wasn't enough to compete with Google. One way to put this intoperspective is that Coca Cola has a 48% market share compared to Google. PepsiCo is at 21%. Although the difference between them is only 27%, Coca-Cola remains the main supplier of soft drinks to 25 of the 35 largest fast food chains. The difference in Coca-Cola's revenue compared to PepsiCo's last year, when it comes to soft drinks alone, is a difference of more than $19 billion. Google had a market share of 3.5%, almost half that of Coca-Cola. The difference between Microsoft and Google's market share was 55.2% and yet Microsoft was still trying to manage and compete in this industry. Coca-Cola vs. PepsiThis example is just a concrete example of how every small difference in market share impacts the industry to the tune of millions of dollars. Google had a huge competitive advantage and market share over its competitors Yahoo and Microsoft. Microsoft is well known for being an innovator and offering amazing products and prices and has continued the trend in search and search advertising. They couldn't leave such a mature and open market. As Google focused on cost-per-click advertising and gained more and more market share, which would soon compete with Microsoft, Microsoft realized it was time to create some economic value. The research sector had many unknowns and did not seem attractive at first. to many consumers or businesses. Microsoft was the dominant power in the computer and software industry, but once Google started gaining market share and power, Microsoft went on the defensive. A company like Microsoft which has been in power since 1975; and has defeated its former competitors by relying on what they do best, creating great products at a lower price than its competitors. They weren't going to let Google change that. Microsoft's strategy included countering Google's cost-per-click advertising with search and search advertising, but it also couldn't attack departments it didn't fully understand or risk spreading and to allow other competitors to enter and take control under their control. huge area. They continued to create new products at a cheaper price than other competitors and tried to keep the internet browser market they controlled dominantly, but soon Google released Google Chrome and it has been a battle ever since with the favor that is slowly leaning towards Google Chrome. in recent years. Their defensive strategy kept their competitors at bay in many areas, but some were too competitive to control. Although their strategy was defensive and tried not to let Google gain much of the market share and expand into other departments, unfortunately it didn't work and they allowed Google to entered the Internet browser department and allowed them to gain a foothold with their Google Chrome. Internet browser. Microsoft should continue what it has always done, but with a slightly deeper product differentiation strategy. In the past, Microsoft has beaten its competitors by offering a better product at a lower price and is expected to continue doing so, albeit with a few more markets. Microsoft is known for its bundles like Microsoft Word, PowerPoint, and Art, but it has yet to fully leverage the cloud. Apple has already moved to cloud computing so that it can offer its customers constant updates and bug fixes .