Question

Read the case study "Google, Apple, and Facebook Struggle for Your Internet Experience" on page 255. Then discuss the advantages and disadvantages for each company.



BUSINESS PROBLEM-SOLVING CASE Google, Apple, and Facebook Battle for Your Internet Experience Apple has a legacy of innovatio
Chapter Telecommunicabon, HEILTRLI M U . in undeveloped areas who currently lack Internet access. The more people who are con
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Lets understand the context of the question. Given the era of retail e-commerce, the case study is trying to identify the edge each of the 3 companies have versus another considering that majority users would be mobile/tablet based. Hence, we need to look at which of the three companies is likely to have the highest user base for its mobile/tablet devices in addition to a solid platform for ecommerce players to sell and market their products and services Apple Advantages 1. Leader in mobile software applications which gives its devices and users an edge over competitors. So far the app store has more than 1.2 million apps which is a huge number to keep customers engaged with mobile devices 2. Loyal user base. You may have heard or seen people who continue to upgrade to a new I-phone model as it comes to the market without consideration of price 3. Market moving innovations: SIRI(its virtual assistant is one example) Disadvantages 1. Cheaper alternatives from China and low cost, large screen smart phones from Samsung 2. Proprietary OS- Apple's Operating software is proprietary to its own devices only. The market share of the OS is fairly low at less than 20% as compared to android Google Advantages 1. Highly efficient search engine - Google's search engine is currently used for 75% of the World's web searches. With Yahoo's downfall, Google rose to further prominence and became by and large a market leader for its search engine 2. Dominant player for advertising: Google stays a strongly preferred platform for sellers to advertise their products and services 3. Most used operating system: Google's Android system is deployed on 81% smartphones worldwide 4. Huge investment to connect people with internet: Google is investing significantly and connecting more people to internet. This will strengthen its P&L and increase its ad revenues Disadvantages 1. Legal issues: Google is currently facing charges from European Union Commission against unfair competition practices. The suit would cost monetary as well as reduced ease of Operations in EU. This will also impact Google's business performance Facebook Advantages 1. Largest Social networking site: Current user base of 1.4 billion monthly active users. Almost 265 million people log into Facebook using mobile devices every day and about 1.2 billion people access the service on mobile devices 2. Growing use of Facebook ads: As compared to other competitors, Facebook ads are targetted and filtered basis age, gender and geography etc. 3. New Age features: Facebook has introduced features such as larger size of pictures on homepage and create topical streams. Such features are very lucrative for advertisers and e-commerce sellers 
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