Comparative Study of the Business Models and strengths of Apple, Google, and Microsoft
Business Model and strength of Apple
Apple has a business strategy that is split into goods and services. Because he was fascinated with aesthetics, Apple's developer, Steve Jobs, sought to understand how technology could be promoted to the general public. Apple uses its distinct capacity to create and manufacture its own operating systems, equipment, mobile applications, and operations to provide its consumers' goods and products with cutting-edge research, improved usability, and perfect connection. Apple generates revenue by creating, producing, and retailing smartphones, tablets, desktop computers, smartwatches, and peripherals. The main strengths of the business model of Apple:
- Apple's distinctive branding is one of its key advantages. Its goods have eye-catching design aesthetics and are luxurious, simple, unique, and creative.
- The very inventive goods (iPhones, iPads) that changed the world were first introduced by Apple Inc.
- Apple provides a dedicated business website that offers top-notch technology solutions for each company's requirements.
- Apple is meticulous in its product development. To comprehend the requirements and desires of clients, a thorough investigation is made and more analysis is done.
- Apple consistently adheres to a straightforward formula, which entails building strong client relationships to increase product sales. Therefore, happy customers would result from a positive customer experience.
Business Model and strength of Google
A multifaceted platform makes up the Google business model. It is not the consumer who charges for the service because Google is predicated on a covert business model paradigm. Google's primary source of income, like that of other communication firms, comes from paid media. Companies charge to promote on search engines so that their ads appear first to users who are their target market. The goal of Google is to put the world's knowledge in order and make it helpful to everyone. Performance Advertising is used by Google. In other words, the advertiser doesn't get paid until the user does anything, like click a link. YouTube, another subscription service offered by Google, allows users to view material without advertisements. The main strengths of the company are:
- We are accustomed to clicking Google when conducting an internet search. It may be stated that for most of us, Google equals the internet. On average, Google handles around 40,000 search inquiries each second.
- Google is one of the most valuable brands. The market capitalization of Alphabet, the parent company of Google, is currently $1 trillion.
- Google consistently invests in fresh concepts and innovates. And most likely because of this, it can even challenge Apple's offerings.
- The business can build and retain the profitable characteristics of its consumer devices and internet services thanks to the numerous copyrights.
Business model and strength of Microsoft
Microsoft's primary business activities include the selling, distribution, and support of systems and software that are used in both the entertainment and business sectors. To maintain all its products and services, however, its business model consists of a few different sorts, such as:
- Each operating system is designed particularly for each app, piece of software, and Xbox game.
- Customers continue to use Microsoft software and apps because of the hefty switching fees.
- For instance, while LinkedIn is a free corporate social network, some tools are exclusively accessible to premium members.
- In addition to LinkedIn, Microsoft uses this business model for its cloud services and Office 365, to name a couple.
- For instance, on their platforms, LinkedIn, and Bing both display adverts to users.
- Microsoft branding is blatantly shown in the products even if they are only integrated into PCs.
The main strengths of Microsoft's business model:
- In terms of software technology, Microsoft is a market leader, particularly in cloud computing. It is the biggest Windows OS creator and the top cloud player in the world.
- Over 190 nations throughout the world are where Microsoft is present. Windows 10 has had more than 700 million installs globally since the promotional edition of the operating system was released.
- 60 million companies use Office 365 commercially, and there are 1.2 billion users of Office overall. The most devoted consumer base is unquestionably its. The brand enjoys the patrons' trust and continued patronage.
- When it comes to having the strongest brand equity and power in the digital sector, Microsoft was placed fourth overall by Interbrand.
Comparative Study of the Business Models of Apple, Google, and Microsoft
If we do a comparative analysis of the business models of the top three tech giants in the world then it can be presented as follows:
- Apple is a business focused on its customers. They go beyond the bounds of digitalization and show little concern for the business. Google and Microsoft, on the other hand, work to democratize technology.
- Appearance and customer experience are major priorities for Apple. Luxury and beauty are valued. The "next 2 billion" users are Google's main priority. For Google, business comes second. Microsoft successfully targeted the business sector.
- iOS utilizes two distinct frameworks. The first is the closed and tightly regulated App Store, and the second is HTML5, an open technology to which Apple has made contributions. Microsoft is a platform corporation that builds ecosystems around objects and uses them to generate revenue.
- Considering the cloud operations, Google associates with a proper direction of providing a leadership approach and associating with self-sustaining cloud services. The application of investing in the cloud system along with the usage of existing cloud structures is a relevant part of both Apple and Microsoft operations.
- Google products are associated with aggressive direction for transparency while Microsoft is mainly related to the controlled approach towards management of enterprise operations, something which Apple processes in an even strictly controlled manner.
In this approach, the respective business model associated with these three companies has been presented through apparent communication and planning. Comparative analysis has been evaluated through a detailed understanding of their respective strengths and way of business conduction.