Bing is a brand that was introduced by Microsoft in 2009. In fact, it was a re-launch of the search engine developed by the company. Microsoft expected to receive a significant profit and gain a substantial market share. However, the new brand has proved to be less successful than expected (Ovide n.p.).
More so, it is associated with significant losses the company has made. Nonetheless, it does not mean that the project should be shut down. Clearly, numerous changes should be made to make Bing a real competitor of Google’s search engine. However, the effort is worthwhile as the market of search engines is rapidly developing and is potentially beneficial for effective competitors.
First, it is necessary to stress the reasons for remaining in the market. Clearly, in the era of information, people will need effective search engines that will enable them to find and use the most recent and the most valuable data. The amount of data is increasing each second, and it becomes harder to access the necessary information in this abundance of data quickly.
Therefore, people will need efficient search engines to cope with the challenges of the information era. Of course, it is a mistake to leave such a promising market. Clearly, Google can be seen as the first-mover who has entered the market and won its lion’s share. Nonetheless, there are also high chances that late-movers (as Bing) could win a significant market share.
To achieve this goal, Microsoft staff should take into account a number of concepts, and the company should be able to develop proper strategies. First of all, it is important to understand that Bing and Google’s search engine should be seen as an example of the interfirm rivalry that is based on the market commonality (Chen 112).
The two brands are operating in the same market and address the same target audience. It is also clear that the resources available are also quite similar even though Google is the first-mover. The peculiarities of the search market imply similarity of resources for both first- and late-movers.
It is even more important to take into account the advantages and disadvantages of being the late-mover (and Bing is the late-mover in this case). Of course, a major disadvantage of being a late-mover is that the first-mover has already taken a certain share of the market, and it is more than 70% in the case with Google (Ovide n.p.). There are also some standards set by Google, and this can be a disadvantage for Bing, as the brand will have to comply with the standards created by (and for) another brand (Lieberman and Montgomery 44).
At the same time, it is possible to identify a number of advantages that can enable Microsoft to make Bing profitable and make it win a significant share of the market. For instance, free-riders effects can be a good advantage for Microsoft. Thus, it has been acknowledged that “imitation costs are lower than innovation costs in most industries” (Lieberman and Montgomery 47).
The online search market is one such industry, as major peculiarities of the functioning of Google engines are known. Bing can imitate some of the tools employed by Google’s search engine. More so, late-movers are often in a more favorable position when it comes to human resources (Lieberman and Montgomery 47). Bing can benefit from recruiting professionals working for Google (or those who left Google) to learn more about the peculiarities of the rival’s operations.
The resolution of market uncertainty is also an advantage for Bing. Thus, Google has come up with its search engine, and the company has set certain standards. At this point, all companies that will comply with the standards will compete effectively. The competition will involve the focus on prices and some added value (Lieberman and Montgomery 48). Bing can and should work on the strategies to make sure that it will become more competitive.
The so-called incumbent inertia of the first-mover is another advantage for Bing. As with any other first-mover and a big company, Google may lack flexibility (Lieberman and Montgomery 48). Bing has to be more flexible and look for new ways and tools to improve the search engine. Of course, it is important to employ research focused on understanding customers’ needs and expectations (as they can change). This will enable Bing to win a larger market share.
It is possible to conclude that Bing needs to undertake a number of steps. First, Microsoft should make sure that their search engine employs similar tools that have been effectively used in Google. This will enable Bing to comply with the standards created by Google.
Clearly, Bing should come up with innovative searching tools and strategies to provide a product that has an added value and/or is more affordable. Bing should be very flexible. Microsoft should invest more in research that will enable the company to trace the changes in customers’ needs and expectations. This will help the brand win a larger market share and even become a leader in the long run.
Works Cited
Chen, Ming-Jer. “Competitor Analysis and Interfirm Rivalry: Toward a Theoretical Integration.” The Academy of Management Review 21.1 (1996): 100-134. Print.
Lieberman, Marvin B. and David B. Montgomery. “First-Mover Advantages.” Strategic Management Journal 9 (1988): 41-58. Print.
Ovide, Shira. “Microsoft’s Web Woes to Wipe out Profit.” The Wall Street Journal 2012. Web.