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Microsoft’s Challenges in Internet Search and Advertising Amidst Google Competition Case Study

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Primary Issue Facing the Firm

The primary issue in the case “Microsoft’s Search” by Rivkin and Van Den Steen is that in September 2008, Microsoft executives set out to improve the company’s market for internet searches and related advertising to Microsoft’s competitors. The introductory part of the case States that in as much as there have been great strides for the past five years, Google, a great competitor, is ahead. This was according to Jay Girotto, a member of Microsoft’s research team for three years. According to the first paragraph, the firm’s primary issue is improving internet searches and related advertising methods.

Secondary Issues Facing the Firm

The firm faced various secondary issues, as envisaged in the case. For example, the Microsoft directories struggled to keep up with the Internet’s explosive growth and automated search engine, which soon became the Web’s leading navigational tools. During the rise of Google, Gross implemented the idea of launching a pay-for-placement per engine.

The advertisement by Google put them ahead financially and led to the growth of Google’s search engine as people had to bid on keywords, and the highest bidder got the best spot on the page showing the search results. This approach was challenging for the company because many people were willing to invest and bid to get recognized when keywords are used on the search engine.

The most appropriate action for the firm to adopt is giving the leader a chance to head and put their investment on similar products but offer at a free level. Things including Gmail have a limit of storage which of Microsoft should consider taking the opportunity to offer not necessarily free but an affordable and flexible budget from what Google offers as a competitor. As for the search engine, the bidding level should be affordable to attract more investors and have a variety of keywords to be considered during the search.

Available and Potential Resources

The company has access to a range of resources that it can use to achieve their mandate. For example, allowing individuals to invest in company shares can increase the firm’s financial statements because most consumers are willing to invest. Microsoft has specialists or, rather professionals that play a big role in advising and an already ready audience that is willing to invest and consume the content. Microsoft has the finances that they can use to upgrade the operating systems for the investors, including Compaq, Dell and Tandy who are willing to invest in Microsoft with hundreds of millions of dollars in total.

Microsoft has a bigger population of those using the Microsoft operating system at 90% while its competitor Apple holds a 7% share. Therefore, Microsoft is at a higher bar when compared to that of Apple this is evident in Operating System paragraph 2. Microsoft worked with independent software vendors (ISVs), which wrote applications that ran on MS-DOS, and Microsoft provided tools that made it easier for ISVs to write software for MS-DOS. Major ISVs of the day included spreadsheet maker Lotus and word processor maker Word Perfect, which didn’t have any competition; hence most people compared to its competitors.

Microsoft upgraded the operating systems after the launch of the Macintosh computer and introduced Windows 1.0 and, it’s first OS with a graphic user interface (GUI). The introduction of Windows 3.0 in 1990 was the game changer for Microsoft because the operating system rose from $500 million for Windows 95 to an estimated $10 billion for Windows Vista. As the operating system business continued booming in the 1980’s, Microsoft cautiously entered the business of developing application software. Around 1990, Microsoft released a popular Microsoft Office suite and began offering “competitive upgrades.” By 1995, Microsoft was the dominant provider of word processors, spreadsheets and presentation software, which were in use.

Microsoft licensed Java from Sun in 1995. Sun Microsystems championed this programming language, which then later sued Microsoft for creating a “polluted” version of Java and making Windows XP incompatible with Java. Microsoft surprised observers by striking a deal with Novell, a vendor of Linux installation and support services. Microsoft pledged to work with Novell to make the Windows server OS compatible with Novell’s version of Linux so that servers could run both. Microsoft already has an audience, and this will help hike the firm’s financial statements.

The firm should adopt the recommended strategy because it is most likely to increase the financial rates and cash flow. Moreover, hiring diverse people, including immediate graduates, to ease the workload and help to improve the quality of content and also the quantity being offered. More gets done in a short time. Microsoft should also consider collaborating with companies that are in the same line of business to help expand the territories and add on to the creativity of what the firm has to offer.

Implications of the Suggested Strategy

However, one of the implications of this strategy is that it may increase the rates of financial statements to keep the cash flow in the firm. The firm may also achieve a higher level than the competitors because Microsoft has more people to ease the workload and keep the strategy running. The suppliers and investors will be contented and willing to invest because the returns are high due to high financial expectations. Consumers will have access to better quality and quantity information. The strategies will help maintain the firm’s daily activities and what is to be expected and plan for any shortcomings or what is to be expected. Microsoft has had its share of gains and losses, but it should consider laying out strategies to benefit the firm. The experts employed should work towards being better than its competitors. Microsoft should also consider having a platform of interaction with its users and the services they provide. This will be of help so as they can improve the quality of services they offer.

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IvyPanda. (2024, October 26). Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition. https://ivypanda.com/essays/microsofts-challenges-in-internet-search-and-advertising-amidst-google-competition/

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"Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition." IvyPanda, 26 Oct. 2024, ivypanda.com/essays/microsofts-challenges-in-internet-search-and-advertising-amidst-google-competition/.

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IvyPanda. (2024) 'Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition'. 26 October.

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IvyPanda. 2024. "Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition." October 26, 2024. https://ivypanda.com/essays/microsofts-challenges-in-internet-search-and-advertising-amidst-google-competition/.

1. IvyPanda. "Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition." October 26, 2024. https://ivypanda.com/essays/microsofts-challenges-in-internet-search-and-advertising-amidst-google-competition/.


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IvyPanda. "Microsoft's Challenges in Internet Search and Advertising Amidst Google Competition." October 26, 2024. https://ivypanda.com/essays/microsofts-challenges-in-internet-search-and-advertising-amidst-google-competition/.

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