Amazon, Apple, Facebook, and Google 2018 Case Solution
Summary
Although initially, the internet was being used for the purpose of military defense project during the 1950s, before transitioning to a global system restricted to universities and scientific research laboratories; privatization led to a worldwide explosion of innovation. Therefore, after the revolution of internet; it became essential for the organizations in order to achieve success. The major beneficiaries of internet are: Amazon, Apple, Facebook, and Google, which had the market capitalization of $3 trillion in 2018. They are market leaders in their respective target market, and it became possible just because of internet.Each of these companies dominated the internet in four different sectors, i.e.online advertising, online retailing, social engagement, and setting a standard for the interface devices. (Tonight, 2013)
Salient problems and Issues
Despite of these companies being the market leaders; problems started to occur when the firms started to face notable contests that continued to blur the boundaries that existed in the past, including the competition for dominance in the online advertising by Google and Facebook, retailing of digital content has led to the competitive rivalry between Apple, Google, and Amazon.Google and Apple compete in the cellular devices’ industry, because both have mobile operating systems: Android, and iOS, respectively. Amazon, Apple and Google also compete in the mobile devices sector by offering devices that are compatible with their operating systems, such as: voice-activated audio devices, tablets and mobile phones.
Moreover, Amazon and Apple are competing with each other’s digital content through Kindle and IPad. A contested boundary between Google and Amazon is online advertising. Google has been changing its search algorithm through the introduction of services, like: Ad Sense and AdWords. As a result of which, Google has managed to dominate the 90% of the U.S. desktop searches through its search engine. An important factor in the dominance of Google is how it embraces innovation, as demonstrated by its new search and advertising services, which explains Yahoo's 2% market share.
Key decision criteria
Winner-Take-All Markets
On the basis of above analysis; it could be said that Google is playing the contest very well, in terms of advertising as Google has started online advertising, which is essential of online retailing, created Google+ and Gmail for social engagement and captured huge market share from all four sectors.Additionally, Google covers all four sectors so the revenues are higher than other companies.However, Amazon captures shares from three sectors, while Facebook and Apple serve two sectors, but Apple is earning more profit than Facebook.........
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