Wednesday, February 2, 2011

Google's New Android 3.0 Versus Apple's iPad

What is the difference between Google's Android 3.0 and Apple's iPad? Technically, there's really not so much of a difference. I know, some would strongly disagree. In my opinion, however, the real difference lies in their strategic positioning.

The real difference between Google and Apple is their strategic positioning. Consider the following key aspects:

Apple innovates putting a substantial amount of resources into R&D. It has proven extremely successful at getting inside the consumer's head first, leading new product categories. Every product and software design challenges existing paradigms of user friendliness.

What about Google? Yes, a lot of Google revenue goes into R&D. But most of all, Google sticks to search, no matter what. Why? Because it makes Google "the information company". Whereas Apple continually has to come up with new products, Google can rely on great ideas from others and simply copy them by leveraging competing power with software that explores new ways to utilize highly interactive "information driven" software, such as Google Earth and many other online applications. It's Google's way of using information that gives them the added online or cloud computing position - which users love!

In mobile development both Apple and Google develop their own key applications, but strategically they rely heavily on 3rd party development. Still, they have distinctly different ways to market. I could mention a long list of strategic differentiators, but most of all notice how Google does not - at least for now - charge the market for their software. No, adds is their thing, i.e. Google AdWords, which remains their main source of income.

Oh, and let's not forget their social profile. Apple has no problem admitting that they're proprietary and "closed". In fact, they announce their competitive power to be just that, assuring a quality offering through and through. Everything needs approval and hardware / software is communicated to be one and the same, of necessity. So far, Google is software only (almost ;-) and everything they do in the market place aspires to a playful openness that includes and appeals to the user. Almost as a direct result of this strategic choice, Google naturally welcomes any cell phone vendor to run their operating system.

Any wonder why I love my Apple computer? Any wonder why I use Google's software 95% of the time? I'm convinced both Apple and Google will do well, but in the long run, Google has chosen a much wiser - more robust - strategy focusing on the key generic aspect of the future; "information". A strategy that eventually will turn Google into the biggest most successful company the world has ever seen.

7 comments:

  1. Google asset is their vast number of users. Google wakes up every day and they haven't made a penny yet. Only when users are driven towards adWords the pennies start to roll in. This has proven to be an extremely successful model so far. Until recently I would have agreed with you; they are successful and will continue to be so in the foreseeable future. However, this model is heavily challenged by other companies that users are driven to. Lets take the obvious example Facebook. Even though I am a very modest user of Facebook I spend more time on Facebook than I do on Google services. I even search through Facebook and even though the results aren't as good as Google's I use it. More such servies (Social Media) will come by and this is a huge challenge for Google. I agree with you that Google is a great company but I don't agree that Google will become the biggest most successful company the world has seen..

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  2. Of course, only time can tell. But then again, it wouldn't be any fun making this prediction if everyone agreed with me. I guess Google's stock value reflects that diversity of opinion ;-)

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  3. Just posted a sequel "Google vs Apple":

    http://vidartop.blogspot.com/2011/10/google-will-outrun-apple.html

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  4. Gradually unfolding http://www.theatlantic.com/business/archive/2013/01/what-a-new-cheap-iphone-reveals-about-apples-grand-strategy/267001/

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  5. Every so often we see these stories and examples that simply illustrates what I've been saying all along: Apple must change its business model to succeed long term http://www.linkedin.com/today/post/article/20130913142423-71871-apple-the-beginning-of-a-long-decline?trk=tod-home-art-list-large_0

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  6. Thanks for review, it was excellent and very informative.
    thank you :)

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