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Sunday, September 19, 2010

Google’s Successful Strategy

Microsoft has been in the products and software business for a long time. They outpaced the competition through their Windows OS platforms and then lived off the clout they held with software developers, since the market was controlled by Windows. Everyone used a Windows OS and so developers were easily swayed into developing for this system, and users were swayed into buying such software. Only in more recent years have they emphasized the importance of cloud-based computed, as evidenced by Steve Ballmer’s vision statement. Apple’s success has come from their stranglehold on devices, such as the iPhone, iPod, and iPad. They have brilliantly created massive network effects through the use of their user-friendly iTunes platform and App store. These network effects for music and applications have brought a once dying company to the forefront of technology.

Google, however, has been ahead of the curve since day one. This can be seen through their mission: “to organize the world’s information and make it universally accessible and useful.” Google’s success has come from their ability to not only organize data, but collect it, for everyone. As they have transitioned from a search engine to Gmail to everything under the sun, they have progressed through their use of cloud-based services. Now, others have followed this trend in using the cloud, however Google’s advantage in data collection has allowed them to take the lead in several areas, from improving their search engine based on previous user searches to providing more aligned, personalized advertisements to changing Google Maps from a mapping service to a service that also provides advice about locations (where to go, what to eat, etc.) Their mission of collecting and organizing data fits well within a cloud computing world, since this world is extremely malleable and interactive, allowing continuous improvements to applications and services based on data collection.

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