Apple Vs Microsoft

Globalization experience: a confrontation between Microsoft and Apple
Introduction
Nowadays, in a world characterized by fast growing technology it makes sense to look at
Microsoft and Apple market entry strategy in order to have a better idea what does it mean to be
competitive in technology environment. The competition between these two huge companies is
very interesting as it takes place in almost all subsectors of the technology industry. In other
words, Microsoft and Apple are opponents in hardware and software for PCs, operating system
(iOS vs Windows), mobile phones and tablets but also applications and Web browsing. For many
years Microsoft had an edge over Apple but the balance tilted in the last years: in 2015, Apple
had a business value of $640 billion while Microsoft only $376 billion.
In the next section the business model adopted by Apple and Microsoft Office are briefly
discussed. Moreover, a detailed overview of their market entry strategies is provided.
Business models and market entry strategies.
Steve Jobss concepts had and still have a great meaning in how Apple is running business. The
Apple model is based on dominance and risk. Apple revolutionized multiple sub-industries: it
crushed Sony in the Walkman industry, redefined mobile phones and created the tablet sector.
But this was not enough to succeed, Apple had no problem in being ruthless just to prove their
dominance over competitors like Samsung, for example. The weak part of the chain is actual
given by its most successful product: the iPhone. At the time, iPhone was a very well received
because it brought many innovations but after Jobs death the company had no new innovation,
which in the long run will affect the business cap of the company.
Apples market entry strategy can be analyzed taking into account three important constraints: its
own competencies, the industry value system and the efforts to deliver a mobile device with
many basic functionalities (West & Mace, 2007). Before entering the market, Apples strategy
was to combine innovation with industrial design and smart marketing. Once on the market,
Apple was very aggressive with all the companies that tried to create clones of its product
(Carlton, 1997). Moreover, Apple invested money in technical skills, managerial systems and
innovation (Leonard-Barton, 1992). Lastly, Apple tried few times, with success, to produce a
product that at a certain moment was not needed. Lets take the example of the tablets. When
they first appear there were already smart phones capable enough to do almost the same thing as
a tablet. But with time, these new device differentiated more and more from the phones and led
to a new sub-industry.
In contrast to Apple, Microsoft business model was not so risky. For decades, the company had
no opponent in the computer industry because of its proposal for operating system, namely
Windows. Microsofts approach had few key points: ask a fee to use its OS and the Microsoft
Office suite. However, nowadays Microsoft shifted its focus on a new model that assumes
product integration and a free package of software.
Since the main strength of Microsoft is Windows, the whole market entry strategy, at least few
years ago was around this product. Microsoft always tried to create an OS capable to allow many
software applications to run on it. The idea was simple yet effective: the OS becomes more
attractive for a user if a larger number of applications are available (Baye & Scholten, 1994).
However, Microsoft foreseen some opposition from competitors in this area so it decided to take
a series of anticompetitive measures: other Microsoft software products were tied to Windows
(Microsoft Office suite), forbidding customers to share or buy products from Microsofts
competitors
Conclusion
These report aimed to outline the game between two companies competing in the same sector.
Microsoft and Apple are the best example of huge organization fighting to monopolize few
niches of the technology industry. Furthermore, a detailed insight about the weakness and
strengths of the companies business model was given. In the end, the market entry strategies
adopted by each of the company were being discussed.
To conclude, it can be said that the two companies are using different business models, Apple
focuses on risk and aggressively while Microsoft has a rather conservative approach.
Consequently, their entry market strategies are very different. Apple is always looking to protect
its products from cheap clones and is trying to bring innovation, but the latter is not so valid after
Steve Jobs death.
References:
Baye, M., & Scholten, P. (1994, July 15). Strategies Used by Microsoft to Leverage its
Monopoly Position in Operating Systems to Internet Browser Markets.
Carlton, J. (1997). Apple: The Inside Story of Intrigue, Egomania and Business Blunders. New
York: Times Business.
Leonard-Barton, D. (1992). Core Capabilities and Core Rigidities:A Paradox in Managing New
Product Development. Strategic Management Journal, 13, 111-125.
West, J., & Mace, M. (2007). Entering a mature industry through innovation: Apple's Iphone
Strategy. DRUID: Appropriability, proximity, routines and innovation. Copenhagen .

Apple Vs Microsoft

Uploaded by

Copyright:

Available Formats

Apple Vs Microsoft

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Apple Vs Microsoft

Uploaded by

Copyright:

Available Formats

Globalization experience: a confrontation between Microsoft and Apple

You might also like