Competitive Strategies of Google and Microsoft
The Battle for the Future of Search:
Comparing the Brilliant, Competitive Cultures of Google and Microsoft
Both Microsoft and Google have emerged as catalysts of remarkable growth in the high technology industry. Each of these companies have a very unique, finely-tuned series of strategies for managing the innovation processes, including the steps each rely on for creating new services. Each also has shown remarkable success at delivering exceptional disruptive innovations in their core markets and globally across the consumer markets as well. This inevitable track record of success isn't an accident; there is a fierce level of intensity and competitiveness both within the company cultures themselves and across their vast, global ecosystems of suppliers, customers and shareholders. And both of these companies are looking to dominate the lucrative online advertising business models now showing the potential to be multibillion dollar businesses over time (Finkle, 2012). Both companies have invested millions of dollars in contextual search as well, in addition to in-car navigation systems and in the case of Google, their completely automated driverless car (Finkle, 2012). Both are also solidly positioned to lead the next generation of cloud computing as well, with Microsoft investing in their Azure platform and Google with their AppEngine series of online platforms (Cusumano, Gawer, 2002).
The cultural strengths of Google emanate from the highly competitive academic environment of Stanford University, where the two founders graduated less than 20 years ago. The culture at Stanford and now at Google place a high value on solving complex, very challenging theoretical problems with elegant yet powerful algorithms (Dollinger, 2006). Google also has a very selective culture, which concentrates on choosing only the most qualified candidates. This creates a culture of continual intellectual challenge and a strong focus on shared intelligence and knowledge (Badawy, 2008). It also forces a galvanizing effect into groups that have many of the world's smartest people in a given field. Contrary to this approach of unified effort through a shared intelligence base, Microsoft is a fragmented organization that thrives on internal competition and the continual effort to upstage other groups with more innovative and elegant algorithms and programming (Love, 2006).
With this background, the goal...
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