Case Study Google, Apple, and Facebook Struggle For Your Internet Experience
Case Study Google, Apple, and Facebook Struggle For Your Internet Experience
Read the case study at the end of Chapter 7 titled Google, Apple, and Facebook Struggle for Your Internet
Experience. Compare the business models and core competencies of Google, Apple, and Facebook.
Three Internet titans—Google, Apple, and Facebook—are in an epic struggle to dominate your Internet experience, and
caught in the crossfire are search, music, video, and other media, along with the devices you use for all of these things,
cloud computing, and a host of other issues that are likely central to your life. The prize is a projected $400 billion retail e
commerce marketplace where the major access device will be a smartphone or tablet computer.
Mobile devices with advanced functionality and ubiquitous Internet access are rapidly overtaking traditional desktop
machines as the most popular form of computing. Today, people spend more than half their time online using mobile
devices. These smartphones and tablets take advantage of a growing cloud of computing capacity available to anyone
with a smartphone and Internet connectivity. It’s no surprise, then, that today’s tech titans are so aggressively battling for
control of this brave new mobile world.
Apple, which started as a personal computer company, quickly expanded into software and consumer electronics. Since
upending the music industry with its MP3 player, the iPod, and the iTunes digital music service over a decade ago, Apple
took mobile computing by storm with the iPhone, iPod Touch, and iPad. Apple wants to be the computing platform of
choice for the Internet. Apple is the leader in mobile software applications, thanks to the popularity of the App Store, with
over 1 million apps for mobile and tablet devices. Applications greatly enrich the experience of using a mobile device, and
whoever creates the most appealing set of devices and applications will derive a significant competitive advantage over
rival companies. Apps are the new equivalent of the traditional browser. Apple still leads in this area.
Google, begun by Stanford computer science graduate students Larry Page and Sergey Brin as campus search engine
BackRub in 1996, quickly attracted attention for its unrivaled ability to return relevant search results. It continues to be the
world’s leading search engine. Advertising dollars follow page views, and Google’s search dominance quickly led to
advertising ascendency. Between AdWords, its keywordbased search advertising product; AdSense, the most popular
online advertising network; and DoubleClick, an intermediary between online publishers and ad networks that buys, sells,
and conducts performance reporting on display advertising space, Google dominates online advertising.
In 2005, Google had purchased the Android open source mobile operating system and founded the Open Handset
Alliance in order to compete in mobile computing. Google provides Android at no cost to smartphone manufacturers and
many different manufacturers have adopted Android as a standard. In contrast, Apple only allows its own devices to use
its proprietary operating system and the hundreds of thousands of apps it sells can only run on Apple products. Since the
first Android phone hit the market in October 2008, free, publicly available source code and permissive licensing have
propelled Android to the top place in mobile operating systems. By early 2014, Android was deployed on nearly 58
percent of smartphones in the United States and over 80 percent worldwide. Android has also become the most common
operating system on tablets worldwide.
Aggressively following the eyeballs, Google purchased Motorola Mobility Holdings for $12.5 billion in August 2011. This
move provided Google with 17,000 patents, with another 7,000 in the pipeline to help defend Android from the
smartphone patent wars. Google is also innovating in mobile hardware platforms with its Nexus 7 tablet, Google Glass (a
wearable computer with an optical headmounted display described in the Chapter 5 Interactive Session on
Technology), and plans for a modular smartphone that consumers can configure with different features, such as a camera
or heart rate monitor.
Whoever has the dominant smartphone operating system will have control over the apps where smartphone users spend
most of their time and builtin channels for serving ads to mobile devices, for example, on Googleowned YouTube and
the Google Maps app. Although Google search technology can’t easily navigate the mobile apps where users are
spending most of their time, Google is starting to index the content inside mobile apps and provide links pointing to that
content featured in Google’s search results on smartphones.
The costperclick paid for mobile ads has trailed desktop ads. Google instituted a design change to merge PC ads and
mobile ads and present a cleaner mobile search page. Users were increasingly consenting to click mobile ads and shop
from their smartphones and tablets. Both changes began to strengthen overall ad prices.
Furthermore, with its advertising networks still contributing 95% of its revenues, Google had to make sure that Facebook
did not eclipse it as an advertising vehicle. It launched Google+ (Google Plus) in mid2011, its fourth foray into social
networking. With 300 million active users by March 2014, Google+ has surpassed Twitter. Rather than a single Web site,
Google hopes to meld the social experience across all of its sites. Google+ has morphed from a social network into a
gateway to Google’s package of services like Gmail, Google Docs, Google+ network, maps, hotel reservations, and more.
With Google challenging Apple on every front, Apple’s profit growth has slowed in the past couple of years. Although
Apple has a number of advantages in the battle for mobile supremacy, it faces strong competition in both the U.S. and
developing markets like China from Samsung Android phones that have larger screens, and much lower prices. Sales of
iPhones were slowing until it introduced the iPhone 6 iOS phone and Apple Watch in September 2014. Two million
phones were sold in the first two weeks, twice the rate of previous iPhones. The iPhone 6 comes in a large screen version
to compete directly with Samsung. Apple has on its side a history of marketmoving innovations, and a loyal user base
that has steadily grown and is very likely to buy future product and offerings.
Apple has a legacy of innovation on its side. In 2011, it unveiled the potentially marketdisrupting Siri (Speech
Interpretation and Recognition Interface), a combination search/navigation tool and personal assistant. Siri uses Yelp for
local business searches, tapping into its user recommendations and ratings. For factual and mathematical questions, it
enlists Wolfram Alpha. Siri promises personalized recommendations that improve as it gains user familiarity—all from a
verbal command. Customer response has been mixed. Google countered by quickly releasing its own AI tool, Google
Now.
Facebook, founded by Mark Zuckerberg and several Harvard friends in 2004, provided a way for local students to meet
and share information online. Today it’s the world’s largest social networking service, with nearly 1.3 billion monthly active
users. People use Facebook to stay connected with their friends and family and to express what matters most to them.
Facebook Platform enables developers to build applications and Web sites that integrate with
Facebook to reach its global network of users and to build personalized and social products.
Facebook has persistently worked on ways to convert its popularity and trove of user data into advertising dollars, with the
expectation that these dollars will increasingly come from mobile smartphones and tablets. Over 750 million people
around the world used Facebook on an average day, and threequarters of them log on using mobile devices. By the first
quarter of 2014, mobile advertising accounted for 59 percent of Facebook’s revenue, with many of those ads highly
targeted by age, gender, and other demographics. Facebook is now a serious competitor to Google in the mobile ad
market and is even trying to compete with emerging mobile platforms, having purchased Oculus VR Inc., a maker of
virtualreality goggles, for $2 billion.
In March 2013, Facebook overhauled its home page to increase the size of both photos and links and allow users to
create topical streams. Job number one was to declutter smartphone screens. Marketers love larger pictures, both for
their prominence and their greater persuasive impact. Job number two was to give advertisers more opportunities, and
more interest information, with which to target market. A “personalized newspaper” with, for example, an oped feed
featuring followed commentary pages, a sports section tailored to preferred events and teams, and a hometown news
feed, will swell Facebook’s database with useful tidbits. Whether users oblige remains to be seen; a popular app,
Flipboard, already serves users interested in creating topical and publicationbased streams.
Next, Facebook introduced a mobile application suite to replace the typical smartphone home screen. Facebook Home is
an interface running on top of the Android operating system that essentially turns an Android mobile device into a
Facebook phone. Home replaces the smartphone’s typical cover screen with Facebook content, such as photos,
messages and status updates. Home still provides access to apps on the phone, but the experience is centered around
Facebook.
About the same time, Facebook also launched a new search tool to challenge Google’s dominance of search. Graph
Search mines Facebook’s vast repository of user data and delivers results based on social signals, such as Facebook
“likes,” and friend recommendations. It’s a more “social” way of searching than Google. If the desire for friendbased
recommendations outweighs users’ reluctance to divulge more personal information, Graph Search may be a major
revenue driver. While users may be enticed to checkin, and then assign stars or review local restaurants and styling
salons, they are unlikely to reveal sensitive data such as their doctors’ identities or where their children go to school.
Moreover, entering “liked” movies, books, and music, etc. takes time. Will users disclose sufficient data for searches to
accurately list and rank results? With time and responsiveness to user practices, Facebook may uncover niche areas at
which it excels. Even if it cannot directly rival Google’s advertising muscle, it should be able to chip away at its dominance.
Facebook claims that using Graph Search to target Facebook users for advertising is forbidden, but no policy for
supervision and sanctions has been revealed. Facebook is already under Federal Trade Commission (FTC) scrutiny, with
independent privacy audits mandated for the next twenty years. Trust is the linchpin upon which Facebook’s strategy
depends. Eroding user trust means less data to generate relevant search results and less impetus to use Facebook to
connect to thirdparty sites and services. Facebook must tread carefully. But if Facebook can succeed in making itself
synonymous with mobile access, the company could very well compete for global advertising dominance, with much of
the world’s population just coming on line—on inexpensive Android smartphones.
Sources: EricBrian X. Chen, “Apple’s War on Samsung Has Google in Crossfire,” New York Times, March 30, 2014 and
“For Hints at Apple’s Plans, Read Its Shopping List,” New York Times, February 23, 2014; Reed Albergotti, “Facebook
Net Triples, Sales Up 72%,” Wall Street Journal, April 23, 2014; Sarah Frier, “Facebook Bets $2 Billion That Oculus
Headset Will Anchor Social Life,” Bloomberg Business Week, March 26, 2014; Farhad Manjoo, “The Future of Facebook
May Not Say ‘Facebook’,” New York Times, April 16, 2014; Jim Edwards, “Here Is The Little-Known Way Google Juices
User Traffic On Google+,”Business Insider, March 31, 2014; “Android Grows to Almost 60% US Smartphone
Marketshare in Q1 as iOS Drops,” 9to5google.com, accessed May 6, 2014; Evelyn M. Rusli, “The Challenge of
Facebook’s Graph Search,” Wall Street Journal, January 16, 2013; Matthew Lynley and Evelyn M. Rusli, “What Is
Facebook ‘Home’?”, Wall Street Journal, April 4, 2013; Somini Sengupta, “Fortunes of Facebook May Hinge on
Searches,” New York Times, January 14, 2013, “Facebook Shows Off New Home Page Design, Including Bigger
Pictures,” New York Times, March 7, 2013, and “Facebook Software Puts It Front and Center on Android Phones,” New
York Times, April 4, 2013; John Letzing and Amir Efrati,“Google’s New Role as Gadget Maker,” Wall Street Journal, June
28, 2012.
1. Business Model:-
o Google is the biggest advertising company in the world.
o Google’s business model makes money by selling ads on all the free Internet services it provides
to the world.
o Apple’ business model is built on the foundation of the devices it sells and its integrated model.
o Facebook is the leading Social Networking Site(SSN) and its mission is to make the world more
open and connected.
o Facebook helps Internet users stay connected with their friends and families.
2. Core competencies:-
o Page rank is one of the innovative and best indexing mechanism in the search engine industry
mechanism in the search engine industry which provides the most accurate results to the user.
o Apple: its innovative designs and technology based on software.
o Facebook: social graphs and networks. They were able to build a product where people keep
pulling in friends and family keeping the social network growing.
Sources: EricBrian X. Chen, “Apple’s War on Samsung Has Google in Crossfire,” New York Times, March 30, 2014 and
“For Hints at Apple’s Plans, Read Its Shopping List,” New York Times, February 23, 2014; Reed Albergotti, “Facebook
Net Triples, Sales Up 72%,” Wall Street Journal, April 23, 2014
Class,
2. Name and describe the principal technologies and trends that have shaped contemporary
telecommunications systems.
Internet 1/26/2016 12:49:15 PM
Professor Abuarqoub
Class,
1. What difference would it make to a business or to an individual consumer if Apple, Google, or Facebook
dominated the Internet experience?
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Web 2.0
It is the “writable” phrase of the World Wide Web with interactive data. Unlike Web 1.0, Web 2.0 facilitates
interaction between web users and sites, so it allows users to interact more freely with each other. Web
2.0 encourages participation, collaboration, and information sharing. Examples of Web 2.0 applications are
Youtube, Wiki, Flickr, Facebook, and so on.
Web 3.0
It is the “executable” phrase of Word Wide Web with dynamic applications, interactive services, and “machine-
to-machine” interaction. Web 3.0 is a semantic web which refers to the future. In Web 3.0, computers can
interpret information like humans and intelligently generate and distribute useful content tailored to the needs of
users. One example of Web 3.0 is Tivo, a digital video recorder. Its recording program can search the web and
read what it finds to you based on your preferences.
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Case Study 1/23/2016 11:35:48 PM
Professor Abuarqoub
Class,
I want to remind you to read all announcements and E-mails especially that include the Discussion Grading
Policy. Please answer or respond to one of the following questions, which related to our week discussion
topic:
1. Why is mobile computing so important to these three firms? Evaluate the mobile strategies of each firm.
2.
3. https://prezi.com/jvowu1zca86b/ecb30703/
http://www.slideshare.net/niz73/apple-google-and-ms
Mobile computing consist in doing activities which involve internet without being fixed to a
particular place but at the discretion of the users. This features provides a very large flexibility, portability and
efficiency on the same time, providing the future of the internet technology, a domain with high
competition. That’s why for these 3 firms, mobile computing is very important, as a good mobile
computing strategy can increase the revenue of profit for every company. Google, Apple and
Facebook especially have implemented excellent strategies related to mobile users, as all
of them proved to be more focused on user accessibility features for their customers to improve the
intimacy between customer and the company.
Google’s mobile strategy is based on advertising that allows companies to post their products and
services advertisement on Google which provides Android at no cost. Android is a free open source
operating systems for mobile phones. Also Google have now its own devices, like Apple, called
Nexus 7 Tablet and they also owns YouTube and also a very useful app: Google Maps on mobile
phones. These are very used and highly liked by users. In order to compete with Facebook, Google
introduce Google Plus and marketed Twitter as a social media network. Apple is the pioneer in
the mobile industry. Mobile computing was actually started with iPhone, iPod and iTunes touch.
As Google provides Play Store, Apple provides its users Apps Store. However, compared with
Android, the Apple’s operating system, IoS, is more complicated, less user friendly and highly
restrictive to their users.
Meanwhile Facebook has a dedicated app for smartphones, both available on AppsStore and Play Store
providing mobile advertisement on this page. The Facebook’s userinterface displays messages and photos from
Facebook users. It also have a Graph search allowing users to search for friends.
3. What is the significance of search to the success or failure of mobile computing? How have Apple and
Facebook attempted to compete with Google? Will their strategies succeed?
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4. Which company and business model do you think is most likely to dominate the Internet and why?
http://kingmis123456.blogspot.com/2015/11/chapter-7-telecommunications-internet.html
http://myassignmenthelp.info/assignments/marketing-assignment-business-model-apple-microsoft-google-failure-mobile-computing/
Network Neutrality
Class,
1. How do social search, semantic search, and mobile search differ from searching for information on the Web
using conventional search engines?
2. What is network neutrality? Why has the Internet operated under net neutrality up to this point in time?
3. Who’s in favor of network neutrality? Who’s opposed? Why would a change in the policy of network
neutrality matter to these three companies?
Questions:1. What is network neutrality? Why has the Internet operated under net neutrality up to this point in time?
Network neutrality is the idea that Internet service providers must allow customers equal access to content
and applications regardless of the source or nature of the content. Presently the Internet is indeed neutral: all
Internet traffic is treated equally on a first-come, first-serve basis by Internet backbone owners. The Internet is
neutral because it was built on phone lines, which are subject to ‘common carriage’ laws. These laws require
phone companies to treat all calls and customers equally. They cannot offer extra benefits to customers willing
to pay higher premiums for faster or clearer calls, a model knows as tiered service.
https://devry.vitalsource.com/#/books/9781323187944/cfi/6/128!/4/2/8/14/16/2/2/4@0:0
Given a business scenario, examine and explain the management issues as well as difficulties, and analyze the
applicability of potential solutions surrounding one of the following:
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Discussion 2:-
In this discussion we want to answer the question: "What are the principal components of telecommunications networks and key networking
technologies?" Let's begin by describing the features of a simple network.
https://devry.vitalsource.com/#/books/9781323187944/cfi/6/124!/4/2/10/10/10/2@0:96.6
Describe the features of a simple network and the network infrastructure for a large company.
A simple network consists of two or more connected computers. Basic network components include computers, network interfaces, a connection medium, network operating
system software, and either a hub or a switch.
Client/Server computing, the use of packet switching, and the development of widely used communications standards such as TCP/IP are the three technologies that have
shaped contemporary telecommunications systems.
Client/Server computing has extended to networking departments, workgroups, factory floors, and other parts of the business that could not be served by a centralized
architecture. The Internet is based on client/server computing. Packet Switching technology allows nearly full use of almost all available lines and capacity. This was not
possible with the traditional dedicated circuit-switching techniques that were used in the past. Having a set of protocols for connecting diverse hardware and software
components has provided a universally agreed upon method for data transmission. TCP/IP is a suite of protocols that has become the dominant.
1. What are the principal components of telecommunications networks and key networking technologies?
A simple network consists of two or more connected computers. Basic network components include computers, network interfaces, a connection medium,
network operating system software, and either a hub or a switch. The networking infrastructure for a large company includes the traditional telephone
system, mobile cellular communication, wireless local area networks, video-conferencing systems, a corporate Web site, intranets, extranets, and an array
okf local and wide area networks, including the Internet.
Contemporary networks have been shaped by the rise of client/server computing, the use of packet switching, and the adoption of Transmission Control
Protocol (TCP/IP) as a universal communications standard for linking disparate networks and computers, including the Internet. Protocols provide a common
set of rules that enable communication among diverse components in the telecommunications network.
1. What are the principal components of telecommunications networks and key networking technologies?
Describe the features of a simple network and the network infrastructure for a large company.
The networking infrastructure for a large company relies on both public and private infrastructures to
support the movement of information across diverse technological platforms. It includes the traditional
telephone system, mobile cellular communication, wireless local-area networks, videoconferencing systems,
a corporate Web site, intranets, extranets, and an array of local and wide-area networks, including the
Internet. This collection of networks evolved from two fundamentally different types of networks:
telephone networks and computer networks.
Name and describe the principal technologies and trends that have shaped contemporary telecommunications
systems.
Client/Server computing, the use of packet switching, and the development of widely used communications
standards such as TCP/IP are the three technologies that have shaped contemporary telecommunications systems.
Client/Server computing has extended to networking departments, workgroups, factory floors, and other parts of
the business that could not be served by a centralized architecture. The Internet is based on client/server computing.
Packet Switching technology allows nearly full use of almost all available lines and capacity. This was not possible
with the traditional dedicated circuit-switching techniques that were used in the past. Having a set of protocols for
connecting diverse hardware and software components has provided a universally agreed upon method for data
transmission. TCP/IP is a suite of protocols that has become the dominant.
Class,(1.28.16)
1. Describe the features of telecommunications networks, and identify key networking technologies.
The five traditional transmission media formats: twisted-pair copper used for analog voice telephony,
coaxial cable, microwave and satellite in the context of traditional carrier and enterprise applications,
http://www.informit.com/articles/article.aspx?p=683070
Network 1/26/2016 12:39:48 PM
Class,
1. What are the principal technologies and standards for wireless networking, communications, and Internet
access?
Type Area
Local area network (LAN) Up to 500 meters (half a mile); an office or floor of a building
Campus area network (CAN) Up to 1,000 meters (a mile); a college campus or corporate
facility
A local area network, or LAN, consists of a computer network at a single site, typically an individual office
building. A LAN is very useful for sharing resources, such as data storage and printers. LANs can be built with
relatively inexpensive hardware, such as hubs, network adapters and Ethernet cables.
The smallest LAN may only use two computers, while larger LANs can accommodate thousands of computers.
A LAN typically relies mostly on wired connections for increased speed and security, but wireless connections
can also be part of a LAN. High speed and relatively low cost are the defining characteristics of LANs.
http://study.com/academy/lesson/types-of-networks-lan-wan-wlan-man-san-pan-epn-vpn.html
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Class,
1. Distinguish between a LAN, MAN, and WAN. What would influence a company to select one over the others?
2. Describe how the Internet works, and explain how it provides business value.