Sunday, 3 February 2008

Microsohoo !?

Google is now the dominant force in the internet. Microsoft is set to acquire Yahoo through a hostile bid; what is the scope of this deal? Will Microsoft try to heat up the competition with Google or is Microsoft moving towards the next generation of internet products?

This is partly a clash of business concepts, Microsoft that has lately been growing by acquisitions and Google who have grown more organically through bottom-up innovation. Google has demonstrated its ability to meet new market demands and also create new markets. Google is currently one of the most innovative companies in a dynamic industry, this should be a good framework for success...

The most likely reason for this huge acquisition is primarily to competet with Google in online advertising. The buzz in the industry has spoken of this for a while. Google has a dominant standing in the online advertising, and Microsoft is looking to catch up. For this new and innovative solutions will be required, competing by trying to copy Google will be hard or even pointless.

Will Microsoft try to compete in the same more or less unfair manner as they have done when it comes to software or will Microsoft pursue another strategy? Only time will tell...

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