Google and Apple Google’s primary source of income comes from advertising. At the beginning of 2010 they owned about 70% of the search engine market. However, Google has branched out into other areas as well including smart phones, mobile apps, and online music…
Google has done this recently and continues to do so. Of course, as a company’s product line grows and diversifies, they will naturally have new competitors as well as a greater number of competitors overall. As Google’s offerings have grown from search engines and advertising to smarts phones and online music, new competitors like Apple have emerged and competition has increased between the two companies (yahoo.com). Google is able to compete with Apple because they have similar resources and a similar market (5-4). In regards to Google and Apple, one can witness how when Apple comes out with a new phone or app, Google will respond with a similar product (and vice-versa). These are known as strategic actions and responses (5-6). Similarly, Google and Apple engage in pricing decisions “to increase demand in certain markets during certain periods” (5-7). Pricing and other “fine-tuning” methods are known as tactical actions and are much easier to implement than strategic actions. While Google is a “first-mover” in the search engine market, it is a “second mover” in the mobile phone market (5-8). Being a first-mover has allowed them to gain a majority of the market share. As a second-mover in the mobile phone market Apple still owns and maintains dominance. ...
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