Google and Apple in the Mobile Phone Market - Essay Example

Google has done diversity in its product line and continues to do so. Of course, as a company’s product line grows and diversifies, it 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 smartphones and online music, new competitors like Apple have emerged and competition has increased between the two companies (yahoo.com).

             Google can 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. However, by being a second-mover in the mobile phone and mp3 market Google is still able to learn from and try to improve upon Apple’s new products and technologies.