1.How does the Internet industry converge? What other industries are involved?
It has initially been a governmental research tool. In 1994, the internet has been publicly accessed. Four years after the public initiation, more than 50million users were online and followed by 2 billion users in 2009. Internet is becoming as the melting point of media and entertainment, business and workforce collaboration service, telecommunication, knowledge, personalized service.
2.What were the main differences in the starting positions of Apple, Google and Microsoft in 2000?
Apple – Digital Media
Both hard and software played crucial roles, produces extraordinary designs and user-friendly products.
Google – search and communication franchise for future expansion
Microsoft – anchored itself in entertainment & building a presence with future-oriented servers and platforms
3.Compare the different convergency strategies of the 3 players between 2000 and 2010
Apple shows consistency in its focus on the multimedia market. Retail strategy increased Apple’s long term advantage on the consumer market, to gain brand awareness. Apple made an expansion of the iPod and iTunes to consolidate computers with music devices. The growth also triggered by the partnership with several companies. For mobile, Apple made collaboration with Motorola and acquired technology for further development. In 2007, Apple entered mobile device market with its iPhone and achieved sustainable competitive advantage with its application running through Apple Store.
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Google focuses on open source for product/service creation and information control. The major move by Google is the launch of Adwords followed by the important step in introducing cost-per-click as a payment method which increased Google revenue in advertising. The important moves Google had taken were the introduction of Google Labs 2002 to forecast adoption rates for products, launch of AdSense in 2003, Google going IPO in 2004, Google’s acquisition of Android in 2005, the launch of YouTube in 2006 and the release of Android platform in 2007 which really helped Google to leap into higher value. Google pursued approaches similar to Apple’s, which is securing applications.
Microsoft failed to follow a steady line in the game of Internet convergence. Microsoft constantly changes its systems and market focus. The main profit area of Microsoft is still its operating systems for computers.
