Chapter 6: Case Study: Google, Apple, and Microsoft Battle for Your Internet Experience

1. Define and compare the business models and areas of strength of Apple, Google, and Microsoft.

Apple: Its business model focuses on centralized control of almost all aspects of its hardware and software. It believes smartphones and tablets should have proprietary standards and be tightly controlled. It only allows apps from its App store, that have been vetted by the company, to be loaded to its products. Apple has a very loyal user base that has steadily grown and most likely will stay with Apple products in the future.

Google: Its business model has always focused on the Internet and the Web. It began as one of many search engines. It quickly ran away from the pack with its copyrighted PageRank search algorithm which returns superior search results for Web users. It also has developed extensive online advertising services for businesses of all sizes. Google provides value to the user by using an inexpensive, flexible infrastructure to speed up Web searches and provide its users with a vast array of Web-based services and software tools.

Microsoft: Its business model originally focused on the desktop computer running the Windows operating system and Office desktop productivity applications. The company and its products are staples for businesses and consumers looking to improve their productivity with computer-based tasks. While it is trying to expand its presence on the Internet, it still must try to keep customers bound to the desktop computer.

2. Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings of each firm.

This case demonstrates the fundamental paradigm shift from primarily desktop PC computing to mobile computing devices accessing services through the Internet that is currently taking place. This environment is projected to be a $400 billion e-commerce marketplace where the major access device will be a mobile smartphone or tablet computer. Each company is vying for the lead in a world of ubiquitous computing based on Internet access. The leader stands to make untold profits from advertising but in order to do that, the leader needs to claim the largest user base.

Apps greatly enrich the experience of using a mobile device. Whoever creates the most appealing set of devices and applications will derive a significant competitive advantage over rival companies.

Apple: by far the current leader in the number of apps users can download – over 250,000. Apple takes a 30% cut of every app purchased.  They use a closed proprietary system and apps that only provide “one way in.”

Google: aggressively following the eyeballs. It has introduced the Android mobile operating system for a host of non-Apple devices. The Droid system adds features that Apple devices don’t have – the ability to run multiple apps at the same time. They use an open non-proprietary system that allows users to grab apps from any source.

Microsoft: trying to partner with Apple and make Bing the default search engine on both the iPhone and Apple’s Web browser. That would provide Microsoft with a much needed boost to its fledgling search service. Otherwise, Microsoft doesn’t bring much to the table in mobile computing.


3.What is the significance of applications and app stores to the success or failure of mobile computing?

Apps greatly enrich the experience of using a mobile device, and without them, the predictions for the future of mobile Internet would not be nearly as bright. Whoever creates the most appealing set of devices and applications will derive a significant competitive advantage over rival companies.

Apple makes money on each app sold through its App store. That’s worth billions of dollars to the company. Even if an app is free, Apple still has an advantage because users must visit Apple’s App Store and the company is betting consumers will buy something else, other apps or entertainment services, while visiting the store. However, app developers have complained that making money is too difficult. Apple has blocked some apps from its mobile devices, namely Google’s voice mail management program, Google Voice. Apple claimed it violated user privacy.

Apps for the Android system used on non-Apple devices are available from many different sources. Google has worked very hard to increase the number of apps available for Droid-based mobile devices by encouraging developers to increase the number of apps. Google also makes money by embedding advertising in some of the apps used on Droid-based devices.

4.Which company and business model do you believe will prevail in this epic struggle? Explain your answer.

The mobile computing market has started to look like a galactic war of epic proportions where no clear winner can be stated till date. Although the market is still relatively young the first mover advantage is still not with a single competitor. To predict a clear winner in such a scenario is difficult however there are certain qualities in one of the players that can make it a winner in this battle of equals.

Google:  The search engine giant has a lot of positives going for it rather than the negatives. The clear positives that can make it a winner are:

1. A well-established name is something which not a lot of players can boast of but Google is one of them, although Apple and Microsoft have chartered territories of their own but Google can fight them out both as an equal if not better.
2. The Company has entered into all the three basic markets of mobile computing including hardware, operating system and the application stores. Their hardware is something which a few competitors can best , however the Android operating system has taken the market by storm and the app store which comes with it is a mean bully in itself (Android 2012)
3. Google has also bet on of the most time relevant feature of the mobile computing market, the App store, and this is the biggest advantage which the Google business model gives it and makes it the prime contender for the number one position. With hundreds of applications already online and hundreds more in the development stage Google has started to take a sort of lead on the other players in the race to be number one. And this may not be decisive right now but with Google’s recent acquisition of application developers and their heavy R&D expenditure on the same, it is just a matter of time before it will take out companies like Apple and Microsoft. (Android 2012)

Although the Google bandwagon is on its way there are certain roadblocks that it can face that can halt its march and some of them are:

1. The Google brand is big but it still lacks the appeal of an Apple product and this many say is one of the most major difference between the two.
2. The Android system although perfected to a large extent still has a few errors in the new versions that can hamper the growth of the operating system and this where a competitor like Microsoft can prevail over the Company
3. Lastly it can be said that Google’s move towards a common mobile application platform can itself backfire and could increase competition from local app players which can affect the overall profitability from this step.

Thus it can be said that Google does have a lot of positives that can help it in the market and if it can take care of the negatives and maybe tweak the one platform stance, it can just pull ahead of Apple and Microsoft in this battle of the behemoths

5. What difference would it make to you as a manager or individual consumer if Apple, Google, or Microsoft dominated the Internet experience? Explain your answer.

Right now Apple leads Google in the number of apps available to users. That gap is closing quickly thanks to Google’s improvements of the Android operating system and its encouragement to app developers. Open, non-proprietary systems historically have beat closed, proprietary systems because developers and users have a wider range of choices. Business managers must try to forecast which platform will provide the right choices for employees. Consumers must choose which platform will best fulfill their personal needs for the next two to three years. Switching costs play into both scenarios, not just in terms of phone purchases but the price of apps. Once a user purchases and adjusts to using a certain platform it’s difficult and expensive to switch to a whole different system.

Chapter 5: Asking the Customer by Asking the Database

Question 1 :

Why would a customer database be so useful for a company such as forbes or kodak ? what would happen if these companies had not kept their customer data in database ?

 This very useful for company forbes such as in learn details about each if its individual readers by examining forbes`s entire reader population. By this way they can easily understand each individual who interacts with its brand. These details help forbes advertisers target their campaigns more precisely and also help forbes publication increase their circulation. As for kodak company, its help to consulate the data on all of its marketing activities’, including customers target, campaign plans, budgets, lists, and result. Beside that, its help kodak to able to target each type of customer more preciously  with its retail packaging  product description, and advertising placements. It also useful for kodak by easy measure the actual effect of promotional offers, customer segmentations, and messaging across all of its channel.

 If the both forbes and kodak company not kept their customer data in database will cause forbes unable to analyze their customer data and very difficulty to find out subsets of the readers population as a way of learning about the entire readership. As for kodak company, they unable to maintain such a huge customers data from direct purchase and registration on kodak kodak's web site and photo sharing site and interaction from social networks so that they unable to target each type of precious customer and can result in cannot measure they actual effect promotional offer.

Question 2 :

List and describe two entities and several of their attributes that might be found in Kodak’s marketing database.

     There are two entities found in Kodak’s marketing database which is supplier and part. Oracle customer database and third-party database vendors is the example of supplier who is collect the Kodak’s customer database and transfer it to the Kodak’s as a output. However, part is Kodak’s which receive the database from the supplier and they have to pay money for the supplier to analyzing the customer database. Besides that, they have several attributes that might be found in Kodak’s marketing database. First and foremost, Oracle customer database, which maintain data on 50 million customers compiled from direct purchases and registrations on Kodak’s Web site and photo sharing site,customer-service interaction, product registrations from retail store purchases, and interactions from social networks. This situation will help Kodak’s understanding their customer trend and they are able to do renovate for their products and services. In addition, third-party database vendors will supply customer data with demographic and psychographic information, so that Kodak’s  can know the customer wants and try their best to satisfying the customer preferences. Furthermore, the Kodak’s company has consolidated data on all of its marketing activities, including customer targets, campaign plans, budgets , list, and results. On the other hand, Kodak’s has been able to replace its crude customer “personas” with detailed in depth profiles of customer groups and buying patterns based on the actual data. Armed with that information, Kodak is able to target each type of customer more precisely with its retail packaging, product descriptions , and advertising placements. Lastly, Kodak can measure the actual effect of promotional offers, customer segmentations, and messaging across all of its channels with the customer database.

Question 3

How did better data management improve each company’s business performance? Give examples of two decisions that were improved by mining these customer databases.

    Data management can improve each company’s business performance by analyzing customer database , supplier database and other business partnership database. From the customer database, the company can finding out about their customer’s purchasing habits, opinions and preferences. Armed with these information, company is able to capture the customer need and continuously update their product and service to fulfill the customer wants. Besides that, they can also create new products and services to stimulate the existing market. Moreover, profiling individual customers and groups of customer to market more effectively and to increase sales. The company can do segmentation market, thus they will more easier to manage the data record. With the precise database the company are able to set a target market, so that they can maximize the profit. Nevertheless, customer database will changing the way the company run  their business to improve customer service. The company will according to the situation of the customer survey to renew the business operation to convenience the customer.

In addition, supplier database also important for improving company business performance. Understanding more about your supply chain will help you establish priorities for working more closely with customers and suppliers.Businesses that get closer to their suppliers are more likely to get better performance out of them. There are technological and logistical

steps that can be taken, which we will review shortly – but at the heart of getting closer to a key supplier is the need to understand how that supplier works and who its key personnel are, and then build a two-way trust between the two firms. A small firm that will sack a supplier instantly upon being offered a marginal cut in prices is not likely to get the best out of its new

supplier – who will (inevitably) reason that it inturn faces being sacked as soon as a better price comes around the corner. Therefore, data management have to make a choice to choose the right suppliers. There are few benefit that choose the right suppliers will getting control of stock and production. A critical factor in company supply chain is capacity to hold stock of purchased goods or raw materials. If company cannot hold much stock,then they will need suppliers that are able to deliver new stock in small quantities at short notice. On the other hand, if company are able to bear the cost of holding significant stocks, this may enable the company to save money by buying in bulk, or to take advantage of price fluctuations in the marketplace. However, how the company handle stock can have a massive impact on their customer service and profit margins. Many businesses are now concentrating more on efficient stock management to cut warehousing costs while still being able to meet customer demand. To be able to manage company stock more effectively, the company will need to gather accurate information about the volume of orders that company business deals with. This will enable the company to assess how much stock to hold, how much to keep in reserve, how often to replenish etc. Besides that, for many businesses, there is a lot of scope to smooth and simplify production processes to save time, cut unnecessary costs and become more competitive as a result. Automating the links between company various production processes means that information can flow more quickly. Once company were identified logjams and established what is causing delays, you can then remove unnecessary obstacles and streamline processes.

Lastly, at its simplest, a successful business partnership can mean that company start to win

business that company would not have won without the partnership. Thus, data management play a vital role to keep partnership record and continuous coordinate with each other. Each partner can offer the other partner access to or an introduction to new markets. Therefore, the company can access to a new market to introduce their product so that they can also increase the market share. Besides that, one partner is able to add value to a product or service that the other partner can then use to create new business. The partnership can share their technologies and knowledge to each other to improve every level of department, so that they can work more efficiency and effectiveness.

Furthermore,data mining derives its name from the similarities between searching for valuable business information in a large database and mining a mountain for a vein of valuable ore. There can divide into two: Automatic prediction of trends and behaviors and Automatic discovery of previously unknown patterns. In the Automatic prediction of trends and behaviors,data mining automates the process of finding predictive information in large databases. Questions that traditionally required extensive hands-on analysis can now be answered quickly and directly from the data. A typical example of a predictive problem is targeted marketing. Data mining uses data on past promotional mailings to identify the targets most likely to maximize return on investment in future mailings. Other predictive problems include forecasting bankruptcy and other forms of default, and identifying segments of a population likely to respond similarly to given events.

However, within Automatic discovery of previously unknown patterns, data mining tools sweep through databases and identify previously hidden patterns. An example of pattern discovery is the analysis of retail sales data to identify seemingly unrelated products that are often purchased together. Other pattern discovery problems include detecting fraudulent credit card transactions and identifying anomalous data that could represent data entry keying errors. In the short word, mining customer database can improve the sales market and predict the customer need and wants in the future, so that the company can forecast the potential market to maximize profit.

Chapter 4: Interactive Session : Technology UPS Competes Globally with Information Technology

Question 1

What are the inputs, processing and outputs of UPS’s package tracking system?

Answer

Inputs of UPS’s package tracking system is scan bar-coded label attached to a package which contains detailed information about the sender, the destination and when the package should arrive.

The processing of UPS’s package tracking system is before the package is picked up, information from the “smart” label is transmitted to one of UPS computer centers in Mahwah, New Jersey or Alpharetta, Georgia and sent to the distribution center nearest its final destination.

The output of UPS’s package tracking system is customers download and print their own labels using special software provided by UPS or by accessing the UPS Web site.

Question 2

What technologies are used by UPS? How are these technologies related to UPS’s business strategy?

Answer

UPS has used the dispatchers in computer center to download the label data and use special software to create the most efficient delivery route for each driver that consider traffic, weather condition and the location of each step. By using the software, UPS estimate it save 3 million fewer gallon of fuel of every year. This technology related to UPS’s business strategy which is best services and lowest rates.

Moreover, to accomplish business strategy which UPS want to increase cost savings and safety, UPS are train driver to use “340 Methods” to optimize the performance of every task from lifting and loading boxes to selecting a package from a shelf in the truck.

UPS has also used handheld computer called Delivery Information Acquisition Device (DIAD) which can access wireless cell phone network. Drivers can know their task by handheld, the DIAD has a function which is automatically captures customers signatures.

Question 3 

What strategic business objective do UPS information system address?

Answer

The strategic busin

ess objective that UPS information system address were provided best customer services to the customers. Every year UPS spend more than $1 billion to maintain high level of customer services.

UPS also focus on improve the efficiency of the performance. UPS invest and use a lot of systems or software to increase the company performance. For example, Package Tracking System, UPS using this system to monitor and re-route package throughout the delivery process. The UPS can always improve operational efficiency.

The others strategic business objective is lower cost. UPS was keeping costs low to compete with competitors like FedEx. By using information system in UPS, it can reduce cost of operation.

Question 4

What would happen if UPS’s information systems were not available?

Answer

If UPS’s information systems were not available, UPS will face some problems. The process of providing information to customer will become slow. The customer cannot receive the information rapidly.

The operation of UPS will also become slow. Because UPS is using technology and information to monitor and control the operation when information system does not available, it will effect to the operation of the organization.

Moreover, UPS need to spend more on cost. The cost to deliver the product and monitor the performance of driver will increase when information system does not occur.

Chapter 3: Soundbuzz_s Music Strategy for Asia Pacific

Q1 : Analyze Soundbuzz and its business strategy using the competitive forces models. What strategies did it develop for dealing with competitive forces?

There are four concepts of the competitive forces models: new market entrants, substitute products and services, suppliers, and customers. In terms of customers, Soundbuzz were really well responded to situation that they faced. When they launched B2C model, they found that because of customers` behavior (customers are seeking to download music freely) they cannot make much margin compared with the time when they used B2B model. So they aim other business as their customers. In terms of products and service, they serviced new encrypted MP3 format which makes them be able to sell music in their web sites. Also, they started to treat the music video contents which never treated on-line before. Finally, they launched ISPs billing systems for customers, which makes customers easily purchase their products.


Q2 : What are the critical elements for an online music service? Using the value chain model, analyze Soundbuzz's business processes.

Administration and Management : Online and Mobile music company.

Technology : Source from local and independent record label and content is secured using digital right management technologies consisting of web server , license server , database server and media server. 

Procurement : Internet and finance industries

Inbound logistic	Operations	Sales and Marketing	Service	Outbound Logistic
Mobile music company	Headquarters in Singapore has more than 750,000 tracks and 500,000 mobile music derivative in database source from about 60 local and independent record labels	Finance industries partnership with other global record and develop software	Download music on MP3 format. Music player manufacturer Broadband service	Operates 13 markets under own brand and partnership with digital music player manufacturer, broadband provider and telecommunication carriers

Q3 : Why did Mototrola acquire Soundbuzz? What synergies will be created through the partnership? 

Through its MOTOMUSIC service, Motorola has more than two years experience delivering mobile music to consumers with its carrier customers in China, Hong Kong and Taiwan. The acquisition of Soundbuzz allows Motorola to expand MOTOMUSIC beyond China, into India, Southeast Asia, Australia and New Zealand. With well over 90 percent of all digital music content in Asia sold via mobile channels, a level expected to remain in the coming years, Motorola's strength in music delivery will help its carrier customers access this growth opportunity.

The expected timetable for completing the proposed transaction between Motorola and Soundbuzz, future financial and operating results, benefits and synergies of the transaction, future opportunities for the combined company and products, any other statements regarding Motorola's or Soundbuzz's future expectations, beliefs, goals or prospects and any statements that are not statements of historical facts might be considered forward-looking statements. While these forward-looking statements represent managements' current judgement of future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those stated in the forward-looking statements. Important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, include:

     i. the parties' ability to consummate the transaction.

     ii. the conditions to the completion of the transaction may not be satisfied, or the approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule.

     iii. the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction. 

     iv. the possibility that the parties may be unable to achieve expected synergies and operating efficiencies within the expected time-frames or at all.

     v. Motorola's ability to successfully integrate Soundbuzz's operations and technology into those of Motorola and the possibility that such integration may be more difficult, time-consuming or costly than expected. 

     vi. revenues following the transaction may be lower than expected. 

     vii. operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction.

     viii. the retention of certain key employees at Soundbuzz. 

     ix. the other factors described in Motorola's Annual Report on Form 10-K for the year ended December 31, 2006 and its subsequent reports filed with the SEC. Motorola assumes no obligation to update or revise any forward-looking statement in this press release, and such forward-looking statements speak only as of the date hereof.


Q4 : Explore the Soundbuzz Website (www.soundbuzz.com). Briefly describe its products, technology platform, payment methods and revenue models.

Product :
     - downloadable music and video.
     - digit right clearance. 
     - acquisition of licenses from music publisher and recording company. 
     - music video.

Technology platform : 
     - bundled with creative 's MP3 players.
     - Windows Media Player 10.

Payment methods : 
     - multiple billing channel through Internet Service Provider bills. 
     - mobiles operator bills to its customers.
     - Trivnet payment solution. 
     - making micro payment.

Q5 : Do you think Soundbuzz is successful? What are the things it can do to improve its business model? What can it learn from iTunes?

No. Along with the dramatic demise of Motorola’s mobile phone business in the past two years, Soundbuzz now also faces closure of its own. It’s an ironic end for a company that seemed ahead of its time when it came out selling legit music in 1999 - at the century of illegal downloads.

Many were surprised at the time, when Soundbuzz CEO SudhanshuSarronwala, a former MTV stalwart, managed to court the music labels even when they were more interested in blocking people from ripping CDs. Its music collection was built up very fast, providing users in Singapore with a legit alternative to pirated songs.

But soon, the competition came for “Suds” and his company. Though Apple iTunes is still not officially here in Singapore now, Nokia has launched its own music store and Sony Ericson has partnered with SingTel to offer a direct-to-mobile music download service too.

Soundbuzz, meanwhile, was a much smaller player and had a less extensive music collection. Plus, it somehow only supported the Internet Explorer browser, likely because of its Windows Media back-end, which kept out a lot of users.

The final mistakes is the sale to Motorola, a company that invented the cellphone, but somehow failed to manage its own cellphone business due to poor management and decision making .

Soundbuzz shall support the popular browser like Google chrome, Mozilla Firefox, Opera and Safari and expand its music collection. This will attract more users since most internet users are no more using Internet Explorer due to it slow performance.

iTunesoffers a catalogue of albums, user reviews, album art, Internet radio, and podcast listings for free. Consumers can benefit from iTunes' content and services without ever making an online digital purchase. Apple even gives away new content every week, so users can expand their music collection without any commitment to buy anything.Soundbuzz shall synchronize and reform a convenient and fresh look to attract consumers.