Google and Microsoft: Financial Analysis

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Description of Competitors For this analysis, I am going to choose Google and Microsoft, as these companies compete in three of the same areas online advertising, mobile operating systems and web browsers. Google earns most of its money in online advertising, but maintains leading market share in the other categories as well. Microsoft competes in all three, but it makes most of its money from Windows and Office. Google is a threat to enter the laptop and desktop operating system business as well, which would directly threaten Windows (Hamblen, 2012). Organizational Structure and Management Google has a relatively flat organization. The company does not have a specific product focus in its organizational structure, which is more oriented around project teams, with some centralized control. >The company's founders, Larry Page and Sergey Brin, are still actively involved in the day-to-day operations of the company. The main revenue generator, online advertising, is de-emphasized in Google's organizational structure. In contrast, Microsoft has a product-based organizational structure that emphasizes its two main products. It also views its business in terms of customer groups, especially the split between commercial clients and retail consumers. Google's financial statements reveal a rapidly-growing company with a very healthy balance sheet. Revenues have increased 128% in the past five years, and profits have increased 131% in that time. Research and development is
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