Why Google beats Microsoft

It’s no secret. Even Microsoft CEO, Steve Ballmer, acknowledges it in his own way: Google is consistently beating Microsoft in the online game - left, right and center.

But why is it so? How come that the worlds most powerful software maker and more a less a creator - or at least a very significant driver - of the whole PC boom seems stuck?

I think there are at least two overarching reasons. Let’s quickly look at them.

First of all, despite all Google’s different projects and their lacklustre results with most of them, Google seems a more focused company. Even though Google has some big projects with major clients, Google doesn’t have to please both the consumer and mega enterprises the way Microsoft has. Google can focus in a much more narrow spectrum, customer wise. For Microsoft this is proving to be a real tough one.

Second, Microsoft spends too much time and energy looking towards Google, and what they are doing. In a lot of areas they’re playing catchup, and in the search advertising business there’s a real strong argument for that: The potential revenue upside of nailing it - of getting above and beyond where Google is at. Steve Ballmer spends a lot of time thinking about Google. What does Google CEO Eric Scmidt do?:

I never worry about Microsoft.

I don’t think it’s necessarily true, but it makes a good point. I fundementally believe that there’s advantage in sticking to your own mission and plan and not try to be something that you’re not. It’s like a dog chasing its own tail - it (almost) never succeeds in catching up.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.