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Case Analysis: Google, Apple, and Facebook Battle for Our Internet Experience

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Published: Jan 28, 2021

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Summary of case, business models and strengths of apple, google, and facebook, mobile computing, which company and business model will dominate the internet, impact on business and individual consumers if companies dominated the internet experience, relevant research.

• Laudon, K. C., & Laudon, J. P. (2017). Management information systems: Managing the digital firm. Singapore: Pearson Education South Asia Pte.
• Rushe, D. (2019, September 15). Google, Facebook, Amazon and Apple asked to turn over internal documents. Retrieved from the Guardian website: https://www.theguardian.com/technology/2019/sep/13/google-facebook-amazon-apple-big-tech-house-judiciary-committee
• 16 Ways Facebook, Google, Apple and Amazon Are in Government Cross Hairs. (2019, September 6). The New York Times. Retrieved from https://www.nytimes.com/interactive/2019/technology/tech-investigations.html
• Eadicicco, L. (2019, July 16). Google, Facebook, Apple, and Amazon to testify over antitrust concerns - Business Insider. Retrieved October 31, 2019, from Business Insider website: https://www.businessinsider.com/how-google-facebook-apple-respond-to-tech-regulation-2019-7
• Google, Facebook, Apple, Amazon face US anti-trust probe. (2019, June 4). BBC News. Retrieved from https://www.bbc.com/news/technology-48513328

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More From Forbes

Apple and google prepare for battle with new features to beat facebook.

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The Apple versus Facebook battle is well documented, but the power struggle between the iPhone maker and Google is now gaining pace.

Google’s Android has always fallen behind Apple’s iOS in the privacy stakes. It’s not a surprise, since Google’s business model is based on advertising.

But Google is now trying to take on Apple in privacy by finally adding features it announced last year into the Play Store via a new safety section that details the data apps collect—much like Apple’s privacy labels. App developers have until July 20 to add details to the listings.

Google is planning more privacy features , but they won’t come into place for at least two years.

Apple’s privacy features boost its reputation

Apple’s privacy features have boosted the iPhone maker’s reputation over the last couple years. Perhaps the most influential of these is App Tracking Transparency (ATT), the anti-tracking features that ask iPhone users to opt in to tracking across apps and services.

Among the successes of ATT, it’s made people aware of background iPhone tracking by firms such as Facebook.

Some critics have claimed Apple is using ATT to boost its own ad business. In response to this, Apple commissioned a whitepaper in which Kinshuk Jerath, Professor of Business in the Marketing Division at Columbia Business School defended the iPhone maker’s privacy features. The paper is obviously biased, but it’s still worth reading.

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Apple says its privacy-centric strategy is working—Apple CEO Tim Cook claims more people are ditching Google’s Android for the iPhone. “We had a record level of upgraders during the quarter and we grew switchers, strong double digits,” Cook told CNBC ’s Steve Kovach in a recent interview.

Facebook loses while Google takes on Apple in privacy

Apple’s revenue model is based around services—it wants to lock people into its walled garden where it owns the entire ecosystem. One way of attracting people in the first place is through privacy as a differentiator.

As Apple continues to introduce new privacy features, the real loser is Facebook. Last month, I reported how the iPhone maker’s App Tracking Transparency (ATT) features will cost Facebook $12.8 billion in 2022—a bigger hit than previously thought.

Like Facebook, Google bases its business around advertising, yet Google has an advantage compared to Facebook because it owns so many platforms.

As Forbes ’ Zak Doffman says: “It comes down to business models. What’s interesting is, we are in results season for big tech and Google’s data and advertising business is holding up really well compared to Facebook.

“That’s because of its ownership of the platforms—whether it’s Android or Chrome, these enormously popular platforms are a goldmine for Google and have given it a level of resilience in its revenue line that Facebook can’t possibly match.”

As the big tech battle rages on, with Apple and Google going head to head and Facebook frankly losing, there are benefits to users too. Google has started to take notice with Android privacy features, while following on from iOS 14 and iOS 15, Apple is sure to make iOS 16 about privacy.

Intentionally or not, this big tech battle is also highlighting the vast amounts of data that many firms collect, and giving people more control over what they give away. That’s got to be a good thing.

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Amazon, Apple, Facebook, and Google 2018

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The case for breaking up amazon, apple, facebook and google.

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Google, Apple and Facebook Companies Competition Case Study

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The point of the article is that mobile computing and Internet services can be very profitable and that the company that dominates the market can earn a lot of money. Different companies try different strategies, and the case examines them. The first company described by the case study is Apple. Their early push for smartphones and tablets has made their brand highly successful. This allows Apple to have proprietary hardware and operating system that is under the complete control of the company. The introduction of downloadable applications through its digital marketplace called App Store has revolutionized the smartphone market.

The second company that the case study shows is Google. It is the leading search engine in the world, with a network of extremely popular online services like Gmail, Google Drive, and many others. The case study also focuses on its successful advertising business that is a major revenue provider for the company. In the last decade, the company became focused on hardware such as smartphones, tablets, and other technologies. Its open-source Android operating system has become the most-used mobile operating system in the market, and the phones produced by Google and its partners have become real competitors for Apple.

Facebook is described as the most popular social network. In recent years it became a popular phone application, and the company overhauled the site to improve mobile browsing. Three of the main projects of Facebook described in the article are its advertising network, the purchase of VR developer Oculus VR Inc. and its social search named Graph Search.

Although the information provided in the case was accurate in 2014, the market has already seen a few changes since then. Google’s efforts in developing a modular smartphone have proven to be not commercially viable. After the failure of similar products by other companies, Google has quietly shelved the project without a major announcement (Alba, 2016). The same could be said of the Google Glass project. Due to the high price of entry and concerns about public filming, the project and its users became unwelcome in most public places, which stalled all efforts of the company to continue development (Altman, 2015). Currently, the company is working on a secretive AR project titled “Daydream” built on its Tango platform.

The Apple Watch was not met with a great response despite early enthusiasm from the audience, and at the moment, it is not the focus of the company. However, Apple is still a strong competitor in the mobile market (Page, 2015).

Facebook has experienced large setbacks since 2014. The purchase of Oculus VR Inc. has not resulted in a large return because the market for VR titles has remained small due to the high price of entry. The controversial opinions of its former designer Palmer Lucky have also negatively affected the project’s image (Rosedale, 2017). Another issue for the company came from the spread of false information by its users. The problem with false news articles and posts has become large enough for the company to address it (Spinney, 2017).

All three companies have a stake in internet services. For example, Google is one of the most popular E-mail providers and offers instant messaging and Voice over IP functionality in its Google+ service. This service allows unified communications at no cost to the user. Facebook utilizes a similar approach in its messages system. At the same time, Google is the most popular search engine on the Web. Its use of complex algorithms allows it to present results much quicker than it was previously possible. The goal of being at the top of the results has made many companies invest in search engine optimization. Facebook Graph search is different in scope and can be considered Social search because it searches through social network contacts. Also, for Apple and Google, Wireless Network Access has made smartphones a much more profitable market because of the lower prices for access and larger bandwidth reserve.

Out of the three companies, Google is the most versatile because its business model includes Internet services, smartphones, tablets, and advertisements. The company is highly competent in these areas and is leading in all three spheres. Apple is a very close competitor in the mobile computing field, and its brand still holds a lot of value. Its business model is based on selling expensive proprietary hardware and software through its mobile stores. Facebook is a social network, and despite its attempts to branch out into hardware, it has not yet reached the desired results. However, it is a powerful social network, and its advertising network can rival Google AdSense.

Mobile computing is highly important for these companies because it is a highly popular way to access the internet. It is easier than using a computer and can create a loyal following that purchases new models of hardware on a yearly basis. Apple creates its hardware and software that only their users can access. Google has an open source approach which lets anyone use their operating system and marketplace for their mobile devices. Facebook, on the other hand, integrates into both operating systems and provide a unified experience on both.

Search holds two major benefits for mobile computing. The first is that it allows the users to quickly find information on the internet, and the second is that companies can earn money on sponsored searches and advertisements. Apple does not have a dedicated search site but instead uses their voice assistant Siri to compete with Google. Facebook has a social search named Graph Search which provides results based on social network information. I do not believe that their strategies could match the functionality and the popularity of Google Search because of their niche focus.

I believe Google has the highest chance of dominating the market because of their flexible approach to business. Google has a lot of different services that it provides for free to users of any device, including Apple smartphones and tablets. The company constantly researches new technologies that could be used in the future products, and their brand is highly valuable.

In some ways, Google already dominates the user internet experience. Google Search is the most popular search engine. YouTube is the most popular video sharing site. Chrome is one of the top internet browsers, and Gmail is the most popular E-mail provider. Therefore I do not believe there would be much of a difference if they extended their social networks would become the most popular too. However, it would result in lesser competition, and without it, I can see innovation becoming less of a priority for the company. If a company like Apple became the most dominant Internet company, it could be disastrous for the more advanced users. Apple has no interest in Open Source development, customization or universal compatibility meaning that their services would not facilitate independent innovation from its user base.

Alba, D. (2016). The death of Project Ara shows Google is all grown up . Wired.com .

Altman, I. (2015). Why Google Glass failed and why Apple Watch could too . Forbes.com .

Page, T. (2015). Barriers to the adoption of wearable technology. i-Manager’s Journal on Information Technology , 4 (3), 1-13.

Rosedale, P. (2017). Virtual reality: The next disruptor: A new kind of worldwide communication. IEEE Consumer Electronics Magazine , 6 (1), 48-50.

Spinney, L. (2017). The shared past that wasn’t. Nature , 543 , 168-171.

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IvyPanda. (2020, September 9). Google, Apple and Facebook Companies Competition. https://ivypanda.com/essays/google-apple-and-facebook-companies-competition/

"Google, Apple and Facebook Companies Competition." IvyPanda , 9 Sept. 2020, ivypanda.com/essays/google-apple-and-facebook-companies-competition/.

IvyPanda . (2020) 'Google, Apple and Facebook Companies Competition'. 9 September.

IvyPanda . 2020. "Google, Apple and Facebook Companies Competition." September 9, 2020. https://ivypanda.com/essays/google-apple-and-facebook-companies-competition/.

1. IvyPanda . "Google, Apple and Facebook Companies Competition." September 9, 2020. https://ivypanda.com/essays/google-apple-and-facebook-companies-competition/.

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IvyPanda . "Google, Apple and Facebook Companies Competition." September 9, 2020. https://ivypanda.com/essays/google-apple-and-facebook-companies-competition/.

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Information system

Google, apple, and facebook battle for your internet experience.

Three Internet titans—Google, Apple, and Facebook—are in an epic struggle to dominate your Internet experience, and caught in the crossfire are search, music, video, and other media along with the devices you use for all of these things. Mobile devices with advanced functionality and ubiq­uitous Internet access are rapidly overtaking tradi­tional desktop machines as the most popular form of computing. Today, people spend more than half their time online using mobile devices that take advantage of a growing cloud of computing capacity. It’s no sur­prise, then, that today’s tech titans are aggressively battling for control of this brave new online world.

Apple, which started as a personal computer com­pany, quickly expanded into software and consumer electronics. Since upending the music industry with its iPod MP3 player, and the iTunes digital music ser­vice, Apple took mobile computing by storm with the iPhone, iPod Touch, and iPad. Now Apple wants to be the computing platform of choice for the Internet.

Apple’s competitive strength is based not on its hardware platform alone but on its superior user in­terface and mobile software applications, in which it is a leader. Apple’s App Store offers more than 2 mil­lion apps for mobile and tablet devices. Applications greatly enrich the experience of using a mobile device, and whoever creates the most appealing set of devices and applications will derive a significant competitive advantage over rival companies. Apps are the new equivalent of the traditional browser.

Apple thrives on its legacy of innovation. In 2011, it unveiled Siri (Speech Interpretation and Recognition Interface), a combination search/navi- gation tool and personal assistant. Siri promises per­sonalized recommendations that improve as it gains user familiarity—all from a verbal command. Google countered by quickly releasing its own AI tool,

Google Now. Facebook has developed an intelligent assistant called M.

Apple faces strong competition for its phones and tablets both in the United States and in developing markets like China from inexpensive Chinese smart­phones and from Samsung Android phones that have larger screens and lower prices. iPhone sales have started to slow, but Apple is not counting on hard­ware devices alone for future growth. Services have always played a large part in the Apple ecosystem, and they have emerged as a major revenue source. Apple has more than 1.3 billion active devices in cir­culation, creating a huge installed base of users will­ing to purchase services and a source of new revenue streams. Apple’s services business, which includes Apple’s music (both downloads and subscriptions), video sales and rentals, books, apps (including in-app purchases, subscriptions and advertising), iCloud storage, and payments, has been growing at a double­digit rate.

As Apple rolls out more gadgets, such as the Watch and HomePod, its services revenue will continue to expand and diversify. According to CEO Tim Cook, Apple has become one of the larg­est service businesses in the world. This service- driven strategy is not without worry because both Google and Facebook offer stiff competition in the services area.

Google continues to be the world’s leading search engine, accounting for about 75 percent of web searches from laptop and desktop devices and over 90 percent of the mobile search market. (Google is also the default search engine for the iPhone). About 84 percent of the revenue from Google’s par­ent company Alphabet comes from ads, most of them on Google’s search engine. Google dominates online advertising. However, Google is slipping in its position as the gateway to the Internet. New search startups focus on actions and apps instead of the web. Facebook has become an important gateway to the web as well. In 2005, Google had purchased the Android open source mobile operating system to compete in mobile computing. Google provides Android at no cost to smartphone manufacturers, generating revenue indirectly through app purchases and advertising. Many different manufacturers have adopted Android as a standard. In contrast, Apple al­lows only its own devices to use its proprietary oper­ating system, and all the apps it sells can run only on Apple products. Android is deployed on over 80 per­cent of smartphones worldwide; is the most common operating system for tablets; and runs on watches, car dashboards, and TVs—more than 4,000 distinct devices. Google wants to extend Android to as many devices as possible.

Google’s Android could gain even more market share in the coming years, which could be problem­atic for Apple as it tries to maintain customer loyalty and keep software developers focused on the iOS platform. Whoever has the dominant smartphone op­erating system will have control over the apps where smartphone users spend most of their time and built-in channels for serving ads to mobile devices. Although Google search technology can’t easily navi­gate the mobile apps where users are spending most of their time, Google is starting to index the content inside mobile apps and provide links pointing to that content featured in Google’s search results on smart­phones. Since more than half of global search que­ries come from mobile devices, the company revised its search algorithms to add “mobile friendliness” to the 200 or so factors it uses to rank websites on its search engine. This favors sites that look good on smartphone screens. The cost-per-click paid for mo­bile ads has trailed desktop ads, but the gap between computer and mobile ads fees is narrowing. Google instituted a design change to present a cleaner mo­bile search page.

Seven Google products and services, including Search, YouTube, and Maps, have more than a billion users each. The Android operating system software has over 2 billion monthly active users. Google’s ulti­mate goal is to knit its services and devices together so that Google users will interact with the company seamlessly all day long and everyone will want to use Google. Much of Google’s efforts to make its search and related services more powerful and user-friendly in the years ahead are based on the company’s invest­ments in artificial intelligence and machine learning (see Chapter 11). These technologies already have been implemented in applications such as voice search, Google Translate, and spam filtering. The goal is to evolve search into more of a smart assistance capability, where computers can understand what people are saying and respond conversationally with the right information at the right moment. Allo is a smart messaging app for iOS and Android that can learn your texting patterns over time to make conver­sations more expressive and productive. It suggests automatic replies to incoming messages, and you can get suggestions and even book a restaurant reserva­tion without leaving the chat. Google Assistant is meant to provide a continuing, conversational dia­logue between users and the search engine.

Facebook is the world’s largest social networking service, with over 2 billion monthly active users.

People use Facebook to stay connected with their friends and family and to express what matters most to them. Facebook Platform enables developers to build applications and websites that integrate with Facebook to reach its global network of users and to build personalized and social products. Facebook is so pervasive and appealing that it has become users’ primary gateway to the Internet. For a lot of people, Facebook is the Internet. Whatever they do on the Internet is through Facebook.

Facebook has persistently worked on ways to con­vert its popularity and trove of user data into adver­tising dollars, with the expectation that these dollars will increasingly come from mobile smartphones and tablets. As of early 2018, over 95 percent of ac­tive user accounts worldwide accessed the social network via smartphone. Facebook ads allow compa­nies to target its users based on their real identities and expressed interests rather than educated guesses derived from web-browsing habits and other online behavior.

At the end of the first quarter of 2018, 98 percent of Facebook’s global revenue came from advertising, and 89 percent of that ad revenue was from mobile advertising. Many of those ads are highly targeted by age, gender, and other demographics. Facebook is now a serious competitor to Google in the mobile ad market and is even trying to compete with emerg­ing mobile platforms. Together, Facebook and Google dominate the digital ad industry and have been re­sponsible for almost all of its growth. Facebook has overhauled its home page to give advertisers more opportunities and more information with which to target markets. The company is expanding ad­vertising in products such as the Instagram feed, Stories, WhatsApp, Facebook Watch, and Messenger, although the majority of ad revenue still comes from its news feed. Facebook has its own personal­ized search tool to challenge Google’s dominance of search. Facebook CEO Mark Zuckerberg is convinced that social networking is the ideal way to use the web and to consume all of the other content people might desire, including news and video. That makes it an ideal marketing platform for companies. But he also knows that Facebook can’t achieve long-term growth and prosperity based on social networking alone. During the past few years Facebook has moved into virtual reality, messaging, video, and more.

Facebook is challenging YouTube as the premier destination for personal videos, developing its own TV programming, and making its messages “smarter” by deploying chatbots. Chatbots are stripped-down software agents that understand what you type or say and respond by answering questions or executing tasks, and they run in the background of Facebook’s Messenger service (see Chapter 11). Within Facebook Messenger, you can order a ride from Uber, get news updates, check your flight status, or use augmented reality to imagine what a new Nike sneaker looks like by superimposing a 3-D model of that sneaker atop images or video. A new standalone app will allow users to stream videos in their news feed through set-top boxes such as Apple Inc.’s Apple TV and Amazon.com Inc.’s Fire TV, as well as Samsung Internet-connected TVs.

Zuckerberg has said that he intends to help bring the next billion people online by attracting users in developing countries with affordable web con­nectivity. Facebook has launched several services in emerging markets, such as the Free Basics service designed to get people online so they can explore web applications, including its social network. Facebook wants to beam the Internet to underserved areas through the use of drones and satellites along with other technologies. Zuckerberg thinks that Facebook could eventually be an Internet service provider to underserved areas.

Monetization of personal data drives both Facebook and Google’s business models. However, this prac­tice also threatens individual privacy. The consumer surveillance underlying Facebook and Google’s free services has come under siege from users, regulators, and legislators on both sides of the Atlantic. Calls for restricting Facebook and Google’s collection and use of personal data have gathered steam, especially after recent revelations about Russian agents trying to use Facebook to sway American voters and Facebook’s uncontrolled sharing of user data with third-party companies. Both companies will have to come to terms with the European Union’s new privacy law, called the General Data Protection Regulation (GDPR), that re­quires companies to obtain consent from users before processing their data, and which may inspire more stringent privacy legislation in the United States. Business models that depend less on ads and more on subscriptions have been proposed, although any effort to curb the use of consumer data would put the business model of the ad-supported Internet—and possibly Facebook and Google—at risk. Apple em­phasizes its privacy protection features and does not share customer data with others.

These tech giants are also being scrutinized for monopolistic behavior. In the United States, Google drives 89 percent of Internet search, 95 percent of young adults on the Internet use a Facebook prod­uct, and Google and Apple provide 99 percent of mobile phone operating systems. Critics have called for breaking up these mega-companies or regulating them as Standard Oil and AT&T once were. In July 2018 European regulators fined Google $5 billion for forcing cellphone makers that use the company’s Android operating system to install Google search and browser apps. Have these companies become so large that they are squeezing consumers and innova­tion? How governments answer this question will also affect how Apple, Google, and Facebook will fare and what kind of Internet experience they will be able to provide.

Source: Laudon Kenneth C., Laudon Jane Price (2020), Management Information Systems: Managing the Digital Firm , Pearson; 16th edition..

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Google Apple & Facebook Battle for Internet Experience Case Study 4 Questions

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Case Study 4: Google, Apple, and Facebook Battle for Your Internet Experience

Textbook (Laudon & Laudon, 2019), Pages 267-269.

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Attached. Running Head: CASE STUDY ON GOOGLE, APPLE &FACEBOOK Case study on Google, Apple $ Facebook Student’s Name Instructor’s Name Institutional Affiliation Date CASE STUDY ON GOOGLE, APPLE &FACEBOOK 2 Question one The Facebook business model was initially based on traditional manufacturing style, but with time it adopted a new form of creating the best platforms for its users. Its business model is visualized and this can be seen in several offers in the platform. Hence apart from advertising different products, people also interact to acquire new business ideas and information. Its core competency is to create an extensive network by use of algorithms to facilitate socialization. The Google’s business model is based on generating revenues from various applications advertised on their platforms. Its core competencies are focused on software engineering especially on maintaining hardware infrastructure. Another core competency is on company�...

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Apple and Meta are ramping up their feud over who is in charge of protecting kids

Katie Notopoulos , Senior Correspondent covering technology and culture

• Meta has suggested that Apple should be responsible for App Store age verification.
• That's convenient for Meta, but Apple has lobbied hard to ax any legislation that would force this.
• In the end, parents and kids lose.

Meta has a problem. Everyone, their mom, and their state attorney general is mad at them for their role in contributing to the mental-health crisis for teens.

Last November, Meta's head of global safety, Antigone Davis, published a blog post urging government regulation on the issue of children and teens accessing Instagram and other social media. She proposed that Apple and Google take charge of age-gating and getting parental consent through their app stores. She wrote:

Parents should approve their teen's app downloads, and we support federal legislation that requires app stores to get parents' approval whenever their teens under 16 download apps. With this solution, when a teen wants to download an app, app stores would be required to notify their parents, much like when parents are notified if their teen attempts to make a purchase. Parents can decide if they want to approve the download. They can also verify the age of their teen when setting up their phone, negating the need for everyone to verify their age multiple times across multiple apps.

It sounds like Meta is just trying to wiggle out of having to clean up its own mess.

But Meta does have a point: It would be a lot easier for Apple and Google to implement age-gating at the app-store level versus leaving this work to each individual app.

According to a report this week from The Wall Street Journal, Apple is not at all willing to entertain this idea. When state legislators in Louisiana were considering a bill that would make app stores responsible for age verification, Apple sent out a team of lobbyists to help shut it down. It worked — that part of the bill was dropped.

This is a new wrinkle in a low-key feud between Meta and Apple. Meta resents Apple for several reasons: Apple hurt its ad business with the "ask app not to track" feature; its App Store takes an onerous cut of up to 30% for some in-app purchases; and, worst of all, Apple gets away with a smarmy, holier-than-thou attitude about privacy.

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You might imagine why Apple isn't excited to jump forward with a plan to be responsible for age-gating all social apps. Apple doesn't want to handle age verification, because that's a privacy nightmare. And it likely resents having to clean up Meta's and TikTok's messes. Plus, Apple already has parental controls and age ratings in the App Store that allow parents to block apps rated over a certain age.

So Apple and Meta are at a standstill.

Everyone seems to agree there's a big problem with young people and social media , but there is no one clear and obvious solution. Age verification isn't ideal (I certainly don't want to have to upload my driver's license to use Instagram), and simply keeping kids under 13 (or 15!) off these apps doesn't solve the thorny problems of how young people get miserable once they're on social media.

Meanwhile, individual states are making piecemeal laws about social media and teens. New York passed a bill this summer to prohibit "addictive" algorithms on young users' feeds. Other states, including California, Arkansas, and Utah , have also tried to pass their own laws regulating social media for teens, though these have faced scrutiny from courts on First Amendment grounds.

The best hope for an immediate change in policy, it seems to me, is for individual schools to ban cellphones from class . This would probably make teachers happy and get kids to pay more attention, but it's only one part of the larger issue.

Both Meta and Apple could be doing more to solve the problem of kids and phones — and so could the government. For now, parents are left struggling on their own.

Watch: Apple's antitrust lawsuit is just one of its major battles

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