Skip to content

What’s $6.2 billion among friends?

July 3, 2012

This morning’s WSJ article that Microsoft is taking a $6.2 billion writedown of its internet business comes as no surprise to anyone watching the iTitans battling for industry profits.

Many times I have referred to the Sheth Model used to predict the corporate behaviors of those dominating the mass market and  niche markets. Microsoft with almost 70% market share in 2008 lead in market share by a historically wide margin. Only to lose it within 4 short years. Why? As the model predicts, the number 1 and 2 will battle and leap frog each other with the number 3 position developing the most in innovation. This position is usually the innovator as they risk slipping into the ditch.

As of now these three are close to equal in market shares. The strategies these players implement will dictate the winner. If MSFT can not turn around their online business, expect it to be spun off. Most probably not shared with a rival.

In September 2008, Google released the first beta version of its own web browser Chrome. The first final version was made available in December 2008 and since then the browser has steadily climbed up the browser rankings until it became the world’s most popular browser in May 2012. This is according to StatCounter, a web analytics firm that tracks browser market share based on more than 15 billion global page views per month. Last week, Google reached another milestone when Chrome was made available for iPhone and iPad. It remains to be seen if Google can challenge Safari as the native browser on iOS devices, but after its release Chrome immediately shot up the App Store charts. 

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s