Marketing Challenges of Microsoft and Google

Microsoft

Bill Gates stepped to the podium in Las Vegas Wednesday night at the Consumer Electronics Show. His challenge: To foment buyer anticipation for new PCs equipped with Windows Vista –the latest, most powerful version of the world’s most widely used computer operating system. “Windows is Microsoft’s most important product and this is a very big release,” said Gates, “People will see a lot of things that they haven’t seen before in terms of media, photos and user interface.”

Microsoft and Yahoo to Jump into Bed?

Fresh from losing the AOL contest to Google, Microsoft is wasting no time in seeking another Tier 1 Internet company. Speculation about an alliance between Microsoft and Yahoo has been mounting, as they like each other and have worked together in the past. In October, the two companies announced they would make their instant-messaging services compatible – simultaneously freezing out Google’s rival IM service.

Yahoo has a deep hatred for Google and that a partnership between Microsoft and Yahoo would most likely focus on direct competition to Google as the leader in the ever-expanding search advertising market. By combining with Microsoft, the two companies’ ad networks will be better able to challenge Google.

Prediction:

Google will unveil its own low-price personal computer or other device that connects to the Internet

Word is that Google has been in negotiations with Wal-Mart Stores, Inc., as well as other retailers, to sell a Google PC. The machine would run an operating system created by Google, not Microsoft’s Windows, which is one reason it would be so cheap – perhaps as little as a couple of hundred dollars.

Google to Offer Video Downloads, Software That Rivals Microsoft’s

Google plans to announce that it will begin allowing consumers to buy videos from major content partners (AOL and Time Warner for sure) through the Google site and will also roll out a new downloadable bundle of software for consumers that could heighten Google’s competition with Microsoft.

Under the major upgrade to Google’s video-search service, consumers will be able to pay to download and view videos, such as television shows, on their computers from Google content partners. Google plans to announce partnerships with some major players; including, CBS and the National Basketball Association. The move could place Google in competition with other emerging powers in Internet distribution of video such as Apple Computer.

The search company plans to announce Google Pack, a bundle of software from Google and other companies that consumers will be able to download and install on their computers; which includes, Firefox Web browser, a version of Norton AntiVirus, Adobe Reader software, RealNetwork’s RealPlayer multimedia software and instant-messaging software.

Google and Microsoft are battling for users for their online services and see applications installed on users’ computers directing them to those online services as powerful weapons. Google has developed its own digital-rights-management software to protect downloaded videos from piracy.