From ad business to mobile payments, the search engine gaint has many fights to win
Recently Google Inc (NASDAQ:GOOGL), through its executive chairman Eric Schmidt, responded to Tim Cook’s, Apple Inc. (NASDAQ:AAPL) CEO, letter on privacy. The letter distanced Apple from use of consumer data, a practice common with data mining companies such as those engaged in ad businesses.
The response could open a war of words on privacy between these two tech giants, but this not the only war that the search engine giant is fighting. Since the company is engaged in different business niches, the company has made so many rivals and thus receiving blows from all directions. Here are Google’s current battles and how it is handling each an every one of them:
Google vs. Facebook –ad business
Over one and a half years ago, Facebook Inc (NASDAQ: FB) bought Microsoft Corp’s (NASADQ: MSFT) Atlas ad measurement and serving platform. The social media network has now revamped this app and is soon launching it to help its advertisers measure the performance of the ads they post on the social network, its apps or third party sites. And with Facebook’s mobile ads performing exceptionally well, Google has every reason to worry of its DoubleClick display ad unit.
Google is not sleeping on the job, however. The company acquired ad measurement platform Adometry and has been upgrading its system to perform better by being able to track offline and cross-device activity. Besides this, the company launched an app install ad service for AdWords search ad. This will definitely help it secure its position as the number one online advertiser.
Google vs. Samsung: the entry of Tizen OS
The South Korean electronincs company Samsung has been gradually developing its OS known as Tizen. The system is not only meant for smartphones, but also tablets and home appliances. This bad news to Google as Samsung has been the real force behind Android dominance in the smartphone market.
To replace Samsung, Google has partnered with HTC to make its next 9-inch Nexus tablets. Both Google and HTC are poised to benefit from this deal. The search engine giant will be reducing reliance on Samsung through supplier diversification, while the Chinese gadget maker will benefit from the Nexus effect.
Payment Service: Google VS. Apple
On Sept 9 Apple unveiled its iPhone 6, and also making its debut was Apple Pay, a mobile payment solution. While Google was a first mover in the mobile payment market, the search giant failed to make any impact. But Apple has been able to convince financial industry players such as merchants, banks and insurers to accept its mobile payment service. Already some top-tier merchants are on-board including McDonald’s, Whole Foods, Duane Reade, Subway, Macy’s, Bloomingdale’s, Staples and Disney.
In response to Apple’s onslaught on e-Payments solutions, Google is rumoured to be working with eBay Inc’s (NASDAQ: EBAY) subsidiary PayPal. This has even prompted rumours that Google might as well acquire eBay or its subsidiary. Whatever the case, partnership with PayPal, which has gained global traction as an online payment network, will be a perfect response. Also the availability of iOS 8 mobile payment solution has created a gap for a similar solution for android. Actually, industry players will be quick to embrace an android mobile payment solution as it the largest mobile community.
Conclusion
Google has ventured in virtually every business that relates to the internet. This has created different angles for competition as each player scramble for the open market. While the search giant has many battles to fight, it has nothing to fear as it has a formidable defence thanks to huge amount of money on its coffers.
