Google vs Microsoft

Résumé du document

Since the launch of the Google Search engine, a paying version has been reserved for the enterprise, which allows firms' access to documents in the internal database of Google. Microsoft has now declared war on the famous search engine. It is a very profitable market and Gartner Group forecasts that it will be worth $500 million in 2010. Consequently, Microsoft will launch a new version of its own enterprises search engine, ?Share Point Portal' at the end of the year. Microsoft has underestimated the profitability of the activities focused on the Web for a long time. 80% of its revenues were generated from the sales of its famous operating system, Windows and its Office software. Microsoft has decided to raise a barrier between Google and the net surfers. Its objective is to rule over the web. However, we must not forget that Google is five times more famous than Microsoft with respect to public researches on the web. It has been established that one out of every two net surfers research information via Google.

Extraits

[...] We can notice that Google is more secure than Microsoft for creditors. Current Liabilities to Inventory = Current liabilities/Inventory / = This ratio measures the extent to which the payment of current debts relies on the sale of inventory. Total Liabilities to Net Worth = Total Liabilities/Net Worth / - = This ratio shows how a company's debts relate to the equity of the owners. The higher this ratio, the less protection there is for the shareholders. In this case, Google's ratio is inferior to Microsoft's ratio. [...]

[...] Consequently, they managed to have an average asset turnover ( & 56.19 in the same year. Moreover, we can notice that Microsoft has a better Net Marginal Profit but a lower total asset turnover when compared to Google. Collection Ratio = Receivables/ (Revenues/365) / = This ratio shows the average number of days taken to collect unpaid invoices. These results show us one of the big problems of Microsoft. On average, it took 65-87 days in 2005 to clear its invoices. It has to focus its strategy on the decreasing of receivables. [...]

[...] Google has few liabilities, that is the reason why it has a low total debt ratio. Debt Equity Ratio = Total Liabilities/Equity / = This ratio measures management's reliance on creditor financing as well as the business's indebtedness compared to the amount invested by its owners. It indicates the amount of liabilities the business has for every dollar of shareholders' equity. Sometimes, investors only use long term debts instead of total liabilities for a more stringent test. This ratio is a good business capacity tool to repay its creditors. [...]

[...] Google Adsense program allows web sites in the Google Network to serve targeted ads from a strategic alliance with Intuit Inc. Presentation of Microsoft Microsoft was founded in 1975 by William H. Gates III and is headquartered in Redmond in Washington. Microsoft Corporation develops, manufactures, licenses and supports a wide range of products and services predominantly related to computing devices worldwide. It is segmented in three divisions: Platforms and services. It comprises of Client, Server and Tools, and Online services segments. Client segment offers operating systems for servers, personal computers and intelligent devices. [...]

[...] Google Talk Microsoft is incontestably the leader with 60% of the market shares contrary to Google Talk with 1%. Nevertheless, Google only launched this service recently while MSN Messenger has been used for several years. Digital library: The two firms cater to the same goal: digitize all the books of the planet. Furthermore, both have problems with copyrights. Presentation of Google Google was founded by Larry Page and Sergey Brin in 1998. The company is headquartered in Mountain View in California. [...]