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Maheshwari agrees, “The launch of Google Chrome could shake the dominant position of Microsoft in web browsers industry, which accounts for more than 70% of the browser industry.” However, the short term impact doesn’t seem much severe as much of the systems in work across the world have Internet Explorer as their default web browser. Switching to other browsers isn’t that easy for users when they are comfortable with an existing one. Its initial move cannot be considered as an assault on Microsoft’s Internet Explorer, but the long term strategy may indeed be an assault on other products, like Office.

Currently, a majority of the browser market is being held by Microsoft, followed by Mozilla, and thus, leaving just 3% to 5% share of the browser industry for other players like Opera, Safari, and Netscape. Google already enjoys a dominant position in the search engine market, and combined with its own web browser with differentiated features, it holds the true potential to bring about a ‘disruption’ in the industry, resulting in restructuring of its market landscape. As competition often results in innovation of one sort or another, it will further lead to intensified competition in the industry, which, in turn, would lead to the introduction of more improved and innovative user-friendly features in the industry. Maheshwari believes that “Chrome’s impact on other browsers will be quite noticeable if things go well as per planned by Google.”

While the competition between Microsoft and Google is likely to produce many improvements for consumers, the likely fallout from the battle will be other browser makers that have only recently begun to pry market share away from Microsoft. Firefox could become a victim of “friendly fire” from Google as many of its users are the same early adopters who are most likely to switch and try a new browser. Other browsers, like Opera and Apple’s Safari might suffer loss of popularity too. The impact of Chrome on Opera will be minimal as Opera’s growth on the desktop is limited. But Opera will face challenges in the mobile space (where Opera’s potential lies) when Android or mobile version of Chrome will be released at the end of this year.

So far, the launches of new browsers by other companies have not been able to dent Microsoft’s dominant position. Only Mozilla has been successful in snatching a small chunk of the industry from Microsoft.

But with the entry of Google, one can expect some serious browser wars now. And while “who should we be rooting for” in this war is still a matter of ‘economist’ speculation, one thing’s for sure - considering how Google is moving towards destroying Microsoft’s citadels step by step, the latter needs to be very very worried...

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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