Filed under: Competitive strategy, Google (GOOG), Microsoft (MSFT), Marketing and advertising

Microsoft Corp.’s (NASDAQ: MSFT) struggle in the internet search business has not been entirely its own fault, or has it? Innovation and first-mover advantage have been all with Google, Inc. (NASDAQ: GOOG) in recent years, as the company has put the proverbial icing on the search cake with its unobtrusive and workable advertising model that just seems to resonate with consumers.

Microsoft even responded to Google’s growing dominance this year by launching the “Microsoft Search and Win” initiative that gave searchers rewards for using Microsoft’s search engine. Is that move desperate for a company wanting to improve its position in the search marketplace or some type of experimental gimmick? The jury is still out on that one.

Microsoft also wants to get into the business of tailored search, which gives custom answers to searchers based on many factors and supplies niche information about entertainment, news and other items that are unique results for each searcher. The only thing is that Google is already there with its personalized search results and this is quickly not becoming a product differentiator for Ole’ Softie.

But, hold the presses: Satya Nadella, corporate VP of search at Microsoft, has a feeling that Microsoft can turn its organic 70 million search visitors into more by offering a more complete set of services and tools every time they visit Microsoft’s search properly. But, that area is fragmented in my estimation. MSN Search and Live.com are two brands, and customers could be confused. Google has one brand. Although Microsoft caught up to some of the core services Google is offering, that does not mean Microsoft can overtake the leader. In fact, if Microsoft wants to be neck-and-neck with Google when it comes to internet search, it may be the toughest battle the company has ever faced.

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This entry was posted on Saturday, September 29th, 2007 at 12:18 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.