In actuality, Microsoft and Google are behemoth of information technology industry that operate internationally and have proved to be successful in their business development, regardless of the economic recession and global financial crisis. Today, companies are successful, although their financial performance differs. At this point, it is worth mentioning the fact that, even though the quarterly revenue of Microsoft grows slower compared to Google, Microsoft’s profits are still comparable to those of Google.
In fact, revenues of Google grow faster for the company attempts to expand its market share fast and develop new businesses. Entering new industries and introducing new products help Google to increase their revenues. On the other hand, Google has many projects but not all of them are successful and each failure leads to substantial financial losses. As a result, the profitability of the company is comparable or even lower compared to Microsoft (See App. Table 1 and 2).
In this regard, Microsoft is more successful because the company has a stable performance and maintains its stable position in the market. Thus, the company maintains high profits and revenues. Unlike Google, Microsoft does not undertake risky projects. In such a way, the company save costs and invest wisely in projects that are reliable and can bring profits. On the other hand, the company fails to expand its market share and boost its net income as fast as Google does.
Thus, in spite of the deterioration of the economic situation, Google and Microsoft still perform well, although the position of Microsoft is more stable, while Google develops faster. Microsoft has stable revenues, while revenues of Google depend on the success of its risky projects.