1. Microsoft/Yahoo! search partnership. Unless you've been living in a cave, you've heard about this so I won't go into it here.
2. The government's Cash for Clunkers program is working so well that it's already burned through its original $1 billion funding in first week! Almost every automotive manufacturer is claiming July is their best sales month for the past year.
So, what could these 2 events possibly have in common?
Well, I am posing this question -- Would you rather be working for Microsoft battling Google or working for GM to turn the company around?
Both are similar challenges in my mind. You have to convince consumers to switch from their current preferences to your low market share brand.
Comscore states Bing is making some progress. Its search share went from 8.0% to 8.4% from May to June. I guess that's progress. But Google holds nearly 70% share. The bad news is most consumers still can't tell the difference and many use Google out of habit. It will indeed take something dramatic like the Yahoo! deal to move the needle for Microsoft. But they're just buying share. The marketing and engineering group at Microsoft still faces an uphill challenge shifting consumer perception...and behavior.
Now, let's look at GM. Its US market share has dropped like a rock in water for the past 2 decades (18.9% in July). Last year it lost its #1 global leader, by volume, title to Toyota. Years of making boring cars and having too many brands or makes (in my opinion) led to its bankruptcy filing recently. Now that it has exited in just over a month, it has much to do to rebuild consumer confidence in the auto manufacturer. While Microsoft faces 1 formidable foe, GM faces many Japanese, Korean, American, and German competitors. Perhaps its return to leasing with partner GMAC and the $2 billion extension of the Cash for Clunkers program will help stimulate sales.
Right now, I applaud the men and women who are working for either company and wish them luck in the battle that lies ahead...
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