The main competitors in the U.S. in the mobile field are Google and Facebook Inc (NASDAQ:FB). Although Facebook surpassed the Google Inc (NASDAQ:GOOG) Maps application, the search engine company is third in the list with Google Play, fourth with Google Inc (NASDAQ:GOOG) Search, fifth with Gmail and sixth with YouTube, exhibiting a clear dominance. Very far apart is
at the eighth place after attempting to create a map application last year that was a failure as it contained too many flaws and cost Scott Forstall, the software chief, his job.
So why did Google acquire Waze?
Although Google Inc (NASDAQ:GOOG) has the most popular map navigation software, it lacks social features in its mapping software. Waze’s acquisition could help the search giant get some of those social skills needed as it has a location-based platform that can be used to locate friends and share locations. Google Inc (NASDAQ:GOOG) has been trying to develop social characteristics in its applications, but its success was very limited. A clear example of this is Google+ that attempts to steal from Facebook Inc (NASDAQ:FB) a bit of the social media pie.
Moreover, Waze can add some other features to Google maps, such as better location-based ads and integration to the Android platform in a great way. Finally, the Waze application is available on Apple Inc. (NASDAQ:AAPL), so it will be a huge blow for the company that is trying to regain ground on mobile applications such as maps.
How will Facebook and Apple respond?
Apple Inc. (NASDAQ:AAPL) will probably improve its own map application rather than acquiring another company. It lost the perfect opportunity to do that very quickly and effectively by acquiring Waze. If Apple Inc. (NASDAQ:AAPL) develops a better mapping software, it could re-enter the mobile app arena but this will take time and patience, something some users are not willing to do. By removing Google maps from the iPhone, as it had done previously, the company could generate a single option for mobile users to choose from and oblige them to use Apple Inc. (NASDAQ:AAPL)’s application. This could slightly revert the trend.
Facebook Inc (NASDAQ:FB) has also slipped at a great chance to enter the mapping application world. Although it is the king in the social media sector, maps are increasingly important to users worldwide for navigation, sharing locations, avoiding traffic, knowing where you can find nearby stores or shops, and the most important thing is that it is a key for location-based advertising.
We should not discard a future acquisition by Facebook Inc (NASDAQ:FB) of a map application software company. This would give a perfect fit to its social media dominance as users could share locations and events. Furthermore, this would definitely drive more users to its webpage, which translates into more advertising and more revenue.
The technology industry is very volatile and companies must adapt to changes rapidly. Customers will always look for the better application or consumer experience and that means two words: constant innovation. At the moment, there is no discussion Google is the king in the U.S. mobile applications market. But Facebook has been stealing users and is now posing a threat to that dominance. On the other hand, Apple Inc. (NASDAQ:AAPL) is also a rival that must not be overlooked as it can become a big player when its mapping application is improved.
Vanina Egea has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Vanina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article The Mobile Battle: Round 2 originally appeared on Fool.com is written by Vanina Egea.
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