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Roles of ict in business
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Some products generate value only when they are combined with others, otherwise they have small or no value at all in isolation (Katz and Shapiro, 1994, p. 93). This is so called network effect – the fact that higher consumption of specific products makes them more valuable (Sundararajan, 2003, p.1). Another scientist Leibenstein, calls this effect as “bandwagon effect”- “the extent to which the demand for a commodity is increased due to the fact that others are also consuming the same commodity” (Besen, 1999, p.1). The economical base of network effects has received a huge attention, since it appears to be important in understanding the key features of modern high-tech industries (Bresnaham, 2001, p.2). Transportation systems, telecommunication systems, etc. exhibit network externalities, especially the IT market (Lee and O’Connor, 2003, p. 242). Operating systems of computers and compatible software are some of the examples of products experiencing network effects. Users prefer to have an operating system on which they will be able to install a large number of applications (Fisher, 2000, p.181).
The purpose of this paper is to understand the how the network effects of Microsoft’s products contributed to its rise and dominance in the market. In order to answer this question, the following points should be explained and analyzed. First of all, the environment of network industries in which Microsoft operates must be discussed. Moreover, such terms as “critical mass” and the way it is generated; “tipping points” and their impact on the products’ future, etc. should be described. Furthermore, the strategies and tactics, which are used by Microsoft to keep its positions in the market, should be outlined.
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...uct (Economides, 1998). Also, Microsoft bundled Internet Explorer to its operating system, aiming to create a similar installed base for IE so that it would create an entry barrier to rival browsers. They moved the entry of competitors. More over, it is important to mention that a “firm like Netscape has less incentive to develop and write software applications if Microsoft can develop its own version of these software applications and bundle them with Windows” (Clements, 2002, 13).
The technical development of the Ethernet technologies also helped Microsoft. According to the With Paper, several millions were invested in intra-net networks, into servers, working networks etc. That made Microsoft first company whose products were able to operate in huge networks. This in turn, attracted large organizations and government institutions to Microsoft’s product.
United States versus Microsoft Corporation case was a set of combined civil engagements filed against Microsoft relating to the Sherman Antitrust Act by the Department of Justice. In the case, the Department of Justice purported that Microsoft abused monopoly supremacy on PCs in its control of OS sales and web browser software sales (Lohr& Brinkley, 2001). The conflict evolved around the integration of the internet explorer browser software in Microsoft’s Windows OS; a move that was argued to restrict web browser competitors like Opera and Netscape from accessing the browser market. Microsoft argued that it did not have a case to answer and stated the misfortune was the result of the fierce competition and innovation strategies in its industry (Glader, 2006). The following paper aims at analyzing the merits generated from the final settlement of the case and outlines the parties that benefited and those whose interests were harmed.
Microsoft has devoted huge amounts of effort to marketing in developing their products and services, as well as to the integration of their software products with one another in an attempt to create a seamless and consistent computing environment for the user.
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
...ctioned, communicated, and performed their daily activities. In doing this however, they must stay on top of other competitors by creating new innovative ways to attract the consumers. Some had a long history while others had a short one. Some were provided great feature while others didn’t do so well in this area. One thing is for certain, each operating system provided a use for many consumers that helped not only in the personal lives of many but also within the business world. As we see the history shows that once upon a time what began as a way to for businesses to operate has now turned into a way that people communicate. Technology continues to grow and advance and with that waiting to see what the future holds is a mystery but I’m certain that it will be world of amazement especially seeing where operating systems have come from to where they are currently.
The following paper analyzes the initial release of Microsoft's XBOX 360 gaming system release into the United States and the changes that occurred with the supply, demand and pricing of the product in the months following its release. The social science of economics tells us that supply, demand and price are closely related to one another and have a significant on how much of a particular good is purchased and the rate at which it is purchased by consumers. The XBOX 360 phenomenon is a solid example of the impact that changes in supply, demand and price have on the marketplace and the rate at which goods are purchased.
"Microsoft Corporation, is a multinational computer technology corporation with global annual revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market. Microsoft possesses footholds in other markets, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets both computer hardware products such as the Microsoft mouse as well as home entertainment products such as the Xbox, Xbox 360 and MSN TV" ("Microsoft").
Microsoft, one of the largest corporations in the world today, employs over 93,000 people and is a public, multinational company that manufactures, licenses, and supports a wide range of software products for computers and is most widely known for its Microsoft Windows operating system. Microsoft not only markets computer hardware products such as the Microsoft mouse and the Microsoft Natural keyboard, but it also manufactures and sells home entertainment products including, the Xbox, Xbox 360, and Zune. It also holds assets in other markets including the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia.
In this paper, team B will discuss the internal and external factors of the Microsoft Corporation. We will explain how these factors affect the four functions of management, planning, organizing, leading, and controlling. Also, we will explain how globalization, technology, innovation, diversity and ethics will be delegated to manage the different factors. Microsoft Corporation was established in 1975 in Albuquerque, New Mexico producing software for developing, manufacturing, licensing, and support for range of software products and service for different type of computing devices. Microsoft grew from six employees to the largest personal computer software company in the world. By 1978, Microsoft earned $500,000 in the first quarter, and by the end of the year they earned revenue of $1,000,000. In the early 1980s Microsoft, in collaboration with IBM they released MS-DOS as their first 16-bit operating system. However after the late 1980s, Microsoft started to build its reputation by creating the Microsoft windows operating system and Microsoft office product, which includes internet explorer, excel, PowerPoint, and word programs. Then in the late 1990s, Microsoft teamed with Sega to incorporated their windows software package into the game developer’s Dreamcast hardware. Also they developed their own gaming system called the Xbox and that eventually was replaced by the xbox360. Microsoft has come a long way and is no longer just a worldwide leader in computer programming but also a major part of the technology world. Microsoft windows have been the flagship and accounts for most of its revenue for Microsoft: but the company has also branched ...
Microsoft’s mission of placing a “PC running Microsoft software on every desk and in every home” drove their overall strategy early on. Depending on the business segment within Microsoft, one would see in place very different business models as the strategy for each line of business could vary. In the operating system (OS) segment, Microsoft initially brought in an existing product and modified this (MS-DOS) to work with the Intel microprocessor, which were the “brains” of the IBM PC. Microsoft partnered with IBM to provide the operating system for the IBM PC. In addition to developing Windows, Microsoft during this period was working to write applications for the Apple OS.
“His agreements with hardware manufacturers have often served to prevent the success of rival products even when they are already on the market and Microsoft versions have yet to be completed. In 1995, the development of Windows 95, a revolutionary operating system, drove hardware manufacturers to produce computers with more memory and more hard disk space. Microsoft thus effectively compelled the entire computer industry to follow its lead. Such practices involved Gates and Microsoft in legal struggles over alleged anticompetitive practices and copyright infringement throughout the 1990s”(McGuire 1). With their more advanced operating systems they had to have more advanced computers that can run them but the other companies couldn't update their operating system as fast.
The standardized quality of MS Windows98 has really made the PC market as a whole take a rocket boost from the past. Most people who oppose this stance would say that standardizing a product wouldn’t cause anything but a monopoly. This is fiction because people choose products that are simply reliable and of good quality. The success of Microsoft’s operating system hasn’t been used to cause a monopoly in the browser marker, but to increase the quality of their software. A statement from Bill Gates on the 7th of December stating “ I am proud of the work our people have done to bring the benefits of the Internet to consumers, and I am confident that the courts ultimately will uphold the importance of the freedom to innovate.” The intensity of the Internet lies in it openness, freedom and incredible reach. It is physically impossible for any individual or company to be its controlling switch, as the number of Internet users continue to grow by easy access due to Internet technologies being added to quality operating systems such as Windows. Internet user will constantly demand high quality and maximum choice, and will travel to wherever they receive the best value for the money and time. As consumer interest in the Internet continues to grow, Microsoft’s role will be what it always has been. Aimed to provide the software building blocks for a rich computing experience and to build into that software all of the open Internet standards, protocols and platforms services which enable developers to write great applications. Even though Microsoft has included Internet capabilities in its Windows operating system since the launch of Windows 95, the Windows platform also provides excellent support for other leading browsers besides Microsoft’s own Internet Explorer.
Microsoft is currently the largest company in the computer industry. With a market capitalization of $291 billion, Microsoft has built an empire by dominating software sales for personal computers. Stock growth over the past 25 years has increased by more than 30,000%. However, Microsoft’s growth has substantially decreased since the market collapse of 2001(Niemond 25 April 2007).
Microsoft is one of the leading software companies in the world and it controls substantial shares of computer operating systems. A part from operating systems, Microsoft supplies the world with other products, such as the video game console Xbox, Office Software, digital music players, server storage software, CRM applications, and Zune. In the modern world, Microsoft has embraced the idea of globalization while it has exploited current technology to increase its global competitiveness. Therefore, this paper examines how globalization and technology have influenced Microsoft Company. Moreover, the paper applies industrial organization model and resource based model to assess if Microsoft could earn high returns. Finally, the paper does an assessment of the vision and mission statements and concludes how the stakeholders influence the success of Microsoft.
Corporate Networks in organisations can be complex structures that “requires a great deal of attention” (Clemm 2007). Even small companies can have quite complex networks that are a considerable investment to the business. The notion that corporate network management is a cost to a business rather than a continual beneficial investment is a naive assumption that requires further investigation to the benefits that network management brings. Clemm (Clemm 2007) states in his text that the ultimate goal of network management “is to reduce and minimize total cost of ownership”, improving operational efficiency and lowering cost. Clemm (Clemm 2007) also notes that “Network Management is not just related to cost and quality”, which will be an continual concept presented throughout the report. The report will address key issues with corporate network management and ultimately argue and justify that corporate network management must be seen as a positive benefit to the business and not as a continual expense. The supporting articles will also provide sound evidence that networking is crucial to a business’s processes and production which can be seen from the OpenSSL Heartbleed Security vulnerability fiasco (Nieva 2014) or the QANTAS Amadeus system failure (Heasley 2012).
Microsoft is the leading and the largest Software Company in the world. Found by William Gates and Paul Allen in 1975 Microsoft has grown and become a multibillion company in only ten years. It all started with a great vision – “a computer on every desk and every home” - that seemed almost impossible at the time. Now Microsoft has over 44,000 employees in 60 countries, net income of $3.45 billion and revenue of 11.36 billion. Company dramatic growth and success was driven by development and marketing of operational systems and personal productivity applications software.