1. What are the three or four most important drivers of Microsoft’s business model over the past 10 to 15 years that have accounted for the company’s spectacular results?
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.
Microsoft was able in the OS segment to double their revenue per PC when Windows 3.x emerged which still needed MS-DOS to run. Most of the sales Microsoft made were to OEMs who would take the additional step of installing Windows on a computer’s hard drive. This strategy was effective in that the cost of production was relatively low, as an OEM may only need a single master copy to do the installation. The costs to Microsoft would largely be bore in R&D expense rather than production. As part of the Microsoft business model for this segment, Microsoft designed their OS to need periodic upgrades. The upgrades did come at a cost, and in essence, Microsoft was able to create an “annuity” stream for the Microsoft OS segment. In this segment, Microsoft had a monopolistic structure that allowed them to realize huge returns, especially during such a period of technological growth and rapid obsol...
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...nning pirated versions of Windows, whose owners tried to circumvent the (legal purchasing) system and reduce their costs. Other individuals and in emerging nations have purchased PCs with Windows “Starter” editions in which the cost of software is lower. The items mentioned here are ways Microsoft is trying to deal with the threat of Linux.
In helping avert the threat in the area of development of web services (such as .NET), Microsoft has offered to support partners and developers of programs to the tune of $2 billion. This may provide some incentive to programmers; however, the results remain to be seen. In the search business for Microsoft MSN to compete with Google and Yahoo, Microsoft spent approximately $200 million in advertising. In addition to pure Internet searching, Microsoft is developing the search functionality to take place across the Windows platform.
Microsoft has greatly impacted the State of Washington and has created an innovation powerhouse created by a man with a "impossible dream". Microsoft Corporation is one of the most well known and successful businesses in the state. Along with Boeing, and Amazon, Microsoft's value sits very high in the financial world. The founder, Bill Gates, worked very hard to rise to the challenge of competing with other technology companies. With all his hard work and effort he made his dream of success come true.
Microsoft is an American company that was founded by William Henry Gates III, as known as Bill Gates, and his his high school friend Paul Gardner Allen in 1975 April 4. But unluckily, Paul Allen resigned from Microsoft in 1983 after developing Hodgkin’s disease. In 1985 October 20, Microsoft released Microsoft window. It is the first original operating system. It is a graphical extension for MS-DOS. Even though, it’s not handy like nowadays Microsoft window. Then in 1990, Microsoft introduced Microsoft office, which is a bundle office productivity application with Microsoft Word and Microsoft excel. The Microsoft Word was the first application that could display italics. And the Microsoft Office would be available for free for all the PC World’s computer that is produce on that same year in November. In the 2000 February 17, Microsoft released Window 2000 operating system, and according to Microsoft it is the most safe operating system in the world at that time. But still, there are so many problems and glitches need to be fixed. Besides there are mutable computer viruses are made specially to attack Window 2000. Rush to gain back the sales. In the 2001 October 25 Window xp is available. The new operating system fix most of the problem. Although some of the user were still complaining the system that it will take your information, but in the 2007 January, there are 76% of people in the entire world are using the operating system.
The now highly profitable and cash rich Microsoft diversified into a wide variety of software products including: compilers and interpreters for programming languages and word processors, spreadsheets and other office software some of these products were successful, and some were not. By the turn of the millennium, many of Microsoft's software products dominated the market in their respective categories.
Two friends named Bill Gates and Paul Allen founded Microsoft in Albuquerque. They started out with a small company and turned into an empire that employs 100,932 people (as of December of 2013). Before there was Microsoft there was Traf-O-Data, which kept track of traffic data, which at that time was groundbreaking. Microsoft is now a multibillion-dollar company and is a household name. Microsoft has now expanded to selling many different, successful products. Some of their very popular products include Skype, Xbox, the Surface tablet and Bing. Microsoft has 1.5 billion dollar revenue. Even though Microsoft had market dominance at one...
Microsoft Corporation is the market leader in the U.S. computer software company. Microsoft was founded in 1975 by William H. Gates III and Paul Allen both had met during their studies , through their common love of programming with the PDP -10 computer from Digital Equipment Corporation. In 1975 they collaborated on the first version of the programming language BASIC for the MITS Altair computer, the first personal computer . This led to the creation of Microsoft in Albuquerque, New Mexico , in the same year. In 1979, Gates and Allen moved the company to Redmond , Washington. Allen resigned in 1983 for health reasons , but later rejoined the Board. The company went from 15 employees and $ 500,000 of revenue in 1978 to have more than 22,000 employees and 11.4 billion dollars in revenue in 1997.
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.
Windows and Office continue to supply most of Microsoft¡¦s profit. But that profit is being squeezed as more and more companies are using Linux servers and even Linux desktops. For example, China is developing its own OS (Operating System) and planning to use for the whole country (their intention is to keep Microsoft away from the country). The company has been forced to slash prices for some key customers to avoid large scale defections, which leads to difficulties to locate the right price because high price may reduce the market share, but low price to compete against open source may reduce its core revenue.
Gates purchased a system QDOS (Quick and Dirty Operating System) for $50,000 from another company, changed the named to MS-DOS and sold it to IBM. So on the contrary to public opinion, Bill Gates did not write MS-DOS, he bought it, changed it slightly, and put his name on it. In order for Microsoft to get to the top, they had to have a very good business strategy. Their strategy is to sell software at low prices, until people are hooked.
Microsoft, from its inception, has been known for its software, especially its Windows platform. It has changed the way we operate computers and through its software, has made the computer user-friendly and very efficient. Microsoft, however, does not want to only specialize in the software department. They have thus expanded their excellence in other departments such as gaming, music and hardware.
The Internet was growing at an outstanding pace and many people believed that it was going to affect every business. However, Gates dismissed the Internet and Netscape as unimportant, saying that they would have no impact on him. He quickly found out how wrong he was and how these new threats in the environment were going to affect his business, and he managed to find the way for converting this threat into an opportunity. Thus, he changed the direction of his strategy and he entered into a new business: the Internet world. He realized that he was missing out an opportunity in the market that could make his company grow in a huge way; so he adopted a follower strategy, which is very ironic knowing that they have always been the leaders. He strategically fit-in by matching his resources and strengths (capital, know-how and people) to the changing environment. As Netscape was ahead he needed to act quickly before it was too late, so he took advantage of his power as a leader and focused on regaining position over Netscape by adding the browser as an integral part of Windows, giving free copies to the public and forcing manufacturers to install the browser on the machine. In other words, he used his best existing resource which was Microsoft Windows as part of the strategy and used his monopoly to stifle competition and defeat its rivals. However, this strategic choice could have never succeeded at the business level, if Microsoft wouldn’t have the competitive advantage of understanding the customer and the market as they do.
Microsoft was originally created in 1975 by Bill Gates and Paul Allen. They first introduced their software package, Window 1.0 in 1983, the first package to consist of a mouse which helps navigate a PC. MS-DOS commands were previously used to operate computer systems, however people found these extremely hard to understand. This Windows 1.0 package was a key turning point in Microsoft emergence. As time progressed Microsoft created updated versions which consisted of advanced graphics, built-in internet support, dial-up networking and much more (Microsoft, 2011). Windows packages started from Window 1.0 to the current version whic...
Microsoft has spent about 1.8 million dollars for promoting Windows 8. The estimated budget to solve the issues by migrating it to cloud and implementing other techniques would cost including both technical and non technical resources. When Windows 8 and surface was launched initially, Microsoft gave a high promoting; however, the organization has spent more for Windows 8.1. According to Winsupersite reports, around $241 million on retail Windows was spent by Microsoft. So, at present it is planning to spend around $405 million. Out of this $131 million is said to be identified with incentives and offers, while the remaining $274 million will be spent on advertising and working costs.
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.
Microsoft has always been known as a software company, and not well known for its hardware. In fact, the only hardware that Microsoft sells to the retail market is branded peripherals. In its heyday, Microsoft was a market leader, bring an operating system to the masses, and leading in internet search. In recent years, however, most of the moves that Microsoft has made have not been in a market leader position, but have been in response to competitors threatening Microsoft’s positions.
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 ...