Microsoft

Microsoft

Company History

Microsoft is a global technology company best known for its ubiquitous Windows operating systems. Microsoft primarily acts as a software developer and publisher, with products ranging from the Microsoft Office productivity suite to the Xbox video game system. Microsoft's operations in this industry generate about 60.0% of the company's total revenue. Microsoft operates in this industry through three of its divisions: the Windows and Windows Live Division (WWL), through which it publishes its Windows operating system for PCs; the Server and Tools division, through which it publishes its Windows Server operating system; and the Microsoft Business Division (MB), which is responsible for its Office productivity suite.

As Microsoft is working in the IT industry, the products of the companies are very much same and the competition is very much high in this industry. As the competition is very much high, it is very difficult for new comers to enter into the industry; unless or until the company is coming up with something different that cannot be produces by any other firm. Microsoft is the market leader in this firm, its products are somehow different to other companies in this firm, and the best example is of Microsoft windows, on which the whole system is depending.

Microsoft's primary input is large amount of Capital with which it produces technological instruments through efficient labor on a very large scale. Microsoft has captured the technology industry all over the world with a variety of large Computing products. When production volume increases it is accompanied by proportionally lower costs of production, which decreases the cost (Richard, 2000).

Marketing Strategy

Microsoft's utter dominance of this industry was secured about two decades ago. In the early days of the personal computer, Microsoft's Windows 3.0 (released in 1990) competed with the Apple Macintosh and the Commodore Amiga. By the time Windows 3.1 was released in 1992, Windows had become the best-selling graphical operating system. The release of Windows 95 solidified Microsoft's hold on the personal computer market. This dominance became self-reinforcing as independent software developers and businesses alike sought a broad platform for their software. Microsoft periodically publishes a new version of its main Windows operating system, the current version of which is Windows 7. Microsoft also publishes separate versions of Windows geared for the server market and for mobile phones. Microsoft is expected to release the next iteration of Windows, Windows 8, in 2012.

Microsoft has also had success with its server-oriented operating system, Windows Server. Windows Server is designed to satisfy the unique needs of servers: efficient multi-tasking and the ability to handle numerous simultaneous users and large chunks of data. Though Microsoft is far from being the market leader in this segment, the division earned $17.1 billion in 2011, though only a portion of that - $2.8 billion - is attributable to the OS itself. The rest is derived from sales of licenses for its database server and related products and for service and support (Microsoft, 2009).

Microsoft's dominance in the operating system market has had huge ...