Over the past three decades, technology has transformed the way we work, play and communicate. Currently, accesses information and people around the world in an instant. New technologies have opened the door to innovations in all fields of human endeavor, delivering new opportunities, convenience and value to our lives.
Microsoft Corporation develops and manufactures a wide range of software products. These include desktop and network operating systems, server applications for client / server environments, desktop business applications and office applications for users, interactive programs and games, tools for working in Internet and software development tools. In addition, Microsoft offers interactive (online) services, publishes books on computer topics, and produces peripheral equipment for computers, engaged in research and development of computer technologies.
What is the firm's history of profit? Does it earn profits that are above or below the average for that industry? What might account for this?
The company recorded revenues of $62.5 million during the financial ended June 2010, an increase of 6.9% over 2009. In 2010, the US, the company's largest geographic market, accounted for 57.9% of the total revenues. Microsoft generates revenues through five business divisions: Microsoft business division (30.6% of the total segment revenues in 2010), Windows & Windows Live (28.7%), server and tools (24%), entertainment and devices (13.1%) and online services (3.6%).
Revenue by Division
In 2010, the Microsoft business division recorded revenues of $18,909 m, an increase of 0.2% over 2009. The Windows & Windows Live division recorded revenues of $17,788 million in 2010, an increase of 21.1% over 2009. The server and tools division recorded revenues of $14,878 million in 2010, an increase of 4.2% over 2009. The entertainment and devices division recorded revenues of $8,114 million in 2010, an increase of 1% over 2009. The online services division recorded revenues of $2,198 m in 2010, an increase of 4.2% over 2009.Revenue by Geography
The US, Microsoft's largest geographical market, accounted for 57.9% of the total revenues in 2010. Revenues from the US reached $36,173 m in 2010, an increase of 9.4% over 2009. Other countries accounted for 42.1% of the total revenues in 2010. Revenues from other countries reached $26,311 m in 2010, an increase of 3.6% over 2009. The firm earns profit are definitely above the average industry profit, as the firm is enjoying the industry monopoly and have the core competencies in the industry. Microsoft has developed a strong brand image since its inception in 1975. Since 1998, the company has appeared regularly in the Harris Interactive Annual Best Brands poll. According to the Inter-brand ranking of the Best Global Brands in 2009, Microsoft ranked third with a brand value of $56,647 m in 2009. Strong-brand image makes Microsoft a preferred operating system over its competitors. In addition, strong-brand image promotes greater trust in the company's product and services, which boosts the demand for them. (Daniel, 2007)
Is the firm relatively high or low risk? Do its profits vary significantly from to,, or are its profits relatively stable?
The firm recently facing the low risk, due to the reason the companies do not have strong competitors, and Microsoft have already captured the most market ...