Microsoft Strategic Management

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Table of Contents
Background3
External Environment5
Porter’s Five Forces Model6
Force 1: Potential Competitors6
Force 2: Rivalry Among Incumbent Firms6
Force 3: Supplier Power6
Force 4: Buyer Power6
Force 5: Substitute Products/Services6
SWOT7
Strengths7
Weaknesses7
Opportunities7
Threats8
Capability and Resource9
Intangible9
Leadership and managerial capabilities9
Brand name9
Patent9
File systems patent10
Strategic Partnership10
Tangible10
Researching Centre and facilities10
Employee11
Strategies12
Recommendation14
Bibliography15

Background

It’s the 1970s. At work, we rely on typewriters. If we need to copy a document, we likely use a mimeograph or carbon paper. Few have heard of microcomputers, but two young computer enthusiasts, a nineteen year old kid and his twenty-two year old business partner (Bill Gates and Paul Allen) sold their first program to a little computer company in Albuquerque, New Mexico. The program was called BASIC, and it was the start of this company we call Microsoft. We see that personal computing is a path to the future.

In 1975, Gates and Allen form a partnership called Microsoft. Like most start-ups, Microsoft begins small, but has a huge vision—a computer on every desktop and in every home. During the next years, Microsoft begins to change the ways we work.

Starting in 1980, Microsoft formed an important partnership with IBM that allowed them to bundle Microsoft's operating system with computers that they sold, paying Microsoft a royalty for every sale. In 1985, IBM requested that Microsoft write a new operating system for their computers called OS/2; Microsoft wrote the operating system, but also continued to sell their own alternative, which proved to be in direct competition with OS/2. Microsoft Windows eventually overshadowed OS/2 in terms of sales. When Microsoft launched several versions of Microsoft Windows in the 1990s, they had captured over 90% market share of the world's personal computers.

We can take a look of the road map of Microsoft products, how it becomes a giant in the personal computer market.

In 1982 - 1985 (Windows 1.0) - Microsoft launched a first version of new operation system - Interface Manager is the code name and is considered as the final name, but Windows prevails because it best describes the boxes or computing “windows” that are fundamental to the new system.

In 1987 - 1992 (Windows 2.0) - Microsoft releases Windows 2.0 with desktop icons and expanded memory. With improved graphics support, you can now overlap windows, control the screen layout, and use keyboard shortcuts to speed up your work. Some software developers write their first Windows–based programs for this release.

In 1990 - 1994 (Windows 3.0 & Windows 3.1) - Microsoft announces Windows 3.0, followed shortly by Windows 3.1 in 1992. Taken together, they sell 10 million copies in their first 2 years, making this the most widely used Windows operating system.

In 1995 - 2001 (Windows 95) - Microsoft releases Windows 95, selling a record-setting 7 million copies in the first five weeks. It’s the most publicized launch Microsoft has ever taken on. Television commercials feature the Rolling Stones singing "Start Me Up" over images of the new Start button. The press release simply begins: “It’s here.”

In 1998 - 2000 (Windows 98, Windows 2000, Windows Me) - Windows 98 is the first version of Windows designed specifically for consumers. PCs are common at work and home, and Internet cafes where you can get online are popping up. Windows 98 is described as an operating system that “Works Better, Plays Better.”

In 2001 - 2005 (Windows XP) - Windows XP is released with a redesigned look and feel that's centered on usability and a unified Help and Support services center. It’s available in 25 languages. From the mid-1970s until the release of Windows XP, about 1 billion PCs have been shipped...
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