Microsoft Windows is a series of graphical interface operating systems developed, marketed, and sold by Microsoft. Windows was introduced in 1985 as a graphical operating environment for MS-DOS regarding to the growing number of users interest in graphical user interfaces (GUI). As a result, the world’s personal computer market is gradually dominated by Microsoft Windows with over 90% market share, surpassing Mac OS, which had been introduced in 1984. In September 2013, Widows incessantly introduces different versions of Windows for personal computers, mobile devices, server computers, and embedded devices, for instance Windows 8, Windows Phone 8, Windows Server 12, and Windows Embedded 8. II. Concepts
1. Cost leadership and Differentiation
“Cost of leadership strategies are used by businesses to create a low cost of operation within their niche. The use of this strategy is primarily to gain advantage over its competitors in the same industry by reducing operation costs.” Competitive advantage is one the benefits a firm can get. Moreover, by increasing the profit and minimize the cost of production is also give an advantages to the company to earn more profit. Moreover, by increasing the market or the demand of the market is also giving the corporation more opportunities to earn more profit. It has created a niche for itself in the software field in which the Windows operating system is dominating almost 95 percent of personal computer industry. The ease of using and comparatively lower costs for the products has enabled them to become the leaders in software industry. Cost of leadership strategies are pursued in conjunction with differentiation strategies. The differentiation strategies are also one of strategies that the Microsoft Corporation is implementing. The differentiation strategies are involves by making differentiating products or services in comparison with competitors’. Furthermore, new products must offer to customers by their innovative, unique, and valuable features. Microsoft uses the product differentiation strategy based privileges. Privileges stable Window XP was launched in 2001. This windows version uses a new wizard that is easy to configure settings in the Internet and network seashell, and the addition of plug and play facilities are increasingly varied. Besides, Windows XP includes a software "firewall" for security. Recently, in order to compete with the biggest competitors Apple.inc, Microsoft Corporation are also provided software for Mac such as Microsoft Office Mac. This is one of the strategies that Microsoft Corporation has using. With this strategy, Microsoft Corporation is able to make more profit and able to compete with other competitors in this industry. 2. Versioning
“Versioning means offering information product in different versions for different market segments. To maximize profits, a company wants to make the total value as large as possible and extracts that value as much as possible. This objective leads to the two basic principles for designing a product line of information goods.” Offer versions tailored to the needs of different customers, A full line of information products will maximize the total value of the information you are providing Design these versions to accentuate the needs of different groups of customers. Emphasizing customer differences allows you to extract more of the value you have created, as each customer selects the version that best meets his or her needs. When Microsoft Corporation determines how many versions that will be offered to customers, it will analyze products and eventually make decision about the integration of Microsoft Window and Offices which is in bundling form. “Bundling is a special form of versioning in which two or more distinct products are offered as a package at a single price.” Microsoft Office bundles all components in a package, such as Word, Excel, and Power Point. It is amazing that...
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