Distribution channels pf Mircosoft

Microsoft is the world 's largest software company, who operates and distributes its products throughout the world (Company information). Microsoft’s distribution largely depends on hardware manufactures to pre-install their software (Msdn). “Windows Division revenue growth is largely correlated to the growth of the PC market worldwide, as approximately 75% of total Windows Division revenue comes from Windows operating system software purchased by original equipment manufacturers ("OEMs"), which they pre-install on equipment they sell” (Microsoft annual report ). Often times, Microsoft will distribute software in bundles rather than individually such as MS Office Suite (Msdn). Microsoft distributes products through four main channels; OEMs, distributors and resellers, and online (Microsoft annual report).
Distribution Channels OEMs
Microsoft distributes software through OEMs that pre-install their software on PCs, servers, smartphones, and other devices that they sell to end customers (Microsoft annual report). The largest component of the OEM business is Windows pre-installed on PCs (Microsoft annual report). OEMs also sell hardware pre-installed with other Microsoft products, including server and embedded operating systems, and applications such as our Microsoft Office suite (Microsoft annual report). In addition to these products, Windows Live Essentials suite is also marketed this way (Microsoft annual report).
OEMs can be broken down into two categories. Direct OEMs consist of the largest; Microsoft has direct agreement with them (Microsoft annual report). Microsoft has agreements s with virtually all of the multinational OEMs, including Acer, ASUS, Dell, Fujitsu, HTC, Hewlett-Packard, LG, Lenovo, Nokia, Samsung, Sony, Toshiba, and with many regional and local OEMs (Microsoft annual report). The second category of OEMs consists of lower-volume PC manufacturers (system builders), which source their Microsoft software for pre-installation and

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