Key Economic Factors of Microsoft Corporation.
As a dominator in both the PC operating system and office suite markets, Microsoft Corporation expose themselves to the cloud-based computing model presents execution and competitive risks. They are transitioning to a computing environment characterized by cloud-based services used with smart client devices. Their competitors are rapidly developing and deploying cloud-based services for consumers and business customers. The pricing and delivery models are evolving, and cause economic growth to move slower. They may not be able to adequately protect their intellectual property rights. Protecting their global intellectual property rights and combating unlicensed copying and use of software and other intellectual property is difficult. While piracy adversely affects U.S. revenue, the impact on revenue from outside the U.S. is more significant, particularly in countries where laws are less protective of intellectual property rights. As a result, their revenue in these markets likely will grow slower than the underlying PC market. Similarly, the absence of harmonized patent laws makes it more difficult to ensure consistent respect for patent rights. Throughout the world, they actively educate consumers about the benefits of licensing genuine products and obtaining indemnification benefits for intellectual property risks, and they educate lawmakers about the advantages of a business climate where intellectual property rights are protected. However, continued educational and enforcement efforts may fail to enhance revenue. Reductions in the legal protection for software intellectual property rights could adversely affect revenue. In conclusion, the economic growth is the main key factor for Microsoft Corporation and this reason likely to continue due to the globally affect issue on the intellectual property rights and unlicensed copying and use of software worldwide. The company in its life cycle
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