Analysis of Outlook for Microsoft Operations
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Founded by Bill Gates in 1975, Microsoft has grown to be one of the largest American companies with a worldwide presence in computer software. The company dominates the personal computer software market, and also participates in a number of other related markets, including personal computer books and input devices (the mouse or trackball often used for input with computers). The company competes in both the Apple and IBM-clone market, and has grown from a small company with one of many different operating system products to the dominant company in the industry. In fact, it was the licensing of its operating system (MS-DOS) to IBM and IBM-clone manufacturers which cemented the company's future during the early 1980s when the industry did not have a de facto operating system standard. In fiscal year 1995, the company had revenues approaching $6 billion (1995 Microsoft 10-K Filing, 1995, p. 17). This research examines the company's current position and the outlook for its operations.Microsoft develops, manufactures, licenses, sells, and supports a wide range of software products, including operating system platforms for personal computers, workstations, and servers; business and consumer applications for productivity, reference, education, and entertainment; and development tools. Microsoft also sells computer books (through Microsoft Press) and input devices, and is engaged in the research and development of on-line and advanced technology
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Digital Equipment Corporation, and Microsoft's Chief Operating Officer, Robert Herbold, was formerly with Procter & Gamble.
Another strength that Microsoft has is its sheer size in the industry. Consumers and businesses making information technology choices may be inclined to purchase Microsoft products because they know that the company is financially stable and will be around in coming years. Similarly, a variety of third-party software vendors write computer programs and utilities for Microsoft environments, so there are more products to choose from for Windows than for OS/2 (a competing operating system) (Tisi, 1996, p. E8). This gives Microsoft a significant competitive advantage, and makes entry to the market difficult for new and emerging companies.
Weaknesses
The same management diversity that can help the company thrive as it markets to home computer users and creates a more commodity oriented approach to its products may hinder the company's ability to remain competitive in its core businesses. This is because there is a dilution of expertise in the technical area as the management has become infused with professionals from other industries. While these managers bring much-needed variety and expertise to the com
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Approximate Word count = 1516
Approximate Pages = 6 (250 words per page)
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