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 software products. The company has broken down its internal structure into two product groups: platform products and an applications and content product group.
In the IBM-clone market, Microsoft has successfully marketed not only its MS-DOS operating system, but also the Windows, Windows95 and WindowsNT operating systems. Although the Windows95 operating system was delayed for several years, the company was successful at marketing the operating system beginning in late 1995.
On the a...