The paper "Microsoft Corporation’ s Diversification Strategy" is a wonderful example of a case study on management. Microsoft Corporation is a global leader in the PC industry and is valued to be worth $36.2 billion. This said it is normal that the sales of PC would not be forever as successful. In the fourth decade of the existence of the PC industry, there are signs of saturation, maturity, and stiff competition. In today’ s very competitive world, corporations must fight it out vigorously and articulately to become successful in any industry and work exceptionally harder to stand out and maintain that success.
Each and every component of a corporation’ s business must be as efficient and effective as possible in order to form sustainable competitive advantages. Apart from diversification and corporate strategies, marketing strategies too must be a priority for these corporations. Microsoft Corporation has been very successful in its diversification strategies and this has led it to the pinnacle of an industry that is now flooded and very competitive. Microsoft has created a variety of products and services, the very first being the Windows operating system and Office software suite.
These products serve as the cornerstone of the business but they cannot entirely depend on that considering the competition they face from other players in the industry. Microsoft, therefore, has entered the video game consoles, enterprise software, computer peripherals, software development tools, internet access services, and interactive television. Originally, Microsoft was founded by Bill Gates and Paul Allen in 1975 had a vision of selling its version of the programming language known as BASIC. The company grew by modifying BASIC for other computers and in four years they moved to a bigger location in Seattle Washington (Michaels 1977, p.
78). The success of Microsoft made IBM in 1980 to choose Microsoft to develop the operating systems for the new line of PCs. Gates bought quick and dirty operating systems for $50,000 from a local Seattle programmer and renamed it Microsoft Disk Operating System (MS-DOS) and the revolution of the computer industry began. In the mid-80s, they developed Windows versions that were to compete with the Apple Macintosh Operating System. In 1993 Microsoft introduced Windows NT which buoyed their competition with UNIX.
Currently, the market share for windows is 93% of the number of positions in the world against 4% of the Mac Os and Linux which is 1% (Thurrott, 2001).
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