2. Microsoft Corporation
Type Public
NASDAQ: MSFT
SEHK: 4338
Traded as Dow Jones Industrial Average component
NASDAQ-100 component
S&P 500 component
Computer software
Industry Online services
Video games
Albuquerque, New Mexico, United States (April 4, 1975
Founded
(1975-04-04))
Founder(s) Bill Gates, Paul Allen
Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.
Area served Worldwide
3. Founder(s) Bill Gates, Paul Allen
Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.
Area served Worldwide
Steve Ballmer (CEO)
Key people
Bill Gates (Chairman)
Revenue US$ 73.72 billion (2012)[1]
Total assets US$ 121.2 billion (2012)[1]
Total equity US$ 66.36 billion (2012)[1]
Subsidiaries List of Microsoft subsidiaries
Website Microsoft.com
4. STRENGHT
Applications and operations divisions along with recently
created online service network divisions (MSN)
Flexible workforce through contingent workers for
seasonal/cyclical projects
Loyal, hardworking, and diverse workforce (20% minority, 26%
women) who, in addition to good compensation, have an
opportunity to do well financially through stock purchases
Multinational corporation operating through regional
subsidiaries to minimize cultural differences in more than 60
countries
New product, Neptune , is a Window's interface and is an
example of smart software
5. Relatively rapid product development processes that allow for
timely updating and release of new products
Revenues and profits rising at 30% a year with merger/acquisition
or investment in 92 companies over past five years
Software products have high name recognition, broad-based
corporate and consumer acceptance (Word, Excel, PowerPoint,
Access), and numerous powerful features that are in use
worldwide, thereby promoting standardization and competitive
advantage through their ease of integration and cost-
effectiveness
Top rating from Fortune for best company to work at and most
admired company
Windows 95, 98, 2000 series, and Windows NT are globally known
as the PC desktop operating system with a market share of about
88%
World's largest software company with global name recognition
and strong reputation for innovative products
6. Between 1990-1995, Microsoft leadership failed to correctly
anticipate the growth or popularity of the Internet
Bill Gates has become Microsoft's chief software architect but has
not yet developed a substantially new line of products
Dependency on hardware manufacturers to pre-install Microsoft's
PC operating system
Downside of product launches and deadlines contributes
substantially to employee burnout
Employee turnover has increased from 6% for a ten year period to
7.4%
Falling sales in the operating systems and server software sectors
Frequent reorganization, red tape, and autocratic atmosphere
dampen employee creativity leading to a loss of key personnel and
chilling of communication and innovation; 5-layers of
management
7. IRS audits in 1989 and 1990 revealed employment status of
contingent workers for whom Microsoft did not withhold taxes nor
allow to participate in Microsoft's Savings Plus Plan or Employee
Stock Purchase Plan, leading to a finding of tax liability for Microsoft
in the "permatemps" Vizcaino litigation
Little or no significant presence in the wireless market and Windows
CE has been disappointing
Not a key player in the Internet space and few products for Internet
applications
Perceived by many as a cut-throat competitor that uses its dominant
market position to marginalize competition by stealing/destroying
the competition's products, stifling product innovation, and
decreasing the availability of competitor products
Products have a single application focus and do not work well with or
on-top of other products
Reputation has suffered because of entanglement in antitrust and
"permatemps" Vizcaino litigation
8. Cheaper global telecommunication costs open new
markets as people connect to the Internet
Federal trial Judge Thomas P. Jackson's breach of
judicial discretion and conduct in the Microsoft antitrust
case clouded the proceedings in Microsoft's favor
Mobile phone applications and exploitation of personal
digital assistants represent a growth industry so that
strategic alliances could provide Microsoft with
opportunity in a market where it currently has little or
no significant presence
Popularity among people for Internet access
The demand for personal computers in American and
global markets remains strong despite the growth and
increasing popularity of personal handheld devices
9. Apple and Linux threaten Microsoft's 88% market share of the
desktop operating market
Between 1993-95, Sun Microsystems, Netscape, Oracle, IBM, AOL,
and other companies moved into the Internet space and defined it
while Microsoft failed to anticipate its growth or popularity
Currency exchange rates affect demand for application/operation
software and hardware, and fluctuating currencies can negatively
impact revenues in the global marketplace
Department of Justice antitrust litigation and current appeal
creates uncertainty among employees since its outcome is not
known
Hardware manufacturers (Sun Microsystems, Oracle, IBM) have
collaborated on new platform technologies that replicate much of
the value of Windows
10. Hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL,
and Apple) are issuing their own pre-bundled programs on their
own hardware
Linux influence growing from 7% in 1998 to 17% in 1999
Personal computers, mobile-phones, personal digit assistants,
entertainment-oriented hand-held computers, and similar
wireless products for Internet access do not require Window
operating system products
Rapid development of mobile devices that will displace/replace
personal computers
Software piracy of commercial and consumer applications
software on a global scale threatens revenue streams
Technology life cycle is shorter and shorter
Unix dominates high-end mission-critical applications and its
customers do not believe Windows can handle these operations
11. Company / developer Many
Programmed in Various
OS family Unix-like
Working state Current
Source model Free and open source software
Initial release 1991
(2012-09-01)
Marketing target Personal computers, embedded devices, mobile devices,
servers
Supported platforms Alpha, ARM, AVR32, Black fin, C6x, ETRAX CRIS, FR-V,
H8/300, Hexagon, Itanium, M32R, m68k, Micro blaze,
MIPS, MN103, OpenRISC, PA-RISC, PowerPC, s390,
S+core, SuperH, SPARC, TILE64, Unicore32, x86, Xtensa
License Many[3] ("Linux" trademark owned by Linus Torvalds[4] and
administered by the Linux Mark Institute)
12. STRENGHT
Linux is open source software so anyone can use it.
Its free and cost effective
Strong alignments with companies like IBM, HP,
DELL, INTEL, ORACLE etc
It is no 2 in the market with fast growing market share
12.7%
No backdoors security issues
Consistent revenue growth with strong customer base
13. It is designed for server application.
Less user friendly then the Windows OS
Lack of standardized graphical user interface
Compatibility issues
Don’t have large number of software
designed for it
Lack of product standardization
14. Diverse industries interested in Linus. Eg
Boeing’s phantom works, Dream works etc
Collaborations to provide Linux compatible
products . Eg Oracle, Sap etc
Linux into consumer electronics. Eg Sony PS
Big corporate and governments interests E.g.
Brazil government has implemented Linux
Economic Slow down
Increasing demand for open source software
15. Monopoly of Microsoft in desktop systems
i.e. 90.68%
Large innovative product lines offered by
Microsoft. E.g. Microsoft ( windows, office
servers, Developer Tools, Windows mobile etc
Microsoft is the largest player in the Market
Technology life span getting shorter and
shorter
18. This CPM suggest that Microsoft is still in good position
with regard to Linux
This CPM suggest that both companies are above
average and in strong position.
Since this both are in the field of IT and here innovation
plays a great role so Microsoft gives priority to
innovation than Linux
Linux gives more priority to Web if it started to giving
priority to OS part then it can be the top Company so
Microsoft should think on it and makes a competitive
strategy.
19. As Microsoft has clear advantage in terms of
application, big support infrastructure and in
terms of security over Linux.
Microsoft is in unique position to fulfill
enterprises software and brings different
version of OS.
Microsoft has user friendly accountability as
well as standardization of product quality.
20. Linux is best doing in Server application than
Microsoft
Linux has wide range of application in mobile,
java, android etc than micrososft
Linux is a open source and free software and
many strong alignment with big companies like
IBM, Oracle etc
But in comparison with Microsoft Linux has to
do a lot and it should enter into other market
shift so that it can compete with Microsoft and
became a No. 1 Company in the world of IT.