Nice Essay

Microsoft’s ambitions are anything but small. The world’s #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, interactive television, and Internet access. With its core markets maturing, Microsoft is targeting services for growth, looking to transform its software applications into Web-based services for enterprises and consumers. Microsoft has reached a settlement to end an ongoing antitrust investigation, agreeing to uniformly license its operating systems and allow manufacturers to include competing software with Windows. Microsoft is dealing with sales that fell short of previous years growth margin. They are also facing all the legal issues claiming they broke various antitrust laws.Microsoft has accomplished a strong hold on the software industry and is by far the leader. There are other competitors but none have such a strong grasp of the market. Of the vast majority of the world’s personal computers, 80 to more than 90 percent run on Microsoft software from the instant they are turned on. Microsoft is now working toward wallet computers that carry digital signatures, money and theater or airplane tickets; toward new generations of fax machines, telephones with screens, and car navigation systems; toward Microsoft-run interactive television boxes, office networks and wireless networks, and, most potently, toward an aggressive Microsoft role in the Internet itself. Microsoft already has a strong hold on the internet with MSN, Internet Explorer and there latest the Passport which will help them market other ventures by tieing the consumer’s info into all aspects of sales.

By making connections among all these levels of modern computing, and by gaining control over the architectures that govern those connections, Microsoft is in the process of transforming the very structure of the world’s computer businesses into a Microsoft world. Microsoft has always tried to be the leading innovators of the industry. They have shelled out billions of dollars annually for R&D, way much more than any of the other top software/internet corporations combined. This aggressive style of business allows Microsoft to stay ahead of the competition and guarantee them a top spot in the computer world. Microsoft has never been intimidated in getting into other markets which they might not have had any expertise in. For Example, developing and launching a video game console (XBOX) when competitors such as Sony (PS2) and Nintendo (Gamecube) are the obvious experienced leaders in the industry. Some of their ventures may turn out to be stinkers but 1 out of 20 sounds like a pretty decent payoff.

Outside Forces:

The legal issues for Microsoft will always be there as long as they continue to be the leader but as long as the same courts that they are being tried in are running Microsoft Windows, Office or any Microsoft product they will be OK even though it will cost them millions in legal services I can’t think of any other company that can afford it.

The competition even though very successful in their business ventures can not come close to dominating the computer industry the way Bill Gates has handled Microsoft. There really is no commercial opposition worth talking about. Microsoft really doesn’t have any outside forces affecting there hold of the market, profit and growth margins. The only thing that can slow them down are laws which have not been to successful so far.

Outcomes:

Concerns:

* Other alternative OS (Linux, Unix, BeOS etc.)

* Laws restricting their movement in the industry

* Law Suits & Anti-trust actions

* Competition other than PC software (Sony, etc.)

Alternatives:

* Millions of new PC’s sold per year with Windows OS

* New ventures forming alliances with other industry innovator giants (XBOX: ATI, IBM, Samsung, etc.)

* Game console 3X stronger than competition

* Billions to spend on R&D, Marketing, Acquisitions & Legal Fees

Strategies:

Microsoft Corporation should just do everything they have been doing. As long as they continue to dominate and invest they will always be on top until the laws are changed to restrict how large of a monopoly a corporation can become before they are breaking the law. What is the likelihood that would happen? That is just not American. Also when a major percentage of the WORLD is running thanks to your technology who wants to stop you. They would only slow there growth.

Fiscal Year-End June

2004 Sales (mil.) $36,835.0

1-Year Sales Growth 14.4%

2004 Net Income (mil.) $8,168.0

1-Year Net Income Growth (18.3%)

2004 Employees 57,000

Last Close 9-Dec-2004 $27.23

04 03 02 01

Annual Sales ($ mil.) 36,835.0 32,187.0 28,365.0 25,296.0

Annual Net Income ($ mil.) 8,168.0 9,993.0 7,829.0 7,346.0

Microsoft Corporation: