Microsoft-Case Study

Entrepreneurial days
Steward type management :

– Efforts and Strategies for sustaining the lead
in market.
Bill
Gates Harvard
University
Computer terminal
of
Seattle School
Paul University
Allen of
Washington
Language
Program:
BASIC
Allan
consulted
Gates to
1974, PC develop a
( A l t a i r ) was language
developed by program for
Allan’s Interest using Intel’s the computer.
in Intel’s 8080
Microprocessor technology.
Allen developed
Simulator and
assembler
With
Language Gave
demonstration
success in
1st stage,
for LUCK successfully to

Robert
they
FORESAW
ALTAIR (ALTAIR
designer)
the coming
future
Gates wrote Codes

MICRO SOFT
from from Microsoft
Microprocessor Software
Software for Micro-processors.

• MS started looking for new
OS.
• Paul Allen contacted
Vison 1980,
‘Seattle Computer
Products’ for ‘QDOS’ &
• Gates DECIDED
to negotiated an agreement
develop BASIC IBM contacted for use of OS in whatever
• No company w
8086,
as using ‘MS’ to develop way MS wants
• Gates Vision al ‘Project chess’

low
to lead the marke ed him
t.
ital
IBM to Dig
• MS send as they didn’t
Research, gy
olo
had techn rtunity
Intel p je c te d the oppo
re • DR re
8086 sented
chip
Bill Gates 1978 , in
Deal allowed Microsoft to

offer OS to IBM & license
BASIC, FORTRAN and
eventually COLBOL to
IBM
Knowledge
+
Complimentary
IBM assets
name
Open
Architecture
Launch of
IBM PC
and
Decision
came back
to haunt
IBM in
future
Microsoft
contract
With
IBM
• Allowed so
ft
Open developers to ware
develop
Architecture. numerous
applications.
2 Years
Microsoft was
IBM decided to IBM PC was MS DOS
again assigned
use 8088 launched in dominated the
for
technology Aug 12, 1981 market
development
Personnel stress MS DOS & Gates

was faced due to CP/M were convinced
technical fighting for many software
problems, cultural right to developers to
differences become design
leader in software for
market MS DOS
‘Gates’ knew that applications represents actual value to users,

the broader the number of application better the
operating system’s chance of survival
m i l l i o n M S
o f 1 9 8 0 , 30
By the end ammed PC’s were in
D O S p r og r
market
IBM acquired
LOTUS in 19
order to ensu 95 in
re the develo
of application pment
s for its OS/2
OS/2 technology was developed

by IBM in an attempt to recapture
leadership in PC industry
OS/2 was IBM Proprietary technology but proved to be late

attempt to compete
Apple’s system was graphically
displayed and was much easier for
non-experts
• Development Gates
of GUI announced that
• DOS was
standard OS • GUI should graphical
1980 • Wasn’t user
friendly
1981 neither effect
DOS nor
1983 interface would
be operational
application by the end of
designed for it 1984
DOS was text

based and
monochrome
Announcement of GUI came
after a close competitor ,VISI
Crop, announced its own
windows environment.
Turned out to be strategic

announcement for
customers to wait for
Microsoft product
Technical
information
release was
delayed.
Fortunate
Gates
Many other
companies were None was
trying to
establish their successful.
systems
Stewar
manag d
e u r i a l ement
p r en type st
Entre yle
Steward type…
Entrepreneurial
(1984…)
Faced
ch
industr allenges of
y
stage o at different Launc
f matur Window h of
ity
s1.05 i
n
1985
Instabi
lity Divisio
n
OS and in-charge of
a
were d pplications
Freque evelop
nt M ed
progra ove of
mmers
Deploy
m
respon ent of
sibility.
Window 95 was even considered as primitive version of Macintosh.
Apple was unable to capitalize on its superior GUI technology
Application
base was launch of Windows 95 was once again delayed,
low for and again LUCKILY no other competitor came
Windows
1.03 with better technology
1990,
Windows 3. 32 bit technology included in Intel’s
1989, was Pentium microprocessor
Application launched
for Windows
flooded in Despite of critics MS
market I million Windows 95 was
copies were office share in market
launched
sold that was 90%
year
1990 1995 1996

With Microsoft included software to access Microsoft network,
Competition was with online service provider like AOL,
CompuServe…
Introduced Windows NT to compete with UNIX
Pushing software companies to develop compatibility between

Windows 95,98 or NT
Because of compatibility problem there was low demand of

Windows NT
Microsoft strategy in 1994 focused around
5 main areas:
1. Consumer Software
2. Advanced Technology
3. On-line Services
4. Network Computing
5. Office Equipments
Internet plateform & tools division
Desktop & Business System
Software strategy
Consumer system
On-line services
Office Business Unit
Long term Research
Strategic Relations
1. Finding smart people
2. Organizing team of overlapping functional
specialist
3. Pioneer & Orchestrate evolving mass
market
4. Focusing creativity
5. Do everything in parallel
6. Improve with continuous feedback &
sharing.
7. Attack the future
• Windows 95, 98, 2000 series, and Windows NT
are globally known with a market share of about
88%
• World's largest software company with global
Strengths recognition and strong reputation for innovative
products
• Software products have high name recognition,
broad-based corporate and consumer acceptance
(Word, Excel, PowerPoint, Access).
• Dependency on hardware manufacturers to pre-

install Microsoft's PC operating system
Weakness
• Little or no significant presence in the wireless
market
• Falling sales in the operating systems and server
software sectors
• Cheaper global telecommunication
costs open new markets as people
connect to the Internet
• The demand for personal computers in
Opportunities American and global markets remains
strong despite the growth and
increasing popularity of personal
handheld devices.
• Apple and Linux threaten Microsoft's 88%

market share of the desktop operating
market
• Rapid development of mobile devices that
will displace/replace personal computers
Threats • Recession or economic slowdown in the
U.S. or global market impacts personal
computer equipment sales and their need
for an operating systems
• Technology life cycle is shorter and shorter
In MOT, Timing is critical.
In 1970’s IBM was huge in technology
market & only focused on main frame
computers not PC’S.
Microsoft saw the future prospects &
targeted PC market.
Microsoft grabbed opportunity in its deal
with IBM.
IBM followed open architecture for
launching PC in late 1980’s & eventually
lost its dominant market share.
Microsoft kept the right to license its OS &
started selling it to various organization
providing IBM clones.
Even huge companies like IBM can benefit
from alliances with small companies
Its important to exploit the technology.
Incremental innovation is also important to
be managed.
Entrepreneurial personality, vision, ability
to forecast the future of technology and
other mgt. skills are important for success
of the firm.
Develop technology keeping future
prospects in mind.
Calculated risk taken.
Major factors were technical and business
ability.
Luck was a significant factor.

Microsoft-Case Study

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Entrepreneurial days

Steward type management :

for LUCK successfully to

Gates wrote Codes

Software for Micro-processors.

• Gates Vision al ‘Project chess’

Deal allowed Microsoft to

Personnel stress MS DOS & Gates

‘Gates’ knew that applications represents actual value to users,

OS/2 technology was developed

OS/2 was IBM Proprietary technology but proved to be late

DOS was text

Turned out to be strategic

1990 1995 1996

Introduced Windows NT to compete with UNIX

Pushing software companies to develop compatibility between

Because of compatibility problem there was low demand of

• Dependency on hardware manufacturers to pre-

• Apple and Linux threaten Microsoft's 88%

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