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

17. Microsoft Linux
Critical Weight Rating Weighted Rating Weighted
Success Score Score
Factors
Product Quality 0.15 4 0.60 4 0.60
Price 0.15 3 0.45 3 0.45
Technology and 0.2 4 0.80 3 0.60
Innovation
Management 0.15 4 0.60 3 0.45
Financial 0.1 3 0.45 2 0.30
Customer 0.2 3 0.60 3 0.60
Market Share 0.05 2 0.10 3 0.15
Total 1.00 3.60 3.15

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.