Leadership the Bill Gates Way


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Case Details:

Case Code : LDEN014
Case Length : 14 Pages
Period : 1968-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Microsoft
Industry : Software
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

The Marketing Thrust

Many analysts felt that one of the most important contributions of Gates to the company was the development of innovative and aggressive marketing strategies. Gates spent most of his time meeting a large number of the company's customers. A master at making deals, he entered into several successful deals with them since the establishment of Microsoft.

A shrewd judge of the potential of software products, he purchased DOS for only a few thousand dollars and converted it into one of Microsoft's best-selling products. Gates successfully predicted future trends and positioned Microsoft's products in such a way that they soon became best selling products...

Gates - The Leader

Gates transformed Microsoft from a $1 million company in 1978 to a market leader in the software industry with revenues of $28.37 billion in 2002 (Refer Exhibit V). Even though Microsoft was the market leader, Gates felt that the company should not become complacent and that it should constantly reinvent itself...

The Criticism

Although many analysts appreciated Gates for his visionary leadership and invaluable contributions to the software industry, he was also criticized for several reasons. The critics argued that Microsoft was not an innovative company. They said that Gates reformed existing products to satisfy customer needs instead of inventing new ones. Analysts also argued that Microsoft's overwhelming market share was a major impediment to innovation in the software industry. Microsoft was not just the market leader, but also the standards provider for the industry...

Exhibits

Exhibit I: Microsoft's R&D Costs (1996-2001)
Exhibit II: Microsoft's Products & Services (Partial List)
Exhibit III: Gates' Human Resource Mantras
Exhibit IV: Microsoft's Global Employee Strength (1993-2002)
Exhibit V: Microsoft's Net Revenues & Net Income (1993-2002)
Exhibit VI: Bill Gates - A Visionary Leader
Exhibit VII: Bill Gates' Contributions in Various Fields
Exhibit VIII: Jackson's Findings in Microsoft's Anti-Trust Case

 

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