Microsoft's Net Strategy: The Business Model Makeover



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Code :BSM0034

Year :
2006

Industry : Information Technology and IT Enabled Services

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Microsoft, the number one software company in the world, started expanding into Internet-based services from the mid-nineties onwards. The company launched a number of Internet-based services to take on its competitors. However, increasing competition from Internet-based service providers like Google and Yahoo! has driven Microsoft to come out with a new strategy for its Internet-based services as well as a new business model. But the question remained whether Microsoft would be able to dominate the Internet-based services as it has been doing for licensed software since its inception.

In 1975, Bill Gates and Paul Allen founded Microsoft. With the beginning of the modern PC era in the 1980s, IBM selected Microsoft to write operating systemfor its new machines. To achieve this, Gates purchased QDOS from a Seattle based programmer and renamed it as MS-DOS, the new operating system for IBM machines. In the mid-1980s, Microsoft introduced Windows, a graphic-based version of MS-DOS that was borrowed from competitor Apple's Macintosh system. In 1986, Microsoft went public by listing its shares in NASDAQ . In 1993, the company introduced Windows NT to compete with UNIX operating system that was popular for mainframes and large networks. Microsoft is the number one software company in the world that provides variety of products and services including its Windows operating systems and Office software suite...

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