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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Microsoft's Net Strategy Microsoft thrived on software business and made huge profits with its software products. Its most famous software products were Microsoft Windows operating system and Microsoft Office. However, Microsoft faced criticism that its business model relied on the traditional software and packaging. As a result, during the mid-1990s, the company took steps to go beyond the software services to Internet-based services. In themid-1990s, it began to expand its product line into computer networking and the World Wide Web(www). In 1995, Microsoft came up with Internet Explorer(IE), the proprietary web browser. Internet Explorer was an integrated component of newer versions of Microsoft Windows. It was available as a separate, free-of-charge product for many older versions of the operating system. It was shipped as the default browser in all versions of Microsoft Windows. IE was expected to provide competition to Netscape Navigator, the dominant web browser at that time....

The Business Model Makeover Microsoft announced its Internet initiative 'Live software' in November 2005 as a competitive response to Google and Yahoo!'s web-based services. The new online initiative would be delivering services to businesses directly via the web, in many cases without the need to download the applications to a computer. It was an important step for Microsoft to move beyond the desktop PC to other Internet connected devices. Windows Live (live.com)would enable users to create sophisticated personal web pages with links to favorite news sites, music and e-mail. The new services would enable users to manage a range of digital content. The company developed two categories of these services - Windows Live for consumers and Office Live for small businesses. These were the online counterparts of Windows and Office franchises and would be largely supported by advertising...

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