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MICROSOFT’S SEARCH |

STRATEGIC MANAGEMENT

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ASSIGNMENT # 04 |

Submitted by:

1. Sheheryaar Mahmood

2. Amna Aslam

3. Madeeha Tahir

Class: MBA-IV (F)

Submitted to: Sir Suhaib Baluch

Date: 12.03.2012

MICROSOFT’S SEARCH

SUMMARY

* In September 2008 the executives at Microsoft looked at alternatives to improve the company’s position.

* The company got serious about search five years back, made great progress, but still lacks behind Google. The division leader is looking for a new ‘game changer’ move which helps then catch and pass Google.

Microsoft in 2008:

* Since its origin, Microsoft has grown to sell a complex line of software, services, and hardware.

* The historical heart of the company was its line of operating systems for PCs, which was introduced in 1980. IBM had come to Bill Gates looking for someone to build a PC operating system. Gates purchased an OS and modified it to meet IBM’s needs, and named it MS-DOS. Rights to use this system were sold to IBM.

* During the 1980’s this system dominated a rapidly growing market for PCs.

* By 1990, clone makers (Compaq, Dell, etc.) were licensing MS-DOS for $15 per PC. Microsoft’s OS ran 90% of the worlds PCs, while Apple had a 7% share.

* Apple launched Macintosh in 1984, and Microsoft introduced Windows 1.0. In 1990 Windows 3.0 was introduced, then Windows 95, 98, XP and finally Vista in 2007.

* Development costs rose from $500 million for Windows 95 to $10 billon for Windows Vista. By mid 2000’s, Microsoft sold 95% of all OS, while Apple had a share of 3%.

Application Software:

* 1980’s: Microsoft entered the business of making application software.

* 1983-84: They released word processor and Excel spreadsheet. WordPerfect and Lotus were still dominant, but word and excel soon became successful.

* 1990: They bundled Word, Excel, and PowerPoint into ‘Microsoft Office”.

* 1995: They were the leading provider of such software’s, and...