Search for Excellence - Microsoft

Search for Excellence in Software Industry

Development of single-chip microprocessors revolutionized use of personal computers in mid 1970s, and subsequently, software industry has boosted up. Bill Gates at Microsoft saw how quickly microprocessor would emerge and, and change the face of computer industry. The general perception of the time was that hardware was the main industry and software was merely an adjunct. The major players of the industry would lock their customers into both technologies by running the hardware with their own software. Microsoft started to think differently. As far as Microsoft was concerned the more people that used Microsoft software on their machines the better. Starting with licensing its software to IBM, Microsoft kept the right of licensing to other manufacturers for itself, and this was the key to its enormous success (Perseus Publishing Staff, 2003). Since then Microsoft’s expansion strategy enabled it to improve its competencies by innovation and continually differentiating its products. At present, Microsoft’s market value exceeds the market value of three big automobile makers in U.S. General Motors, Ford and Chrysler. The key to this prosperity is genuine innovations, lifelong learning, ever-improving work conditions, and higher productivity and effectiveness (Lan, 2005). The management of Microsoft, although not absolutely flawless, is analyzed as good practice and educative managerial case. This papers reviews the strategic approaches of Microsoft management in search of excellence, which made the corporation the market leader in software industry.

Microsoft at its life cycle

Microsoft’s rapid expansion and prosperity should be analyzed in three stages: Microsoft at its early stage; Microsoft’s management in maintaining its high growth rate; Microsoft’s approaches in securing the future of corporation.

Microsoft at its early stage: In 1981 Bill Gates decided to license MS-DOS to IBM while...