Microsoft Organisation - Overview, Challenges, Recommendations - Research Paper Example

Microsoft A Case Study Introduction Computers: whether used in the office or at home, have become synonymous with Microsoft Operating Systems. And why not Over the years, Microsoft has proved its superior leadership in the industry. Through a process of continuous research and innovation and an anticipation of user's needs, Microsoft has enjoyed a near monopolistic market for its operating systems. MS operating systems account for approximately 90-95% of microcomputer computer operating systems. When you are a leader, you also have to be prepared for some rude shocks. The US Justice Department's antitrust case was slammed on Microsoft on May 18, 1998.Microsoft was accused of extending its monopolistic powers in the browser markets.1 In simple words, the company was accused of "basically taking one product where they have power and tying another product to it." Already an acknowledged brand in the operating systems, Microsoft had planned to tie up its browser with the operating system. Unfortunately, an antitrust case was filed by the US Justice Department. The government argued that the customer must have a choice to choose products in a competitive market. It was not right on Microsoft's part to monopolise not only the operating systems market but also plan to do the same for browser by porting their browser to the operating system. One of the charges was Microsoft had a huge share of the operating system for homes PCs and it was not economically viable for users to switch over to other operating systems in the near future. " Microsoft's share of the market for Intel-compatible PC operating systems has stood above ninety percent. For the last couple of years the figure has been at least ninety-five percent, and analysts project that the share will climb even higher over the next few years. Even if Apple's Mac OS were included in the relevant market, Microsoft's share would still stand well above eighty percent.2" Overview of the Organization Microsoft was set up as a company to develop and sell BASIC interpreters for the Altair 8800, a microcomputer design from 1975, based on the Intel 8080 CPU and sold as a mail-order kit through advertisements in hobbyyist magazines. The rise and popularity of home computers is attributed to Altair 8800. This was a turning point for Microsoft. With the growing popularity of home computers, Microsoft had started to dominate the home computer operating system market with MS-DOS in the mid-1980s. Microsoft has been a real wealth creator for its employees and share holders. Statistics show that subscribing to shares of Microsoft has made four billionaires and an estimated 12,000 millionaires from Microsoft employees. Microsoft has footholds in other markets besides operating systems and office suites, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia3. Besides developing operating systems and software, Microsoft is also known for its hardware. Popular products include the Microsoft Mouse, and home entertainment products like Xbox, Xbox 360, Zune and MSN TV. Microsoft is known to encourage its software developers and employees. It has also given customer support over Usenet newsgroups and the internet, besides awarding Microsoft MVP status to volunteers who are deemed helpful in assisting the company's customers. The company's official website is one of the most visited on the Internet, receiving more than 2.4 million unique page views per day according to Alexa.com. An analysis With its innovative hardware, software and futuristic views, Microsoft enjoyed a near monopoly in the world of computers, especially home computers. Though very unlikely to be true, it was charged with an antitrust case in 1998 by the Government of America. The verdict was that Microsoft had a monopoly of PC operating systems, Microsoft harmed consumers through its use of its monopoly powers, and several of Microsoft's contracts had anti-competitive effects. In 2000 a decision was reached that would split Microsoft into two firms, one that would provide operating systems and a second that would provide software applications. Subsequently, Microsoft submitted an appeal to the U.S. Supreme Court. In 2001, the U.S. Justice Department announced that it would no longer argue that Microsoft should be broken up into separate companies. A settlement with the Federal government was reached on November 2, 2001 that required Microsoft to release portions of its source code to competitors to allow other programs to effectively function under Windows. A substantial amount of this source code was released in August 2002. This settlement also allows computer makers to select which Microsoft products would be loaded onto computers that they sell. In my own view, there are a lot many forces that come into play when a person suddenly rises to intense fame and riches. If at all other companies' products had been as superior as Microsoft's, why would they not have been successful in capturing the market share even after the antitrust case was slammed against Microsoft. In my personal analysis, it is not only a delight to work on Microsoft products, it would be a delight to work for the company, which respects not only its customers and constantly offers them new and upgraded versions, but also values its employees and treats them as equals. Changes/Challenges Facing The Organisation The challenges facing the organization are akin to challenges faced by any other huge corporation in today's fast growing world. These could be summarized as below: Fulfilling its social responsibility Each multinational company is now expected to make sure that its products or the processes involved in manufacturing the products do not harm the environment in any way. Recently, it has been found that gaming consoles are loaded with hazardous chemicals. In their new 'Playing Dirty' report, environmental organization Greenpeace found that all three home video game consoles - Sony's PS3, Microsoft's Xbox 360 and Nintendo's Wii - tested positive for a variety of hazardous chemicals, including polyvinyl chloride (PVC), beryllium, bromine, and phthalates4. Coordinating research efforts across the globe Research efforts across the five Microsoft Research labs in Redmond, Wash.; Bangalore, India; Beijing, China; Cambridge, England; and Silicon Valley, Calif. need to coordinated properly. With connectivity being so easy, this need not pose a major problem to the company. Beating the competition Microsoft researchers work in an open research environment similar to that found on university campuses, exchanging ideas and technical insights with colleagues and collaborators to advance the state of the art. With the release of the source code to the competitors since 2001, Microsoft might face a tough competition from other big players in the industry. Sustaining market share Sustaining the market share of almost 90 percent in the operating systems in the coming years might be an uphill task as labour and skilled workers are cheaper in emerging markets like India and China. Options for the company This might not be anything new to a company of Microsoft's' repute, but in my opinion, it would be wise if the company could takes the following steps as and when deemed necessary. Contemplate mergers and acquisitions with local companies. To maintain its global leadership and market share, Microsoft could consider mergers and acquisitions with local companies, as and when required. Move the operations to emerging markets To capitalize on the comparatively cheap labor and land costs, Microsoft could consider moving a few of the operations to emerging markets, like India and China or Latin America. Government subsidies provided in these countries would also be favourable for the company I these countries. - Compare, contrast, and integrate the analyses After putting forth the above views in favor and against Microsoft, it would be wise to conclude that Microsoft is the uncrowned king in the world of computers. Be it software, hardware, operating systems or state of the art yet to be released products, Microsoft will not be beaten. The company has an uncanny vision, an insight into customers' needs and an ability to excel. This itself has made it indispensable to the computer world. Superior research, a talented research pool from across the world, quick and successful transfer of technology from the labs to the field(factory), excellent marketing strategies and a product fro all ages is Microsoft's unique selling point. A global leader to the core!!! Recommendations for the organisation. Be amiable with the competition Though there is no evidence of the fact and it might not even be true, but Microsoft could be aim for more amiable relations with its competitors. Mergers and acquisitions pave the way for higher profits and wider acceptability. Develop products which are environment friendly The chemical contents in Microsoft's Xbox and other game consoles have been found to contain toxic materials. It is also a commonly known fact that computer hardware is highly detrimental to the environment and proper measures have to be taken to dispose of these in the surroundings. So, if the inputs are environment friendly, the consumer will not have to think of the health hazards of disposing the hardware after its useful period. Move operations to emerging markets Though costs might not be a problem for Microsoft, moving operations to emerging markets like China, India and Brazil might help check costs to some extent. The savings made as a result of this step could again be ploughed into research for the company. Integrate research with viable products The true value of research is realized when the efforts of research are seen in the form of new products and applications. No doubt Microsoft has done very well by introducing new products like Vista and newer versions of suites, it could also consider more in the future. Take up a few projects in the developing world to fulfill the company's social obligations. While there are a lot of ongoing community projects undertaken by Microsoft in the US, it would be even more helpful if the company could dedicate a few projects in the developing regions of the world. References 1. Online Focus, Online News Hour, " A Matter of Antitrust," May 18, 1998.May 18 Accessed on 20th May,2008. http://www.pbs.org/newshour/bb/law/jan-june98/microsoft_5-18.html 2. " FindLaw for thePublic" November 5, 1999 Accessed on 20th May,2008. http://news.findlaw.com/microsoft.html 3. http://en.wikipedia.org/wiki/Microsoft, accessed on 20th May,2008. 4. "Killer app: Game consoles contain hazardous chemicals" in Yahoo Games, 20th May,2008. Accessed on 20th May,2008. http://videogames.yahoo.com/feature/killer-app-game-consoles-contain-hazardous-chemicals/1214392 5. http://research.microsoft.com/default.aspx, Accessed on 20th May,2008. Read More