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From an economic perspective, why is Microsoft so successful - Term Paper Example

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This is a short summary of what the company does, but it does not tell anywhere close to the complete story. It does not tell you that the…
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Download file to see previous pages ough, people might find themselves cursing the “evil empire” when they use a lot of cash on another upgrade or when their system crashes, the company is unrivaled or unmatched when it comes to powering information technology. Whether through innovation, cunning or a blend of these and other considerable qualities, the company and its owner have defined how the world uses computers ever since PCs, IBMs in particular, started being rolled out, in 1981, with their Microsoft Disc Operating System (MS-DOS), in its bowels (Wallace & Erickson, 2010). Therefore, the company rules the globe, but just what makes it reach that level? This article will discuss, from an economic perspective, why Microsoft is so successful. In order to achieve this, it is significant to look into their history and discover how they compete in the marketplace. It is also important to look at how the company’s corporate culture influences its success and finally look at some of their world famous products to discover how they rip from these core advantages.
Microsoft was founded on 1975 by Bill Gates and his colleague, Paul Allen, as a simple “garage start-up” (Inamizu, 2014). The two were basically part of an initial leap towards personal computing with a major different. Whereas competitors such as Apple, inc. began straight away developing both machines and software, Microsoft only dealt with software. The key difference among these two, economists argue is that Steve Jobs and his acquaintance, Steve Wozniak, were running a hobby endeavor, unlike Gates and Allen who were running a business world. IBM was developing their initial PC and wanted an OS to run it. They approached Gates and Allen thinking that they had one available, but at that time, they were only writers of computer language not developers of OS. Microsoft decided to buy a $50,000 OS that they leased to IBM for $80,000, but still, during this era, $80,000 was not that much of a fortune (Inamizu, 2014). Gates discerned ...Download file to see next pagesRead More
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