Microsoft Company Analysis - Essay Example

A lot of criticism has been raised about the practices of the management but the company still continues to experience rapid growth. Some of the biggest issues have been Labor Practices, Licensing Agreements, Acquisitions and Court Litigations (Salop & Romaine, 1999). Microsoft violated anti-trust laws and was charged with illegal conduct. Despite the court ruling, economic and legal justifications continue to be a subject of debate amongst the different entities from both sides. Today, companies are reviewed and judged not only on their economic performance, but also how well they are maintaining ethical standards.

The management at Microsoft has been focused on not only adapting to the changing environment but maintaining a high level of ethical conduct while doing so. Studying the Microsoft case is important for two reasons, firstly the outcomes of this case may have severe consequences on the future of this industry. The laws and policies that come out of this case will not only influence how Microsoft works but also other computer hardware/software manufacturers like IBM and Apple. Secondly, as a legal case, it determines the standards of monopolization for all future generations.

Technological Changes The biggest challenge recent technological change has been the increase in the use of mobile devices. In April 2011, Microsoft, once the dominant technology company, saw revenue from its core operating system software slip in the first three months of 2011 as consumers begin to shift to buying tablet computers that do not run on Microsoft software. Microsoft has been severely lagging behind in this industry with Windows Mobile not being used by many of the handheld PDAs or cell phones (Markus & Robey).

With Apple and Google growing rapidly with their own respective systems, Microsoft needed to bounce back which it did with a strategic collaboration with Nokia which means that all new Nokia handsets will be supplied with support for Windows Media Audio and Windows Media DRM 10 (Digital Rights Management). This will enable users of the new mobile music service from Nokia and to play songs on Windows XP. Nokia has moved away from RealPlayer that brings together the leading companies (Nokia and Microsoft) in the market.

This is Microsoft’s door to a large part of the mobile phone market, a region that was not really successful the last two years. Even before this deal was made speculation had started whether Nokia was being purchased by Microsoft simply because of the fact that many did not see Microsoft using a collaborative strategy as it has never done in the past. But this step is extremely positive because the deal made between the two giants ensures constant development in the future, and Microsoft will remain competitive in the mobile OS industry.

One of the latest events that Microsoft has entered into is by acquiring Skype, a kind of software that can be used to make telephone calls using the internet. This actually has been viewed as a mixed strategy by analysts. While many say that it is a good expansion for the company, others argue that it is once again the Microsoft way of adapting to challenges, i.e. they lack the ingenuity to come up with original products/services, and chose to acquire smaller firms without actually thinking about whether they fit with the company’s strategy.

This is however a step by Microsoft to diversify somewhat into the mobility and networking sector, where it