Marketing - Microsoft Case Study - Essay Example

The strongest companies with truly innovative concepts survived and into the 21st century. The turn of the century continued to be trigger by the internet and higher broadband speeds created the birth of what economist called the convergence age. The convergence era is defined by the collapse of previously distinct media distribution channels – broadcast, cable, radio, print, online – into one single media delivery chain that supports a range of interactive modes between users and content (Pricewatercoopers, 2006).

Microsoft is the biggest software manufacturer in the world. The company has a rich 32 old history in which they have help revolutionize the IT industry. The company has changed a lot in last five years and has implemented new business strategies which diversified its portfolio of product offerings. The company revenues in 2006 were $44,282 million, which represents a 56.11% revenue increase in comparison with 2002 (Annual Report Microsoft, 2006). There have been a lot of changes in the IT industry.

A lot of them have to do with world’s entrance into the convergence age. The company is adapting to the trend and is focusing on launching products based on the market tendencies. There are a lot of exciting developments occurring in the IT industry. In 2006 the IT market generated $3.1 trillion in revenues (Info Tech Industry Overview, 2007). The industry is expanding and new products, concepts and ideas are revolutionizing the industry. A lot of the hottest trends in this industry are aligned with the start of the convergence age.

Security is a big issue as more and more users entered the internet and are utilizing it for work related tasks and for their ecommerce needs. The latest tallies of the size of the online population revealed that as of late November 2006 there were 1.76 billion online users globally