Barriers to Entry and Exit (Symbian)

Microsoft has grown into an enormous and powerful corporation by a combination of aggressive business practices and having written operating systems (DOS and Windows) for personal computers. From operating systems it branched out into other software which has, along with the operating system, become something of an industry standard.

Factors that can limit the threat of new entrants are known as barriers to entry. In this case barriers to entry are low because: there is no government intervention to prevent businesses from entering the industry, resources are abundant, and customers’ switching costs are low as well as fixed costs to start this type of business.

One company that appears to have a gap between its mission and its capabilities is Microsoft. The software giant has long had a problem with respect to innovation, and continues to rely on aging franchises for the bulk of its revenue. It was left out of the mobile operating systems boom and has failed to be a leader in either software or consumer electronics as a result (Clarke, 2010).

Software: Microsoft dominated only 12% of the market with its Windows Mobile OS and BlackBerry OS held a meager 11%. It stepped up to refurbish its marketing attempts and provide end-to-end solution for its Windows Mobile enables phones with new user friendly features.

Microsoft, a company founded by Bill Gates has, in the last couple of years seen a number of changes in its mode of operation. Traditionally Microsoft has been in the business of producing computer-based products exclusively (Byrnes, 2010). In the light of changing technology, globalisation and changing consumer tastes and preferences change has become in the tech-giant company. In the fast-paced world of technology, consumers are actively switching to the new touchscreen laptops and tablets, which are the replacement to conventional computers. These contemporary computers require operating systems and software that are entirely different from what was in use formerly. As means of keeping up this trend, and in order to address these new

Microsoft has made billions of dollars production of great products at a great price, but the satisfaction of the past 5 years or threatens to weaken the company’s relevance in the future of computing. Even though Microsoft is still huge and competes strongly, Microsoft has not seen much product development outside of products like SharePoint and recently Windows Phone. If Microsoft doesn’t advance its technology approach soon, Microsoft will soon become a “…cross-reference in the

If we are to fully understand competition within a market, we must identify how business dynamics evolve over time and know the conditions that encourage or deter entry within a market. Entry is defined as the beginning of production and sales in a market (Besanko et al), with new firms incentivised to enter by the potential profits available within an industry. However this threat of entry is limited through the structural and strategic barriers embedded in the market, which limit the profitability of newcomers within an industry.

Relatively uncontested for much of its early years, Microsoft was–and still is–the most popular operating system in existence. Crushing Linux and Apple for decades, Microsoft was essentially a monopoly. Left unrivaled, this led to minor updates in their software, but little to no innovation. Unfortunately, computer users were left with buying each iteration of Windows 95, 98, ME, CE, XP, and so on because there was no true alternative. Microsoft rested on its laurels and continued to turn profits. However, with the arrival of the 21st century, that all changed.

Microsoft has made billions of dollars making great products at a great price, but the complacency of the past 5 years or threatens to undermine the company’s relevance in the future of computing. Although Microsoft is still big and competes vigorously, Microsoft has not seen much product growth outside of products like SharePoint and recently Windows Phone. If Microsoft doesn’t upgrade its technology strategy soon, Microsoft will soon become a “…footnote in

Microsoft the largest software company in the world was created in 1975 by Paul Allen and Bill Gates (A history of Windows, era 0). As the number one software developer in the industry they produce revenue “by developing, licensing, and supporting a wide range of software products, by offering an array of services, including cloud-based services to consumers and businesses, by designing, manufacturing, and selling devices that integrate with our cloud-based services, and by delivering relevant online advertising to a global audience” (Annual Report 2015). In addition to individual products and services being sold, they offer bundles of services and goods. Their products include phones, servers, other intelligent devices, and operating systems for computing devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. They also design and sell hardware including tablets, PCs, gaming consoles, phones, and many other additional devices and accessories. In June 2015 the organizational structure of the company changed in part to their “transformation in the mobile-first, cloud-first world” (Annual Report 2015).

The Microsoft Corporation is a publicly traded company. It was founded in 1975 and prides itself as a leader in software and product solutions for individuals and businesses. Their mission and vision is to be a go-to source for everyone globally, and to be able to consistently produce platforms and products superior to the competition. Their comprehensive line-up makes them a very competitive business in the market, and one that can partner with a multitude of sources. They feature a broad array of products and services including Windows, Office, Windows Phone, box, Skype, MSN, Bing and Surface (Microsoft, 2015). Technology changes have been promoted by the company, and they

But, which are the main reasons Microsoft lost that relevance in the smartphone sector? And why are they still not able to develop a competitive smartphone? This paper presents a relation of causes and effects that lead

A firm’s new entrance to a market will affect the existing firms in the market. It leads to lose of market share, lose control with customers and suppliers so on. There are nine major barriers for a new firm’s entry. They are:

The world of telecommunications is a dog eat dog world. Marketing and innovation is key. Leading the pack as America’s fastest growing network (*) is none other than T-Mobile. Of course it was not always this way. With the on boarding of CEO John Legere in 2012, the then small telecommunications company, skyrocketed to 73 million customers(Feloni, 2016). In 1994 T-Mobile, with the name of VoiceStream Wireless PCS, was established by John Stanton. Seven years later it was purchased by Deutsche Telekom AG for a whopping $39 million and rebranded T-Mobile US the following year. In 2011 T-Mobile was in financial trouble and was looking to be purchased by AT&T. The deal was struck down by the US Department of Justice because it would lessen the competition in the market. In early 2012 John Legere became CEO and the rebranding started. T-Mobile then went on to acquire MetroPCS Communication in October 2012 to broaden their customer base and increase prepaid service revenue. John Legere then introduced contract-free pricing in 2013 which then forced the big guys (Verizon and AT&T) to follow suit. Due to their success, Sprint attempted to acquire the company in 2013 but abandoned the idea due to the fact that it was unlikely to be approved by the government (Maynes, 2017). In 2016 there were talks of T-Mobile purchasing Sprint. In November of 2017, after months of negotiations and

Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.