Business Analysis: Microsoft’s Main Resources and Capabilities

1038 Words Feb 21st, 2018 4 Pages
They are the main source of profitability. The resources are tangible (financial and physical), intangible (technology, reputation and culture) and the human resources.
Microsoft was founded by Bill Gates and Paul Allen in 1975 and the first idea was of having “a computer on every desk and in every home, running Microsoft software.” Nowadays, the company is one of the most beneficial companies in the world and also one the largest information technology company.

a) What are Microsoft’s main resources and capabilities which make it a market leader in computer software development and marketing?

Let’s starts with a reference: according to Robert Grant: “In fats-moving technology-based industries, basing strategy upon capabilities can help firms to outlive the live-cycles of their initial products. Microsoft’s initial success was the result of its MS-DOS operating system for the IBM PC. However, by building outstanding capabilities in developing and launching complex software products and in managing an ecosystem of partner relationships, Microsoft extended its success to other operating systems (e.g., Windows), to application software (e.g., Office), and to internet services (e.g., Xbox Live).”
Tangible - financial and physical:
• Microsoft Cash and Short Term Investments: 88.42B for March 31, 2014
• Revenue -…
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