Business Strategy For Internationalisation / Globalisation

3241 Words Aug 25th, 2014 13 Pages
Founded in 1975, Microsoft is a “global competitor”, that is, a global corporation following a unified strategy to coordinate many national operations (Porter, 2011); is the oldest major producer of software for personal computers (PCs) and the world 's largest software company with a strong, leading market share for its core products that make up over 80% of its revenue (Moody 's, 2013).
Microsoft entered the market at the beginning of the new global economy with an initial strategic intent (Macmillan & Tampoe, 2000) to capitalise on software back in an era when PCs were too expensive for the retail market, and before PC standards existed. Microsoft launched its Initial Public Offering (IPO) in March, 1986 of 3.095 million shares opening at $21usd and closing at $27.75USD (Uttal, 1986; Microsoft, 2014a; Monkman, 1986), raising $61m USD in capital.
1.1 Approach
Identify and explain your chosen organisation 's approach to internationalisation/globalisation
At first, Microsoft grew organically by investing in several international sales offices in the early eighties, with strategically purchased Intellectual Property (IP) that positioned itself for early market domination (Campbell-Kelly, 2001). After its IPO, Microsoft began expanding aggressively and acquiring more businesses internationally over the next fifteen years. Whilst headquartered in Redmond, Washington, Microsoft international subsidiaries now vary from being just a sales office to having complete research…
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