Microsoft Strategy Analysis Essay

4644 Words19 Pages
1 Executive Summary
After the successful acquisition of Yahoo!, Microsoft has increased its share on the internet search market and become market leader in web-service subscribers. However, it is still far behind Google in the searching advertising market.

Although Google is by far the leading power in search advertising today, internet search technology is still in its infancy and there are much room for improvement. Microsoft shall invest on the R & D research of search technology and the integration of search with its current products. Meanwhile, it shall also invest in the fast growing display advertising market.

Advancement in technology has enable internet to become a platform in its own right. This brings about the rise of
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A very interesting point to be made here is: in each of this battle, Microsoft wasn’t the technological leader in respective sector and wasn’t providing the best solution. In the “Browser War”, it successfully attacked Netscape’s business model by bundling Internet Explore on Windows for free. In other two cases, it managed to provide products that were “good enough” and were easier to be used as default tools on its dominating Windows operating system[7][8].

Microsoft has also established signification presence in sectors such as web based services, server software, enterprise database management system, software development tools and game console. Since 2003, Microsoft has been trying to establish itself as a major player in internet search engine. However, its effort so far has not been successful. Google has been the run away leader in internet searching since the early years of 21st century, leading Microsoft’s Live Search and Yahoo! by large margins. In 2008, Microsoft acquired Yahoo! in a bid to close the gap on this particular sector.

Microsoft’s tactics in establishing dominance in the IT industry is often a matter of concern for governments. Both the U.S. and E.U. governments have high profile and long running anti-trust suits against Microsoft. In both cases Microsoft was accused of abusing its monopoly power in its handling of
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