Diversification Strategies Case Study

Microsoft: Software to Media

OR

Abstract:
Microsoft, the global leader in software, services and solutions was under threat from the web-based organisations. Though Microsoft was an increasingly profitable organisation but this Internet based companies increased their customer base through advertisement services. So Microsoft planned to become more web based and remake the company by going online. The case gives an insight into Microsoft’s history from its inception with the challenges it faced from the online organisations and also from the open source software companies. Moreover it deals with the initiatives taken by the software genius Ray Ozzie who was hired by Microsoft to make the major makeover.

Pedagogical Objectives:

• To understand the software industry
• To understand the internet based companies
• To analyse the difference between open source and proprietary software
• To discuss the competitive dynamics of web based companies
• To discuss how Microsoft planned to shift from its core business to increase its revenues.

Keywords : Microsoft (MS); Software; Ray Ozzie; Google; Yahoo!; Open source software; Linux; MS Windows; Strategy; Advertising; Media; Diversification Strategies Case Study; On-line advertising; Differentiation strategy; AdCenter; Bill Gates