Microsoft Corporation is a multinational company that develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its most profitable products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software. As of the third quarter of 2009, Microsoft was ranked as the third largest company in the world, following PetroChina and ExxonMobil.
The company was founded by Bill Gates & Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Windows line of operating systems. Many of its products have achieved near-ubiquity in the desktop computer market. One commentator notes that Microsoft's original mission was "a computer on every desk and in every home, running Microsoft software." (About Microsoft Cooperations, n.d.)
As of 2012, Microsoft is market dominant in both the PC operating system and office suite markets (Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via the Windows Phone OS). In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the launch of the ‘Microsoft Surface’ tablet computer (Microsoft, 2013).
2. DIGITAL ECONOMY AND MANAGEMENT OF IT
The digital economy has been in the Business interest since the 1990s. As a result of digitalization of written work, music, games, and movies information that can be moved almost without cost or less cost from one party to another. This has given rise to new business models and strategies used by firms operating in these markets. When discussing the business of Microsoft, the rise of the Internet has had a dramatic impact on how real markets work: since transaction costs have fallen for physical goods as well, more and more trade now takes place online. Greater innovations in computing capacity and upgrades of telephone and cable networks and wireless transmission have made it possible to transmit larger files faster so that software products and can be distributed via the Internet. In this new economy, many things happen that seem to contradict standard economic wisdom: Platforms for software Microsoft subsidize other software producers that need this platform to offer software running on that platform.
2.1 Business characteristics
Microsoft Corporation, which was founded by Bill Gates and Paul Allen in 1975, has now grown up as a leading developer of Operating system and many software products for computing devices. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies. The main Business features and characteristics of the company include:
GLOBALIZATION: Microsoft undergoes global communication and collaboration in electronic marketplaces to reach global suppliers, customers and partners. It wants their applications to reach a global audience with the best and most economical ways .Microsoft’s global citizenship principles guide the company as it globalizes its operations, enters new markets, and expands its global employment base. These principles are designed with the aim that Microsoft’s grow will beneficial for current and prospective employees and for their new communities and neighbors. Developing a global network of suppliers to improve the performance and lower the cost of its systems.
DIGITAL SYSTEMS: Digital technology continues to changes both in terms of understanding of digital systems and the nature of the cost-effective ways to create them. The development has continued to be towards greater…