Microsoft History

1
(No Transcript)
2
MicrosoftHistory

• 1975 Bill Gates drops out of Harvard and teams
  up with Paul Allen to start Microsoft
• 1980 Personal Computer
• 1986 IPO
• 1990 Windows OS gets released
• 2005 Xbox Live 360 is released

3
Financials

• Ratios
• Microsoft Price Earning Ratio (P/E) 23.74
• Google P/E 49.73
• IBM P/E 15.77
• Debt ratio of 0
• WACC of 10.15

4
Financials
5
Organizational Structure

• Platforms product and services
• Business Division
• Entertainment and Devices Division

• Centralized hub
• Better communication
• M-Form Management Control

6
Macro Environment

• Cultural Trends
• Online Social Networking
• MySpace.com, TheFacebook.com
• Blogging
• Demographic Trends
• Millenials
• Born between 1979-2004
• Notorious Multi-taskers
• High-usage of electronics

7
5 Forces

• Competitors
• IBM, Sony, Nintendo, Netscape, FireFox
• Entry Barriers
• Economies of Scale, product differentiation,
  switching costs.
• Substitutes
• Cell phones, PDAs

8
Internal Evaluation

• Mission Statement
• At Microsoft, we work to help people and
  businesses throughout the world realize their
  full potential. This is our mission. Everything
  we do reflects this mission and the values that
  make it possible.

9
Resources andCapabilities

• Human Resources
• Bill Gates, Dina Dublon, Raymond Gilmartin
• Physical Resources
• Microsoft owns 8,975,642 square feet of land
  worldwide.
• Financial Resources
• 18,429 billion in retained earnings

10
Core Competencies

• Strengths
• Involved in all user technological interaction
• Weaknesses
• First mover advantage on internet user interface
  technology.

11
Corporate Strategy

• Vertical integration
• Xbox Release
• Strategic Alliances Diversification
• Electronic Arts

• Mergers and Acquisitions
• Sybari software
• Groove Networks
• FrontBridge Technologies
• Teleo Inc.
• Media-steams.com
• FolderShare

12
Recommendations

• Be proactive and anticipate the future
• Diversify into business consulting sector
• Expand on their brand name
• More innovation