Executive Summary
Microsoft is the leading producer of software applications for personal computers and is largely responsible for making the personal computer present in every home or office.
Microsoft revolutionized the computer industry mainly through its operating systems, which started with MS-DOS in 1980. However, with the difficulty of its use, Microsoft came out with an operating system that had an interface, which was more user-friendly. This was Microsoft Windows, which underwent many versions throughout the last two decades.
Microsoft became the PC software company with the highest sales by 1988.
Windows became the most widely used operating system in the early ‘90s, with the release of Windows 3.0 and 3.1, which sold 10 million copies in the first two years.
Windows Workgroups 3.11 was the first software product that would enable PC users to become part of the client/server infrastructure.
Microsoft set a record with the release of Microsoft Windows 95, which sold 7 million copies in the first 5 weeks.
Microsoft set another record in 2010 with Windows 7 being named the fastest selling operating system in history, then selling at a rate of 7 copies each second.
The following in turn are some of the factors that contributed to the success and popularity of Microsoft:
Its ability to continuously innovate.
Its ability to provide the needs of its market.
Its sensitivity and responsiveness to the changes in the environment.
Its extensive quality control efforts.
Its ability to diversify, particularly in the video game and search engine industry
Its great business strategy.
It can then be said that Microsoft’s success can be attributed to a combination of great products, a forward-thinking attitude, and a brilliant business strategy.
How Microsoft Became Popular and Revolutionized the Computer Industry
Microsoft is one of the most famous and biggest companies in the world (Richardson 4). It has brought the PC or personal computer to millions of people around the world, and every year, the company tries to develop and introduce new products and applications for the personal computer that are easier to use and are more affordable. It has become the top producer of applications for personal computers (Conway v).
The PC has become an important tool for the management of information, whether for authors writing books using the computer, accountants who work with numbers, or students who do their homework and play games. Indeed, Microsoft has made such a great impact on people’s lives and has truly made a mark in the computer industry.
Microsoft Revolutionizes the Computer Industry with Microsoft Windows
The success of Microsoft is highly attributed to one of its founders Bill Gates. He took an inclination to software from an early age and started programming with computers at 13 years of age. In 1973, he became a Harvard University student where he met Steve Ballmer who is currently the CEO of Microsoft. While studying at Harvard, he “wrote a version of the programming language BASIC for the MITS Altair microcomputer” (Bellis) and in 1975, he left Harvard before he could graduate in order to establish Microsoft with Paul Allen where they planned to develop software applications for the growing personal computer market.
Gates and Allen started with the purchase of rights for the conversion of an existing software package (“Gates, Bill” 1) and in 1980, they agreed to develop the operating system that IBM created. This was the MS-DOS (Disk Operating System), which ran and managed the computer hardware and which served as a link between the hardware and the programs such as the word processors (Microsoft).
MS-DOS, however, proved to be difficult for most people to use, so Microsoft started developing a new operating system, which would be called Windows 1.0. It came out in 1985 and featured a user interface that had windows and screens where, instead of typing commands, a user would simply move a mouse then point and click.
Windows 3.0 and 3.1 came out in 1990 and 1992, respectively, which together sold ten million copies in the first two years, making Windows 3.0 the most widely used operating system at the time (Microsoft). With improved icons, advanced graphics having sixteen colors, and a significantly improved performance, Windows 3.0 would become even more popular with the emergence of the 386 PCs. Windows’ “support for the Intel 386 processor” (Microsoft) enabled programs to run considerably faster. The Print, File, and Program Managers would also then be available.
Windows 3.0’s popularity would grow even more with the release of the SDK or Software Development Kit, which allowed software developers to “focus more on writing programs and less on writing device drivers” (Microsoft). In addition, this version would include more games. As well, the release of Windows for Workgrups 3.11 added support for domain networking and peer-to-peer workgroup which for the first time, enabled PCs to become an essential part of the new client/server computing architecture.
Yet another milestone in the history and success of Microsoft Windows was the release of Windows NT, which was a 32-bit operating system. It supported high-end scientific and engineering programs and became a strategic business platform.
In 1995, Microsoft released Windows 95, which sold a record of seven million copies within the first 5 weeks (Microsoft). By this time, the technology industry was dominated by educational software, multimedia games, the Internet, e-mail, and fax/modems. In response, Microsoft equipped Windows 95 with dial-up networking, built-in support for the Internet, and also included Plug and Play features, which made software and hardware installation easy. In addition, Windows 95 included features for integrated networking and mobile computing, as well as improved multimedia capabilities. Windows 95 would also mark the first time that the following new user interface elements would appear: the maximize, close, and minimize buttons on every window, the taskbar, and the Start menu. Also, with the growing popularity of the Internet, Bill Gates acknowledged that the Internet “was the most important development since the advent of the PC” (Microsoft), and in response, Microsoft released the initial version of Internet Explorer in 1995.
In 1998, Windows 98 was released, a version that was aimed at consumers. With the growing prominence of PCs in the homes, offices, and Internet shops, this version allowed users to work better and play better. With this version, users were able to more easily find information on the PC and on the Internet. It also had the capability of reading USB (Universal Serial Bus) devices and DVD discs and quickly opening and closing programs. For the first time, Windows also included a Quick Launch bar.
Windows 98 was followed by Window Me, which was designed for computer use in the home and offered improved reliability, home networking improvements, as well as video and music features. It included features such as System Restore, Windows Movie Maker, and Windows Media Player 7.
Microsoft next came out with Windows 2000 Professional, which was intended to be a replacement for Windows NT Workstation 4.0, Windows 98, and Windows 95. This version introduced improvements in mobile computing support, Internet compatibility, ease of use, and reliability. It also included support for a wider range of hardware such as infrared devices, IEEE 1394 devices, USB devices, and wireless and advanced networking products.
2001 marked the release of Windows XP, which had a redesigned look and feel that focused on usability and a single Support and Help services center. By this time, around 1 billion personal computers have been sold worldwide (Microsoft).
Microsoft Windows XP would prove to be one of Microsoft’s best-selling products, due mostly to its speed and stability. The user interface was also very intuitive. The Windows XP Home Edition offered a simple and clean design that made it easy for users to access features that they frequently used. Windows XP Professional, on the other hand, provided enhanced performance, security, and reliability. It included features for advanced home and business computing such as advanced networking features, an encrypting file system, and remote desktop, as well as Remote Assistance, Windows Messenger, and wireless networking support. Windows XP 64-bit Edition was also the first operating system that Microsoft designed for 64-bit processors that were used for working on large projects that required vast amounts of memory such as scientific and engineering programs, 3D animations, and movie special effects.
In 2006, Microsoft came out with Windows Vista, the system that had the strongest security to date. Its User Account Control feature enabled the prevention of malicious software from making alterations to the computer. In Windows Vista Ultimate, a feature called BitLocker Drive Encryption also provided better protection for data. It also included features that allowed users to edit videos, send and view pictures, and watch television. It had a new look and just like Windows XP, which was available in 25 languages, Windows Vista was available in 35 languages. In addition, Windows Vista supported 1.5 million devices.
In response, Microsoft came out with Windows 7, which included new user interactions such as the Shake, Peek, and Snap. Windows Touch also came out for the first time, which enabled the user to open files and folders, flip through pictures, and browse the Web using their fingers. It also allowed the user to stream photos, videos, and music from the PC to a TV or stereo.
In 2010, Microsoft set another record with Windows 7 becoming “the fastest-selling operating system in history” (Microsoft). During that time, seven copies were being sold per second.
Factors that Contributed to Microsoft’s Success
The following points discuss the reasons behind Microsoft’s success:
It is apparent throughout Microsoft’s history that a large part of their success was their ability to innovate. With every release of a new Windows version, there was always something new or enhanced that users could look forward to. They were also sensitive to the times and made sure that they responded to the current trends, as well as to the current needs of their market.
They ensured the quality of their products. For example, “the nightly stress test performed on Windows 2000 during development” equaled a run time of 3 months on up to 1,500 computers (Microsoft). Similarly, eight million beta testers performed an evaluation of Windows 7.
Although accused of monopolizing the operating system industry, Microsoft is really not a monopolist because unlike a monopolist, Microsoft expanded rather than restricted output (McKenzie and Shughart 194). It has also reduced the price of MS Windows rather than increasing it, all the while continuing to enhance its usefulness and power. Moreover, Microsoft proposed to increase its long-run profits through the addition of value to Window with its Web browser’s integration into the operating system. Microsoft is just really one tough competitor, and the value they always provide to their market gives it its competitive edge.
Microsoft’s business and success is not confined to the computer industry alone. It has also ventured into the video game industry in its efforts to continue providing the public with recreational and business products (“Microsoft’s History”). It also dominates the market for office suites. Its Microsoft Office applications allow users to complete various projects and tasks. It also released Xbox, a video game console that enabled players to compete with other players online and that also enabled them to download and watch movies and games. Further, it came out with a search engine called Bing. Later, Yahoo! and Bing would have an agreement that Yahoo! Search would be powered by Bing (“Microsoft’s History”).
Microsoft’s success can also be attributed to a great business strategy for not only is Gates a computer genius, he’s also a good businessman. For example, Xerox made the first personal computer. It made the first laser printer, the first high-speed computer network, and the first graphical user-interface but all of these are attributed to Microsoft and other companies, all because Xerox did not commercialize them for the reason that it did not fit its strategy closely enough (Byrnes). Also, DOS wasn’t an original creation of Microsoft but was a product of a small company that Microsoft bought and rewrote. Moreover, as part of Microsoft’s deal with IBM, IBM agreed that DOS would be included in each IBM PC while Microsoft remained “free to sell DOS to every other PC maker as well” (Byrnes).
As Byrnes remarked, someone always had a better product “but Microsoft always had a better strategy” (Byrnes) where Gates always positioned Microsoft at the center of the entire personal computing industry.
It was Microsoft’s mission to put a computer on every desk in every home where Microsoft software runs and so far, they have stayed true to this mission.
Conclusion
Microsoft has indeed successfully brought the desktop PC to every home just as their mission statement indicated. People have now come to rely on Microsoft Windows and other Microsoft applications for the accomplishment of their daily tasks.
Starting with MS DOS and through the many versions that Microsoft Windows underwent, Microsoft has always provided users with something new and made sure that it provided their users' needs. This has contributed a lot to their longevity and success, along with its ability to innovate and to respond to the changes that are ever present in the world of technology.
Along with the development of new versions of Windows and new software applications, Microsoft has also ventured into the video game and search engine industry, which further widens the scope of their reach and their influence.
All these and Microsoft’s tactical business strategy are the reasons that Microsoft is where it is today.
Recommendations
This paper explored how Microsoft became a prominent figure in the computer industry through its innovative and user-oriented products, as well as through its close relationship with its market. As well, this paper has looked into some of the business strategies employed by Microsoft to become the computer giant it is now.
However, these are surely not the only factors that contribute to Microsoft’s overall success as the operations of an organization involve more than its products and business strategies. As such, it is recommended that for future research, the following aspects also be explored to determine how they have contributed to Microsoft’s overall success:
Employee relations and employee development
Partnerships with other organizations
International operations and global presence
For future research, it would be beneficial to explore how Microsoft’s relationship with
its employees, stakeholders, and partners have made it a great organization that continues to thrive.
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