– Efforts and Strategies for sustaining the lead in market. Bill Gates Harvard University
Computer terminal of Seattle School
Paul University Allen of Washington Language Program: BASIC
Allan consulted Gates to 1974, PC develop a ( A l t a i r ) was language developed by program for Allan’s Interest using Intel’s the computer. in Intel’s 8080 Microprocessor technology. Allen developed Simulator and assembler
With
Language Gave demonstration success in 1st stage,
for LUCK successfully to
Robert they FORESAW
ALTAIR (ALTAIR designer) the coming future
Gates wrote Codes
MICRO SOFT from from Microsoft Microprocessor Software
Software for Micro-processors.
• MS started looking for new OS. • Paul Allen contacted Vison 1980, ‘Seattle Computer Products’ for ‘QDOS’ & • Gates DECIDED to negotiated an agreement develop BASIC IBM contacted for use of OS in whatever • No company w 8086, as using ‘MS’ to develop way MS wants
• Gates Vision al ‘Project chess’
low to lead the marke ed him t. ital IBM to Dig • MS send as they didn’t Research, gy olo had techn rtunity Intel p je c te d the oppo re • DR re 8086 sented chip Bill Gates 1978 , in
Deal allowed Microsoft to
offer OS to IBM & license BASIC, FORTRAN and eventually COLBOL to IBM
Knowledge +
Complimentary IBM assets name
Open Architecture
Launch of IBM PC and
Decision came back to haunt IBM in future Microsoft contract With IBM • Allowed so ft Open developers to ware develop Architecture. numerous applications. 2 Years
Microsoft was IBM decided to IBM PC was MS DOS again assigned use 8088 launched in dominated the for technology Aug 12, 1981 market development
Personnel stress MS DOS & Gates
was faced due to CP/M were convinced technical fighting for many software problems, cultural right to developers to differences become design leader in software for market MS DOS
‘Gates’ knew that applications represents actual value to users,
the broader the number of application better the operating system’s chance of survival m i l l i o n M S o f 1 9 8 0 , 30 By the end ammed PC’s were in D O S p r og r market IBM acquired LOTUS in 19 order to ensu 95 in re the develo of application pment s for its OS/2
OS/2 technology was developed
by IBM in an attempt to recapture leadership in PC industry
OS/2 was IBM Proprietary technology but proved to be late
attempt to compete Apple’s system was graphically displayed and was much easier for non-experts
• Development Gates of GUI announced that • DOS was standard OS • GUI should graphical 1980 • Wasn’t user friendly 1981 neither effect DOS nor 1983 interface would be operational application by the end of designed for it 1984
DOS was text
based and monochrome Announcement of GUI came after a close competitor ,VISI Crop, announced its own windows environment.
Turned out to be strategic
announcement for customers to wait for Microsoft product Technical information release was delayed.
Fortunate Gates
Many other companies were None was trying to establish their successful. systems Stewar manag d e u r i a l ement p r en type st Entre yle Steward type… Entrepreneurial (1984…)
Faced ch industr allenges of y stage o at different Launc f matur Window h of ity s1.05 i n 1985 Instabi lity Divisio n OS and in-charge of a were d pplications Freque evelop nt M ed progra ove of mmers Deploy m respon ent of sibility. Window 95 was even considered as primitive version of Macintosh. Apple was unable to capitalize on its superior GUI technology
Application base was launch of Windows 95 was once again delayed, low for and again LUCKILY no other competitor came Windows 1.03 with better technology
1990, Windows 3. 32 bit technology included in Intel’s 1989, was Pentium microprocessor Application launched for Windows flooded in Despite of critics MS market I million Windows 95 was copies were office share in market launched sold that was 90% year
1990 1995 1996
With Microsoft included software to access Microsoft network, Competition was with online service provider like AOL, CompuServe…
Introduced Windows NT to compete with UNIX
Pushing software companies to develop compatibility between
Windows 95,98 or NT
Because of compatibility problem there was low demand of
Windows NT
Microsoft strategy in 1994 focused around 5 main areas: 1. Consumer Software 2. Advanced Technology 3. On-line Services 4. Network Computing 5. Office Equipments
Internet plateform & tools division
Desktop & Business System
Software strategy
Consumer system
On-line services
Office Business Unit
Long term Research
Strategic Relations 1. Finding smart people 2. Organizing team of overlapping functional specialist 3. Pioneer & Orchestrate evolving mass market 4. Focusing creativity 5. Do everything in parallel 6. Improve with continuous feedback & sharing. 7. Attack the future • Windows 95, 98, 2000 series, and Windows NT are globally known with a market share of about 88% • World's largest software company with global Strengths recognition and strong reputation for innovative products • Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access).
• Dependency on hardware manufacturers to pre-
install Microsoft's PC operating system
Weakness • Little or no significant presence in the wireless market • Falling sales in the operating systems and server software sectors • Cheaper global telecommunication costs open new markets as people connect to the Internet • The demand for personal computers in Opportunities American and global markets remains strong despite the growth and increasing popularity of personal handheld devices.
• Apple and Linux threaten Microsoft's 88%
market share of the desktop operating market • Rapid development of mobile devices that will displace/replace personal computers Threats • Recession or economic slowdown in the U.S. or global market impacts personal computer equipment sales and their need for an operating systems • Technology life cycle is shorter and shorter
In MOT, Timing is critical.
In 1970’s IBM was huge in technology market & only focused on main frame computers not PC’S.
Microsoft saw the future prospects & targeted PC market.
Microsoft grabbed opportunity in its deal with IBM.
IBM followed open architecture for launching PC in late 1980’s & eventually lost its dominant market share.
Microsoft kept the right to license its OS & started selling it to various organization providing IBM clones.
Even huge companies like IBM can benefit from alliances with small companies
Its important to exploit the technology.
Incremental innovation is also important to be managed.
Entrepreneurial personality, vision, ability to forecast the future of technology and other mgt. skills are important for success of the firm.
Develop technology keeping future prospects in mind.
Calculated risk taken.
Major factors were technical and business ability.
Luck was a significant factor.
