The External Environment of Microsoft Inc. (Computer Operating System Industry)

The External Environment of Microsoft Inc. (Computer Operating System Industry) Research Paper example
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THE EXTERNAL ENVIRONMENT OF MICROSOFT INC Table of Contents Company Overview 3 Industrial Structure 3 Dominant Economic Traits 4 Porter’s Five Forces Analysis and the Driving Factors 5 Bargaining Power of Buyers 5 Bargaining Power of Sellers 6 Threat of New Entrants 6 Threat of Substitutes 7 Intensity of Rivalry 7 Value-Net Analysis 8 Strategic Group Map 8 Competitor Analysis 9 Key Success Factors 11 Conclusion 11 Works Cited 12 Company Overview Microsoft Corporation is an US based multinational company headquartered at Redmond, Washington and was founded in the year 1975 (“Microsoft Corporation: Business Summary”).


It has been ranked 37th in the Fortune 500 list in 2012 (“Fortune 500”). Industrial Structure As mentioned earlier Microsoft Corp. operates in the software industry globally. This industry mainly consists of the IT industry, the Software industry and the Internet Software and Services industry. If we look at the global software industry it mainly comprises of application software, software for home entertainment and systems software. The global IT Services industry is not that relevant to Microsoft because it comprises of the data processing and outsourcing market. The internet software and services industry mainly comprises of the organizations which develop and market internet software and provide internet services related to interactive services and online databases. There has been a growth of around 7% in the global systems software market in the year 2010. ...
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