As with any large firm there are likely a number of legal issues that a company can face. In the original “European Union vs. Microsoft” case was originally stemmed from a complaint by Novell regarding the company’s licensing practices. The ultimate original decision was that Microsoft was ordered by the European Commission of the EU to divulge some information in its server products and for the company to re-release its Windows operating system without a mandatory Windows Media Player application.
Strengths and Weaknesses within Microsoft: For this section of the paper two of the four components of as SWOT Analysis in which the simple strengths and weaknesses of the firm will be covered. From information presented in the case it has become clear that Microsoft has the financial means to sustain the direct financial costs associated with the European Union upholding the original decision of the case. As it is the case that Microsoft still controls a substantial portion of the operating system and office suite market for personal computers at 93% and 97% respectively. If the company was forced to divulge a significant portion of their strategic competencies it can be that the firm has the human capital to create new strategic advantages. Furthermore if the firm produces a new operating system every couple of years it would only be a matter of time before a new method gaining increased market-share can be implemented
Opportunities and Threats: Although this paper will cover both opportunities and threats, as highlighted in chapter 4 of our course textbook a Porter’s (1979) Five Forces model will also be used. In terms of opportunities, in the case study it was not presented that customers were angry with Microsoft rather it is their competitors. As such one could conclude that there is still marketability of their product offerings even if the courts were to rule against them. Whilst it