Post on 31-Oct-2014
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PRESENTATION ON
MICROSOFTVs
LINUX
- ROHIT DHUNGANA
MICROSOFT CORPORATION
Microsoft Corporation
Type Public
Traded as
NASDAQ: MSFT SEHK: 4338 Dow Jones Industrial Average component NASDAQ-100 component S&P 500 component
IndustryComputer softwareOnline servicesVideo games
FoundedAlbuquerque, New Mexico, United States (April 4, 1975 (1975-04-04))
Founder(s) Bill Gates, Paul Allen
Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.
Area served Worldwide
Founder(s) Bill Gates, Paul Allen
Headquarters Microsoft Redmond Campus, Redmond, Washington, U.S.
Area served Worldwide
Key people Steve Ballmer (CEO) Bill Gates (Chairman)
Revenue US$ 73.72 billion (2012)[1]
Total assets US$ 121.2 billion (2012)[1]
Total equity US$ 66.36 billion (2012)[1]
Subsidiaries List of Microsoft subsidiaries
Website Microsoft.com
SWOT ANALYSIS OF MICROSOFT
STRENGHT
Applications and operations divisions along with recently created online service network divisions (MSN)
Flexible workforce through contingent workers for seasonal/cyclical projects
Loyal, hardworking, and diverse workforce (20% minority, 26% women) who, in addition to good compensation, have an opportunity to do well financially through stock purchases
Multinational corporation operating through regional subsidiaries to minimize cultural differences in more than 60 countries
New product, Neptune , is a Window's interface and is an example of smart software
Relatively rapid product development processes that allow for timely updating and release of new products
Revenues and profits rising at 30% a year with merger/acquisition or investment in 92 companies over past five years
Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and cost-effectiveness
Top rating from Fortune for best company to work at and most admired company
Windows 95, 98, 2000 series, and Windows NT are globally known as the PC desktop operating system with a market share of about 88%
World's largest software company with global name recognition and strong reputation for innovative products
WEAKNESSES
Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet
Bill Gates has become Microsoft's chief software architect but has not yet developed a substantially new line of products
Dependency on hardware manufacturers to pre-install Microsoft's PC operating system
Downside of product launches and deadlines contributes substantially to employee burnout
Employee turnover has increased from 6% for a ten year period to 7.4%
Falling sales in the operating systems and server software sectors Frequent reorganization, red tape, and autocratic atmosphere
dampen employee creativity leading to a loss of key personnel and chilling of communication and innovation; 5-layers of management
IRS audits in 1989 and 1990 revealed employment status of contingent workers for whom Microsoft did not withhold taxes nor allow to participate in Microsoft's Savings Plus Plan or Employee Stock Purchase Plan, leading to a finding of tax liability for Microsoft in the "permatemps" Vizcaino litigation
Little or no significant presence in the wireless market and Windows CE has been disappointing
Not a key player in the Internet space and few products for Internet applications
Perceived by many as a cut-throat competitor that uses its dominant market position to marginalize competition by stealing/destroying the competition's products, stifling product innovation, and decreasing the availability of competitor products
Products have a single application focus and do not work well with or on-top of other products
Reputation has suffered because of entanglement in antitrust and "permatemps" Vizcaino litigation
OPPORTUNITIES
Cheaper global telecommunication costs open new markets as people connect to the Internet
Federal trial Judge Thomas P. Jackson's breach of judicial discretion and conduct in the Microsoft antitrust case clouded the proceedings in Microsoft's favor
Mobile phone applications and exploitation of personal digital assistants represent a growth industry so that strategic alliances could provide Microsoft with opportunity in a market where it currently has little or no significant presence
Popularity among people for Internet access The demand for personal computers in American and
global markets remains strong despite the growth and increasing popularity of personal handheld devices
THREATS
Apple and Linux threaten Microsoft's 88% market share of the desktop operating market
Between 1993-95, Sun Microsystems, Netscape, Oracle, IBM, AOL, and other companies moved into the Internet space and defined it while Microsoft failed to anticipate its growth or popularity
Currency exchange rates affect demand for application/operation software and hardware, and fluctuating currencies can negatively impact revenues in the global marketplace
Department of Justice antitrust litigation and current appeal creates uncertainty among employees since its outcome is not known
Hardware manufacturers (Sun Microsystems, Oracle, IBM) have collaborated on new platform technologies that replicate much of the value of Windows
Hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL, and Apple) are issuing their own pre-bundled programs on their own hardware
Linux influence growing from 7% in 1998 to 17% in 1999 Personal computers, mobile-phones, personal digit assistants,
entertainment-oriented hand-held computers, and similar wireless products for Internet access do not require Window operating system products
Rapid development of mobile devices that will displace/replace personal computers
Software piracy of commercial and consumer applications software on a global scale threatens revenue streams
Technology life cycle is shorter and shorter Unix dominates high-end mission-critical applications and its
customers do not believe Windows can handle these operations
LINUX
Company / developer Many
Programmed in Various
OS family Unix-like
Working state Current
Source model Free and open source software
Initial release 1991
(2012-09-01)
Marketing target Personal computers, embedded devices, mobile devices, servers
Supported platforms Alpha, ARM, AVR32, Black fin, C6x, ETRAX CRIS, FR-V, H8/300, Hexagon, Itanium, M32R, m68k, Micro blaze, MIPS, MN103, OpenRISC, PA-RISC, PowerPC, s390, S+core, SuperH, SPARC, TILE64, Unicore32, x86, Xtensa
License Many[3] ("Linux" trademark owned by Linus Torvalds[4] and administered by the Linux Mark Institute)
SWOT ANALYSIS OF LINUX
STRENGHTLinux is open source software so anyone can
use it. Its free and cost effective Strong alignments with companies like IBM,
HP, DELL, INTEL, ORACLE etc It is no 2 in the market with fast growing
market share 12.7%No backdoors security issuesConsistent revenue growth with strong
customer base
WEAKNESS
It is designed for server application.Less user friendly then the Windows
OSLack of standardized graphical user
interfaceCompatibility issuesDon’t have large number of software
designed for itLack of product standardization
OPPORTUNITIES
Diverse industries interested in Linus. Eg Boeing’s phantom works, Dream works etc
Collaborations to provide Linux compatible products . Eg Oracle, Sap etc
Linux into consumer electronics. Eg Sony PS Big corporate and governments interests E.g.
Brazil government has implemented Linux Economic Slow down Increasing demand for open source software
THREATS
Monopoly of Microsoft in desktop systems i.e. 90.68%
Large innovative product lines offered by Microsoft. E.g. Microsoft ( windows, office servers, Developer Tools, Windows mobile etc
Microsoft is the largest player in the Market
Technology life span getting shorter and shorter
Competitive Profile Matrix Of Microsoft And Linux
Microsoft
Linux
Critical SuccessFactors
Weight Rating Weighted Score
Rating Weighted Score
Product Quality
0.15 4 0.60 4 0.60
Price 0.15 3 0.45 3 0.45
Technology and Innovation
0.2 4 0.80 3 0.60
Management 0.15 4 0.60 3 0.45
Financial 0.1 3 0.45 2 0.30
Customer 0.2 3 0.60 3 0.60
Market Share 0.05 2 0.10 3 0.15
Total 1.00 3.60 3.15
ANALYSIS OF CPM This CPM suggest that Microsoft is still in
good position with regard to Linux This CPM suggest that both companies are
above average and in strong position. Since this both are in the field of IT and here
innovation plays a great role so Microsoft gives priority to innovation than Linux
Linux gives more priority to Web if it started to giving priority to OS part then it can be the top Company so Microsoft should think on it and makes a competitive strategy.
CONCLUSION OF THE CASE
As Microsoft has clear advantage in terms of application, big support infrastructure and in terms of security over Linux.
Microsoft is in unique position to fulfill enterprises software and brings different version of OS.
Microsoft has user friendly accountability as well as standardization of product quality.
Linux is best doing in Server application than Microsoft
Linux has wide range of application in mobile, java, android etc than micrososft
Linux is a open source and free software and many strong alignment with big companies like IBM, Oracle etc
But in comparison with Microsoft Linux has to do a lot and it should enter into other market shift so that it can compete with Microsoft and became a No. 1 Company in the world of IT.