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Friday, March 31, 2006

Microsoft's New Features

Microsoft as we all now is one of the most successful corporations that were ever created. With billions and billions of dollars, it’s still leading its way through the top. Microsoft continues to be a role model to most of today’s existing corporations. However its control of the software market was a major issue that lawyers were making a job out of attacking the corporation monopoly ; nevertheless, Microsoft was and still to be the strongest survivor of all times. We should ask ourselves then: What makes Microsoft that special and that strong to lead all of the computer business industry.

If we take a look at the humongous resources that Microsoft holds as a major reason for its success. We should start with the most important one. Its owner and the man behind all this success , the one who created this corporation and made his fortune to be the richest human being of all times. (Bill gates) who dropped out of college just to start his own corporation (Microsoft). Gates along with thousands of employees who were chosen carefully represent the most important resources that Microsoft holds (human resources). Gates brilliant ideas and skilled leadership made the rest of resources weather financial, physical or organizational all available to lead the company through its success.

If we apply Barney study into the article in hand we could find that: organizational capital as Barney explains is an attribute of single individuals which in this case is Gates and his workers. Physical resources on the other hand represent company’s physical technology which is highly effective in Microsoft. There’s absolutely no need to clarify Microsoft’s financial resources, its just enough to say that its revenue during the year exceeded 41 billion dollars.

The article talks about a new feature that Microsoft is planning to launch which is( as the article suggests) “The integrated search is provided through the addition of a beta feature to the consumer-centric MSN Search Toolbar launched in May, which IT departments are expected to download to corporate machines. The beta feature enables users to consolidate search results inside their Office Outlook clients. According to Microsoft, the toolbar enables users to switch between desktop, web or intranet searches”

Applying the VRIO analysis to our article we could find that Microsoft resources are Valuable. Because when answering Do firm’s recourses and capabilities enable the firm to respond to environmental threats or opportunities? the answer with no doubt is yes because the feature that Microsoft is providing adds more value to Microsoft because it gives it a cost advantage due to the simple approach that users could follow.

Moreover this feature is rare or actually it does not exist because Microsoft was the first to create it in order to differentiate itself from its rivals. In addition, this feature is not difficult to imitate. It would however take other corporations some time to imitate it due to the lack of resources Microsoft has.

Finally, when it comes to the question of organization we could simply say that Microsoft is fully organized to exploit the full competitive potential of its resources and capabilities using their long experience which is led by the most important resource Gates.

As a result of the analysis we recognize that Microsoft has a temporary competitive advantage because its resources are valuable , rare , not too difficult to imitate and well organized.

Link : http://www.channelregister.co.uk/2005/11/16/microsoft_google_search/


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