Introduction
Microsoft is a technology company that develops and sells computer software, consumer electronics, personal computers, and related services. Microsoft is derived from the first names of the two founders, Bill Gates and Paul Allen.
The tech giant’s history can be divided into four phases: founding 1975-1983, marketing 1983-1995, expansion 1995-2007, and transformation from 2007 to the present.
Microsoft has been able to develop a unique business model in the corporate world. The Company generated nearly $110 billion in revenue for the fiscal year 2015 with over a 29% profit margin! More than 99% of revenues come from sales of Windows products and Office 365.
About Microsoft
Microsoft is a multinational technology company headquartered in Redmond, Washington. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. The most prominent product is the Microsoft Windows operating system and associated hardware devices such as mice, keyboards, and monitors. The Company also markets computer hardware under the name “Microsoft Hardware,” which was founded in 2018 after being spun out from existing companies that were previously part of Microsoft’s overall portfolio (the former “Hardware” branch).
The Company was founded by Bill Gates and Paul Allen on April 4th, 1975, as Micro-Soft Inc. Still, it changed its name to Microsoft Corporation in November 1976 after deciding to focus on developing software rather than electronics or computers. As well as being an iconic brand that has come to represent all things techy within popular culture today, it also operates one of the largest R&D budgets at USD 11 billion annually!
History
Microsoft is one of the oldest and largest software companies in the world. It was founded by Bill Gates and Paul Allen, who recognized a growing need for personal computers after working together at MITS to create a BASIC interpreter for the Altair 8800. Microsoft’s first product was BASIC for the Altair 8800, which they licensed to MITS for $3,000. After this success, Microsoft continued to develop more programming languages (COBOL and FORTRAN) but also started creating more complex applications such as Word 1.0 and Excel 1.0—which became some of their most successful products today!
Microsoft has grown into one of America’s biggest companies with over 500 million users worldwide; however, its headquarters are still located in Redmond, Washington, where it all began over 40 years ago!
Success Story
Microsoft has a long history of success. The Company was founded in 1975, and its initial product was a BASIC interpreter for the Altair 8800 personal computer. Since then, Microsoft has grown into one of the largest corporations in the world, with more than 100,000 employees across 40 countries. In addition to being a software company, Microsoft is also involved in hardware manufacturing with its Surface line of tablets and laptops; cloud services through Azure; artificial intelligence through Bing search engine; augmented reality through HoloLens; big data analytics; and much more.
Microsoft’s business model consists of five key components: operating systems (OSes), productivity software (PS), server products (SPs), online services/cloud offerings (OSCs), and hardware devices like Xbox consoles or Surface PCs, which run on Windows OSes such as Windows 10 Pro running on Intel processors with an NVidia graphics card inside them.
Revenue Model
Microsoft has three main revenue streams:
- Windows
- Office
- Cloud
Business Strategy
Here’s a quick overview of the Microsoft business model:
- Product Development
Microsoft has three main areas where they develop products and services: consumer, commercial, and device hardware. Each of these areas focuses on providing customers with the most relevant solutions across all industries. They also have strong partnerships with other businesses or individuals who share similar goals and values – such as Salesforce, LinkedIn, GitHub, and Google Cloud Platform.
- Marketing Strategy
To create awareness among potential customers about their products and services, Microsoft uses traditional marketing techniques such as advertising campaigns through television/radio spots; billboards; print ads, etc., but also use other more innovative methods such as social media posts that are tailored specifically for each audience segment (such as LinkedIn Pulse posts).
Microsoft Company Profile
Microsoft is a multinational corporation that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, and personal computers. Bill Gates and Paul Allen founded it in 1975 to develop and sell BASIC interpreters for the Altair 8800. Microsoft joined Apple Computer in 1979 as a FIDO (Financial Industry Data Exchange) associate member.
Microsoft’s business model has been closely aligned with its product strategy since its inception. The Company focuses on four core platforms: Windows, Server products (including SQL Server), Azure cloud services, and Office 365 productivity suite.
The Company has developed numerous successful businesses through organic growth as well as acquisitions over time; these include Bing search engine, which provides web search results from MSN; Xbox 360 gaming console that connects online gamers via Wi-Fi connections; Skype internet telephony service that allows users to make voice calls over IP networks without paying long-distance charges; LinkedIn professional networking service website which connects professionals with similar interests around various topics such as jobs postings etc.; Yammer enterprise social media application designed for use within organizations rather than between individuals like Facebook or Twitter but still provides similar features such as real-time messaging capabilities among users inside your organization etc.
Microsoft Business Model Canvas
Microsoft Business Model Canvas is a tool for strategic planning. It helps you focus on the most important aspects of your business model and identify the key activities, partners, and resources needed to build it.
This process involves questioning your assumptions about how your business works and then exploring opportunities for change within that framework. It makes it easier for others in the organization to understand what needs improving or updating.
Microsoft is a big corporation that is constantly facing new challenges.
Microsoft is a big corporation that is constantly facing new challenges. The Company must innovate to stay relevant in the market and keep up with its competitors.
Conclusion
Microsoft has been a juggernaut for so long that it’s hard to remember the world before them. But even though they have an ever-growing variety of products and services, they are still true to their roots as a computer software developer. They continue to innovate in this area with new versions of Windows, Office programs, and web browsers.
Also Read More Articles Below:
Mohawk Industries Business Model
