Not long ago (about 13 years), I was a student and we heard of this new product called Windows that was going to revolutionise the way we use PC's. A few years later it became the biggest thing since slice bread. It was almost a blasphemy to own a PC which did not run with Windows. Year after year, every kept looking forward to the next Windows software package whether it was required or not. The world was given a blessing- Microsoft!
Fast forward 13 years into the future as I look back at Microsoft; where they stand now compared to where they stood then, it is not the same picture nor is it the same company. It seems the giant is being attacked by several smaller species and at every turn there is someone taking a chunk off.
My Opinion on why Microsoft became successful
To me, it is all very straight forward. Whilst PC's were a great machine to own, until Microsoft came along, they were not user friendly to the majority of the users. Microsoft allowed people to easily access PC's to do regular work as well as more complex. It allowed people who were new to the PC to find a friendly start whilst those who were professionals, it allowed them to build on their skills. Microsoft was fresh, it was creative and innovative! It was so good in fact; that the money which came pouring in, made Bill Gates, founder of MS the richest man on earth at the time and made the company so powerful, the government had to step in and split the company into three.
Successful strategies used by Microsoft
If there was a mob in the world of programming, it would have to be Microsoft. Those who know understand, "with great powers comes great responsibility". Microsoft had a lot of power, so much in fact that they successfully managed to muscle their competitors out of business. Was it right for them to do so? In my opinion, at the time, yes. Since they took the initiative to make something new and fresh for the world, why not? Linux had the same opportunity as well as many others who faces the wrath of the ever growing powerhouse, which was Microsoft.
Money spoke- Microsoft very cleverly signed contracts with PC manufacturers to have Windows sold as part of a package with every PC in the plant. Very soon everyone was getting free copies of Windows with every PC purchase made. Unknowingly, we were all becoming customers of Microsoft and adding the the domination which was upon us. No rival had thought of such a great idea, nor had anyone pulled anything off quiet so brilliant. It was perfectly executed in every way!
Where did it go wrong?
A very intelligent man I once met taught me a very interesting lesson- "competition is always healthy for business, it allows everyone to progress". It didn't mean much to me at the time, but today I understand.
Since Microsoft successfully annihilated their competition (it is an exaggeration, but not too far from the truth), they were left with no competitors. Slowly but surely, the great minds within the company started to fall asleep and the new products came across as regurgitated works of the predecessor with an uncanny feeling the company was getting lazy. Some may have spotted this, others didn't care, but the competition seen the signs and took advantage of this weakness.
Another blow came when Mr Gates made the same mistake as his former competitors which he almost ran out of business and some he left trembling- he forgot to forecast the future of the industry.
When Microsoft was first built, it was always the hardware which brought in the money- not the software. Gates along with Microsoft proved many experts within the industry wrong when he brought in more money they these older generation wise-men could have imagined. However, now it seems that Gates has become one of these wise-men and the world has new ideas that gates couldn't foresee. Bad Karma? Maybe, or maybe it is just ignorance.
Enter the competition
Apple- not the one you would eat for breakfast, but the one that is starting to slowly eat away on Microsoft's empire (well a section of it). Although it was nothing to be feared off 10 years ago, today Apple is a worthy competitor and not one to be taken lightly. Apple being one of those companies exploiting the bored Microsoft products offered a colourful and bright alternative- the Apple MACs.
The Apple range was full of life and vibrant. It offered PC's that looked like art decor and for those willing to take the risk of experimenting with something which is not a Windows ran OS, they were greeted with open arms and a new approach to working on a PC. Apple slowly but surely became the new kid on the block. Not only was it new, but it was forever changing its image just like the fashion world of today, just like the gadgets of today, just like the technology of today. Microsoft on the other hand remind idle.
Once the Apple MACs got going, they didn't stop at just PC's, they continued with a successful line of MP3 players, Speakers, TV's, Entertainment Centers and with every new product came innovative and creative design.
Meanwhile, elsewhere in the world, something called the internet was forming up to become the future of consoles, media, socialising and networking. With the new domain, surely came a new competitor- Google.
Google- Google was to be nothing more but a search engine. Sounds boring and i wouldn't blame if one was to ignore the growing presence Google had in the industry- after all, it was nothing more but a search engine for crying out loud. However, as another lesson once taught by my mentor, " you should never, ever, under any circumstance underestimate your competition. If you do, I will break your face for being a shit student". Unfortunately, gates was self taught, no mentor made threats to him. Gates is the one who was making the threats to all those below him.
Whilst Microsoft sat watching, Google built a fortune on advertisement, they continued their success buy being innovative and creative and instead of taking their weaker competition for granted (Yahoo and MSN), they didn't sit idle, they chose to build on what they had to offer to stay ahead of their competitors. They gave us Google Video, Google Map, Google Globe, Google desktop (unlike regular boring desktops, this one had the ability to give you the weather, news bulletins and other small bits of information in a visually pleasing and none disruptive manner) along with a better email service.
As concerns grew within Microsoft and they realised they were slowly but surely losing parts of their monopoly as new competitors started to emerge, Microsoft chose to target a new audience- the video gamers. This meant taking on the current champion of the gaming world, none other then SONY.
SONY- Taking on Sony wouldn't be easy. Microsoft should have known this and probably did. After all, they took out SEGA, one off the gaming industries legends within 2 generations. In fact, they were so good, they could have killed Sega during the Saturn years if it had not been for Sega having decent savings to try again.
Sony was doing the same as Microsoft's other competitors- they were offering innovative gaming. Naturally, when the Xbox was released, it was released to doom. Microsoft tried hard and failed, although offering a better console, the software running on their console didn't quiet manage to conquer the audience. Microsoft was left with a huge negative some- losses on a console that failed miserably. To add insult to injury, the 20 million plus customers they had, they were left with a product who's life had just been given the axe whilst the the Sony customers were given a product which is still going strong on its 8th year in the market although having 3 new next generation consoles to go up against.
As they say, "if at first you don't succeed, pick yourself up and try again". Along comes the 360. Microsoft chose to heavily invest in this console and chose to release the console before final tests and improvements could be made. The competitors; Nintendo and Sony released a year later, both offering more innovative devices. The Nintendo Wii- a fully motion controlled gaming console. The PS3- Offering a integrated BluRay Player, Sixaxis controls and built in WiFi and SATA HDD.
Releasing the console came with its advantages; head start on their competition and the opportunity to build a better library of games (the reason why they lost the previous generation of console wars) by offering a next gen console to the developers before the others came along. However, all this came at a price. Due to releasing the console early, a large number of consoles were doomed from the get go. Now famously known as "the red ring of death", a fault which caused the console to cease working and made countless buyers of the 360 send in their consoles if not for one, then several fixes. This lead to the 360 losing sales, cost of repairs and offering a 3 year warranty with every purchase of the console. As you can imagine, it cost Microsoft money, something no company likes.
To make up for their losses in sales, the company chose to cut the price of their console a staggering 3 times. Whether they are making a profit, a loss or breaking even is unknown, but whether it will bring the 360 success is the real question one should ask. The Wii is selling stupidly across the globe and no price cuts have been mentioned and the PS3, being the most expensive console of the 3, has only had one small price cut and yet has managed to build on its sales and even compete with the 360 after the price cuts.
Meanwhile, what seemed like a failed console, the PS3 started to grow momentum. BluRay won the format war and developers who couldn't get their heads around the complex architecture of the PS3 processor chip are now able to utilise it more efficiently. In house developers such as Insomniac, Guerilla Games as well as many 3rd party developers are seeing the benefits of the console. Microsoft's early launch as well as decision to not have a BluRay player is starting to cause more of a stir as developers are starting to point out the lack of space when creating games.
XBL which was the ace in the hole for Microsoft is also showing signs of weakness as their rival Sony is starting to launch new applications online such as; Home and Playstation Life.
Whilst Microsoft is tending the the hardcore gamers, Sony is creating games for both audiences. Whilst Sony is becoming more creative, Microsoft is showing less.
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Conclusion
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