Abstract

For years the Microsoft Corporation has been the go- to business for any form of electronic. Always being in the cutting- edge forefront of the electronic frontier, things are in fact changing with the current times. Through a series of events, not entirely of their own making, there is evidence to suggest that Microsoft is slipping from top- dog to the position of a successful company that is just not as formidable as it has been in previous years.

The Microsoft Corporation

Technology is the new frontier as far as many people are concerned. Every day citizens all of the planet are waiting in line to buy the latest device be it computer, cell phone, television, tablet, etc… One of the leading corporations putting out the mind- bending technologies is no other than the Microsoft Corporation. Still, some people feel that they are beginning a decline as they seem to be behind the ball on Apples latest products.

The real question, then, is whether or not Microsoft’s monopoly is waning, and if so, then how long will it take their total decline? Although many believe that Microsoft is still on top of their chosen industry, their attempts to stay up- to- date with current products seems to illustrate that they are losing the foothold as cutting edge.

First off, this information is imperative to many people; not just economists, business people, and researchers, but also computer engineers and investors. People need to have a solid base of data to evaluate before they form a partnership with Microsoft, be it a consumer relationship, potential investment opportunity, or anything else. As such, this paper strives to provide just that, an unbiased report of the facts so that readers can determine for themselves the true strength of the Microsoft Corporation in 2011.

The real question, then, when testing this hypothesis is what sort of data can be used to solve the problem at hand? What is the most ideal type of information that will provide enlightenment? A thorough study, one that includes the laying out all of all pertinent facts as clearly as possible, gaining access to market trends for Microsoft and its leading competitors, would be the best option.

Being able to see how the stocks are rising and falling, what the sales numbers are, as well as identifying the percent of products sold belonging to each company, any one should be able to deduce the true state of the Microsoft Corporation’s business. Since its inception in 1975, Microsoft has seen an annual increase in sales. Yet, in 2009, the annual sales actually decreased by 3.2% from 2008. That same year, net profit fell by 17%, quarterly sales fell 18% and forth-quarter profit fell by 29%. (Chan 2010).  If this decline in profits and sales continues, it can be seen as threatening Microsoft’s dominance in the high tech world because it signifies consumer dissatisfaction with Microsoft and a decision to commit to products from Microsoft’s competitors.

For decades Microsoft has been the leading technology provider; computers, software, operating system, everyone was using Microsoft’s products. One of the key  products central to the Microsoft Corporation’s success has been its operating system; while it’s been upgraded and re- titled 98, ME, XP, Vista, 7, etc… Windows has surfaced as one of the most user friendly systems for anyone, from the avid user to the casual solitaire player. To date, there has been no real competition to the Window’s operating system and it remains the standard operating system for PC users. Until another product of equal user friendliness is offered, Microsoft will most likely maintain its dominance in this field.

Microsoft Office software has traditionally enjoyed dominance over office and email software. Its monopoly like hold over this area has remained unchallenged for decades. Yet, with the advent of Cloud Computing, Google is threatening to take over the Microsoft dominance with a product that may turn out to be more consumer friendly. In 2010, there were several heated battles between Microsoft and Google.  “Google Apps, a cloud based set of productivity tools including Gmail and Google Docs (Brodkin 2010)” is one way in which a rival company is attempting to upset Microsoft’s dominance in the office software sector. It will be important to pay close attention to the numbers of businesses turning to office software alternatives in order to ascertain in Microsoft is indeed losing its competitive edge in this area.

Apple has also emerged as a threat to Microsoft’s dominant position in the home and business office. Apple’s systems, however, have been in use pre-dominantly by artists and designers utilizing their own unique platform. It has not, however, been the traditional computer of choice for offices, home use and schools. It is a fact that Windows is traditionally taught in school computer classrooms across America, is in use by the majority of businesses, and is on the majority of personal computers it seems; with this being the case, when a consumer goes to pick up a new PC they typically go with what they know, Windows; ultimately re- enforcing the cycle.

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