Question:
Case Study
Marketing Excellence >>Microsoft
Instruction: Kindly read the case below and answer the questions regarding the case.
Microsoft is the world’s most successful software company. The company was founded by
Bill Gates and Paul Allen in 1975 with the original mission of having “a computer on every
desk and in every home, running Microsoft software.” Since then, Microsoft has grown to
become the third most valuable brand in the world through strategic marketing and
aggressive growth tactics. Microsoft’s first significant success occurred in the early 1980s
with the creation of the DOS operating system for IBM computers. The company used this
initial success with IBM to sell software to other manufacturers, quickly making Microsoft
a major player in the industry. Initial advertising efforts focused on communicating the
company’s range of products from DOS to the launch of Excel and Windows—all under a
unified “Microsoft” look. Microsoft went public in 1986 and grew tremendously over the
next decade as the Windows operating system and Microsoft Office took off. In 1990,
Microsoft launched a completely revamped version of its operating system and named it
Windows 3.0. Windows 3.0 offered an improved set of Windows icons and applications
like File Manager and Program Manager that are still used today. It was an instant success;
Microsoft sold more than 10 million copies of the software within two years—a
phenomenon in those days. In addition, Windows 3.0 became the first operating system to
be preinstalled on certain PCs, marking a major milestone in the industry and for Microsoft.
Throughout the 1990s, Microsoft’s communication efforts convinced businesses that its
software was not only the best choice for business but also that it needed to be upgraded
frequently. Microsoft spent millions of dollars in magazine advertising and received
endorsements from the top computer magazines in the industry, making Microsoft
Windows and Office the must-have software of its time. Microsoft successfully launched
Windows 95 in
1995 and Windows 98 in 1998, using the slogan, “Where Do You Want to Go Today?”
The slogan didn’t push individual products but rather the company itself, which could help
empower companies and consumers alike. During the late 1990s, Microsoft entered the
notorious “browser wars” as companies struggled to find their place during the Internet
boom. In 1995, Netscape launched its Navigator browser over the Internet. Realizing what
a good product Netscape had, Microsoft launched the first version of its own browser,
Internet Explorer, later that same year. By 1997, Netscape held a 72 percent share and
Explorer an 18 percent share. Five years later, however, Netscape’s share had fallen to 4
percent. During those five years, Microsoft took three major steps to overtake the
competition. First, it bundled Internet Explorer with its Office product, which included
Excel, Word, and PowerPoint. Automatically, consumers who wanted MS Office became
Explorer users as well. Second, Microsoft partnered with AOL, which opened the doors to
5 million new consumers almost overnight. And, finally, Microsoft used its deep pockets
to ensure that Internet Explorer was available free, essentially “cutting off Netscape’s air
supply.” These efforts, however, were not without controversy. Microsoft faced antitrust
charges in 1998 and numerous lawsuits based on its marketing tactics, and some perceived
that it was monopolizing the industry. Charges aside, the company’s stock took off,
Case Study
Marketing Excellence >>Microsoft
Instruction: Kindly read the case below and answer the questions regarding the case.
Microsoft is the world’s most successful software company. The company was founded by
Bill Gates and Paul Allen in 1975 with the original mission of having “a computer on every
desk and in every home, running Microsoft software.” Since then, Microsoft has grown to
become the third most valuable brand in the world through strategic marketing and
aggressive growth tactics. Microsoft’s first significant success occurred in the early 1980s
with the creation of the DOS operating system for IBM computers. The company used this
initial success with IBM to sell software to other manufacturers, quickly making Microsoft
a major player in the industry. Initial advertising efforts focused on communicating the
company’s range of products from DOS to the launch of Excel and Windows—all under a
unified “Microsoft” look. Microsoft went public in 1986 and grew tremendously over the
next decade as the Windows operating system and Microsoft Office took off. In 1990,
Microsoft launched a completely revamped version of its operating system and named it
Windows 3.0. Windows 3.0 offered an improved set of Windows icons and applications
like File Manager and Program Manager that are still used today. It was an instant success;
Microsoft sold more than 10 million copies of the software within two years—a
phenomenon in those days. In addition, Windows 3.0 became the first operating system to
be preinstalled on certain PCs, marking a major milestone in the industry and for Microsoft.
Throughout the 1990s, Microsoft’s communication efforts convinced businesses that its
software was not only the best choice for business but also that it needed to be upgraded
frequently. Microsoft spent millions of dollars in magazine advertising and received
endorsements from the top computer magazines in the industry, making Microsoft
Windows and Office the must-have software of its time. Microsoft successfully launched
Windows 95 in
1995 and Windows 98 in 1998, using the slogan, “Where Do You Want to Go Today?”
The slogan didn’t push individual products but rather the company itself, which could help
empower companies and consumers alike. During the late 1990s, Microsoft entered the
notorious “browser wars” as companies struggled to find their place during the Internet
boom. In 1995, Netscape launched its Navigator browser over the Internet. Realizing what
a good product Netscape had, Microsoft launched the first version of its own browser,
Internet Explorer, later that same year. By 1997, Netscape held a 72 percent share and
Explorer an 18 percent share. Five years later, however, Netscape’s share had fallen to 4
percent. During those five years, Microsoft took three major steps to overtake the
competition. First, it bundled Internet Explorer with its Office product, which included
Excel, Word, and PowerPoint. Automatically, consumers who wanted MS Office became
Explorer users as well. Second, Microsoft partnered with AOL, which opened the doors to
5 million new consumers almost overnight. And, finally, Microsoft used its deep pockets
to ensure that Internet Explorer was available free, essentially “cutting off Netscape’s air
supply.” These efforts, however, were not without controversy. Microsoft faced antitrust
charges in 1998 and numerous lawsuits based on its marketing tactics, and some perceived
that it was monopolizing the industry. Charges aside, the company’s stock took off,
