![]() Licensing became a profitable distribution strategy for Microsoft. More specifically, during its initial years since its first introduction in 1985, Microsoft aggressively negotiated with manufacturers to produce personal computers that came pre-loaded with Windows. This success stems from a market entry strategy that involved aggressively securing software licensing agreements with computer manufacturers. Note that Windows remains the most popular desktop operating system in terms of market share. An Analysis of the Elements of the Business Strategy of Microsoft Market Penetration through Licensing Agreements The success of the company stems not only from the initial leaderships of founders Bill Gates and Paul Allen but also from a business strategy that primarily revolves around developing and introducing technological innovations while maintaining and expanding further its market scope through aggressive marketing efforts and product diversification. Undeniably, the “Microsoft” brand is a household name. ![]() The company is behind some of the most well-known and widely-used software products and services to include the Microsoft Windows operating system, the Microsoft Office suite of productivity applications, and the Internet Explorer and Microsoft Edge web browsers, as well as notable hardware products, to include the Microsoft Surface line of touchscreen personal computers and the Xbox gaming console. ![]()
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