Critique on Microsoft cooperation

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Critique on Microsoft Cooperation Article
The article denotes the growth of Microsoft Cooperation; 2nd best valuable brand by
Forbes; moreover, it depicts the overview of the company’s economic profile and its structures
right from management into investors as well as the company’s political and economic ties.
The study is based on the context of the business establishment, growth, advancement
and other supportive ties within which a business must operate to yield its full potential and
ultimately its continued existence as well as service delivery improvement. The article is closely
connected to class readings in a manner to depict that, for any good business trivial, stable
political, economic, and social-cultural factors must come into constant play. Further, the ties
with other organizations need agreeable terms with the full conceit of patents and licensing
(MacCormack & Iansiti, 2009).
The Microsoft Company had a very humble start with Paul and Gates as the co-founders
who developed Altair BASIC interpreter, which could be used to execute functions written in the
BASIC language. The progress was great and they got a great breakthrough when IBM-PC
decided to integrate their Windows OS DOS for its hardware functionality. This meant that for
every IBM’s hardware PC, Microsoft’s software OS would be integrated and work together
(MacCormack & Iansiti, 2009). However, the contract with IBM ended leading to massive court
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cases and later, the two split. In other advancements, Microsoft adopted the browser and later the
adoption of Nokia’s license to make phones and video games such as Xbox. Indeed, all these
were not easily acquired and integrated. Court suits and injunctions worked all through. The
history might sound absurd but Microsoft’s current standing speaks for itself (Klein, 2001).
Diversification is a rule of thumb for venturing into the new but related field. Microsoft
Cooperation realized its growing profits and demand for its customers; an urge that was pursued
despite the antitrust violations around its partnering organizations and court verdicts. However,
these drawbacks did not derail its acquisition of NDS which later transformed it into device and
consumer company (MacCormack & Iansiti, 2009). The other joint ventures and holdings as well
as critical intellectual properties such as licensing its software, computing, and gaming hardware,
commercial and commercial licensing as well as other D &C which are areas otherwise not
covered by other segments have acted as Microsoft’s largest revenue earners.
In addition, Microsoft has for a long time based its antitrust lawsuits on the intellectual
owing properties. At its take-off stage, Microsoft relied on pushing the manufacturing
companies, who are its contract partners, to promote their products. In one incident with
Netscape, the company used shackles discouraging user of Windows 95 and 98 from the inability
to install Netscape browser which Microsoft knew would be adopted by many people thus
denying them of revenues (MacCormack & Iansiti, 2009). Through threats and inducements,
Microsoft survived through to be the 2nd valuable brand according to Forbes 2014 (Klein, 2001).
In terms of business ethics, these threatening and shackle tactics are not worth the contract and
mutual inter-dependability. This portrays immoral tactics through which some businesses acquire
revenue which is not really their own.
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The manner in which Microsoft rose to fame and to gain its revenues was not all legal.
Some antics used by Bill this company was directly aimed at hurting and out-compete its rivals
like Netscape and IBM. Also, the company ignored many antitrust lawsuits and even went ahead
to threaten other companies through unethical strategies to promote their products with an intent
that they will also gain revenue through licensing while they have not participated in these
promotions.
Questions
1. Could Microsoft have gotten the status quo it has was it not for its unethical misuse
of promotional strategies?
2. In the above question, what are the most important lessons other companies should
learn from Microsoft’s unethical antics?
3. The threats and antitrust issues faced by Microsoft, which other issues are in
pertinent with its operations?
Work Cited
Klein, B. (2001). Did Microsoft Engage in Anticompetitive Exclusionary Behavior? The
Antitrust Bulletin, 46(1), 71-113. http://dx.doi.org/10.1177/0003603x0104600102
MacCormack, A., & Iansiti, M. (2009). Intellectual Property, Architecture, and the
Management of Technological Transitions: Evidence from Microsoft Corporation. Journal of
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Product Innovation Management, 26(3), 248-263. http://dx.doi.org/10.1111/j.1540-
5885.2009.00656.x

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