Final Project Paper � PAGE �1�
Final Project Paper
Sara Leon
University of Phoenix
ECO 361
Prof. Timothy Jeffcoat
June 18, 2007
Microsoft Corporation develops, manufactures, licenses, and supports software products for many computing devices. Microsoft has shown a strong performance through its operations and return during the year 2006. Strong operating performance lends financial stability to the company which could be leveraged to seek more growth avenues for the company in future. However, intensifying competition could affect Microsoft's margins and market share.
Microsoft first surfaced in 1983 by announcing its development of Windows, a graphical user interface for its own operating system (MS-DOS) that had produced for IBM PC and compatible computers. Microsoft graphical user interface was a mock-up the Apple's Mac Operating System. Microsoft Corporation now develops, manufactures, licenses, and supports software products for many computing devices. The company primarily operates in the US. Microsoft employs about 71, 200 people and is headquartered in Redmond, Washington.
Historic Microsoft photo of Paul Allen (left) and ...
Microsoft Building
Microsoft and Flickr"The revenues for 2006 were $44.3 billion, an increase of 11.3% over 2005. The operating profit of the company was $16.5 billion during fiscal year 2006, an increase of 13% over 2005. The net profit was $12.6 billion in fiscal year 2006, an increase of 2.4% over 2005" (SWOT, 2007).
Microsoft has developed a strong brand image since its inception in 1975. Microsoft is the second largest brand after Coca-Cola, with a brand value of $56.9 billion in 2006 (Microsoft, 2007). Strong brand image makes Microsoft a preferred operating system over its competitors. In addition, strong brand image promotes greater trust in the company's product and services, which increases the demand for Microsoft's products.
Microsoft's product offerings comprise five segments: client, server and tools, online services business (combined together form platform products and services division); Microsoft business (business division); entertainment and devices...