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Bill Gates and Paul Allen Establish Microsoft

In what has since been referred to as Microsoft’s humble beginnings, Microsoft Corporation began as a venture capital company. This resulted in an investment of a measly $750,000 into the company in April 1986 (Microsoft).

In the year of 1988, just after running a successful marketing campaign, Microsoft Inc. was acquired by SoftBank Computer Services, Inc (Microsoft). Microsoft’s deal with SoftBank was later got expanded when it partnered with Microsoft Corporation in the year 1991 (Daschmeier).

In 1993, the company changed hands again, when it was acquired by Hewlett-Packard, Inc. (Daschmeier). However, at this time, the company was under a new name, Intel Corporation. The change of name was meant to symbolize the image change Microsoft was undergoing in the industry at the time (Wu and Jonathan).

In the year 1994, Microsoft got involved in some antitrust issues brought about by the US government (Microsoft). This occurred after the U.S government was given a chance to intervene in a row between Bill Gates and Ellison (Daschmeier). The action of the government forced the company to come up with a plan to address its health problems. In the following year, an agreement was reached between the two sides where Microsoft chose to close Windows 95 PC software. Microsoft also agreed to issue information to state governments that were keen to support anti-trust.

However, from the decade of 1997, Microsoft completely acted against the regulators. For instance, Microsoft stopped contributing funds to the Microsoft Pro-Files industry. In addition, it adopted major developments that affected the adoption of the new operating system (Daschmeier).

Despite these changes, Microsoft was later recognized as being a highly recognized company in the market. According to Intel Company, Microsoft is the most profitable company in the world as they have been producing highly profitable products (Microsoft). Microsoft’s growth in this 21st century can be attributed to its management team. One of the reasons why Microsoft is successful in the market today is that of both the innovative and diversified approach to business processes (Daschmeier).

Today, Microsoft has a headquarters located in Redmond, Washington. The company also has about 28,000 employees who work in its US-based operations. All these companies are run through a unit called Microsoft International, Inc., located in Tokyo, Japan. There Microsoft has reached a position of superior reputation in the world market. Its products are well accepted in the market due to their innovations and commitment to providing consumers with quality services. However, despite having an excellent reputation in the world market, Microsoft’s success can be attributed to a lack of massive investments in foreign markets.

The market entry strategy requires that the company be competent in introducing new products and services to the market. Such a strategy has not been reached since the company is not adequately aware of the market entry process. In the market entry strategy, the company has been licensed to operate in the United States. Additionally, it has been licensed to operate in Brazil and Canada, but not in the majority of other foreign countries. Since its entry into the US market, it has maintained a high strategic positioning position in the industry. It has over the years innovated its software. From Microsoft’s academic approach, it can be concluded that many of its products and services have not been suited for foreign markets.


After scrutinizing the strategies used by Microsoft in the international market, a number of recommendations can be obtained. From the strength of the company’s software and other products, one of the recommendations would be that the company invests significantly in international expansion and marketing the products to the international market.

In addition, a substantial investment is required in research and development to improve the existing products and services. This will enable the company to have the capability of scaling well in the global market. However, the competitive advantage, global presence, and future innovation of the company would depend on strategic marketing plans.

In conclusion, in this discussion, the paper has listed the company’s essential roles in the industry today. It has been appreciated that the company’s growing success in the market has a lot to do with the marketing strategies which have been used and implemented by the company.

Works Cited

Microsoft. Web.

Bachmeier, John. Microsoft and the entire Computer Industry: Facts, Fiction, and Conspiracy.

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