From an economic perspective, why is Microsoft to successful Essay

From an economic perspective, why is Microsoft to successful - Essay Example Almost every computer is loaded with Microsoft operating system, without which a computer cannot function, or games. In the initial years, the company focused on creating computer language, but most of the financial success came after it embarked on producing operating systems. Today, Microsoft is one of the most popular and financially successful software companies in the world. Its products have penetrated into every household with a PC because of its easy-to-use and ground-breaking software. This paper explores the success story of Microsoft from the economic perspective. Like any other world famous companies, Microsoft is not without criticisms. It has often been criticized for its alleged bullying tactics rather than earning success through innovation. However, according to Harvard Business School professors Marco Iansiti and Alan MacCormack, the company’s success can be attributed to its capability to predict future technological developments and make maximum efficient use of the major software technologies. One remarkable fact is that Microsoft has seen huge financial successes during phases of technological revolutions because of its ability to adapt to changes. Usually, during such vulnerable phases many large businesses collapse for failing to deliver. Although it has been criticized that Microsoft Corporation’s success is largely due to its monopoly position in the global market which the company has taken full advantage of, Iansiti and MacCormack have a different perspective. They have asserted that â€Å"Microsoft wins throug h effective management of its intellectual property and an ability to spot and react to important trends before they take hold† (Silverthorne, 2002). From the early days of writing simple programming language for computers the company progressed to making operating systems based on the DOS system. In subsequent years, Microsoft grew to become Windows XP.