Answer to Question #196502 in Economics for GAANAA ROBINSON

Question

Explain why the establishment and exploitation of network effects are key elements in the competitive strategy of computer software provider Microsoft Corporation

Answer 1

As an established leader in the software and accessibility market, Microsoft strives to implement the principle of universal accessibility in the field of innovative technologies and develops, promotes, and implements technologies that are optimized to meet the individual needs of users. Microsoft's work in this area began in 1988 with the incorporation of the first accessibility technologies into the operating system. Microsoft has a dedicated business unit dedicated to all planning, development, compliance, and promotion of accessibility technologies. Overall, Microsoft's accessibility activities are driven by four key areas:

embedding accessibility into Microsoft technologies;

research and popularization;

technological innovation;

cooperation and strategic alliances.

For many years, Microsoft has been driven by a strategic vision: "A computer in every home, on every desktop, plus first-class software." However, the advent of the Internet and the proliferation of non-PC electronic devices, such as pocket calculators and TV set-top boxes, prompted Microsoft to broaden its vision in 1999 to: "Deliver new experiences anytime, anywhere, on any device with premium software. providing "

Microsoft CEO Steve Ballmer identified a number of priority areas for employees to focus on:

 

Openness and respect. Employees should be open to expressing their ideas and thoughts while showing respect for others. "This approach must be followed in any relationship - within working groups, between teams, with partners and, above all, with customers" - said Bllmer.

Craftsmanship. Should be the foundation of any work.

Confidence. Employees, like the company as a whole, need to earn trust every day, not only through quality products, but also through respect for customers. "If there are reasons for changing plans (closing a production line, changing licensing policy, changing terms of delivery or releasing updates) we must be fully responsible for how this affects customers."

Active interaction with clients. A company needs to keep an eye on not only prevailing trends, but also to consider the interests of small groups of consumers that can potentially become large and important. "In order to always be aware of the needs of customers, it is necessary to use the possibilities of the Internet more widely."

Innovation and Leadership. It is necessary to clearly understand the main technological directions and priority goals. "We are well-positioned to leverage our technologies — Windows and .Net — to help users meet their needs. Our mission is to stay at the forefront of the industry by expanding our product capabilities, customer support, and partnering."

Expansion of the scope of activity. Microsoft should not focus solely on the personal computer and desktop software market. "Our mission requires active work in all areas. We must find and explore new directions. The result of this work can be the creation of new products, development of business solutions, gaining important experience and deepening interaction with new and existing partners."

Global approaches and solutions. "We cannot tackle digital challenges alone, but we can work to reduce the cost of digital technologies and provide the means for widespread adoption," Ballmer noted that Microsoft will then be able to combine ideas and technologies from different business areas around a single platform, and the next version of Windows (codenamed Longhorn) should be a testament to this. "I personally attach great importance to my participation in our mission. With good specialists, a strong platform, competent leadership, flexible interaction with clients, and an awareness of our responsibility as an industry leader, we have every opportunity to realize our own potential, " Ballmer concluded.