Final Economics Project

University of Phoenixune 18, 2007Microsoft Corporation develops, manufactures, licenses, and supports software products for many computing devices. Microsoft has shown a concentrated performance through its operations and return during the year 2006. beefed-up operating performance lends financial stability to the companionship which could be leveraged to seek more growth avenues for the company in future. However, summation competition could affect Microsoft?s margins and market share.

Microsoft first surfaced in 1983 by announcing its development of Windows, a lifelike user 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 Apples Mac operational 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. ?The revenues for 2006 were $44.3 one thousand million, an increase of 11.3% everywhere 2005. The operating profit of the company was $16.5 billion during fiscal year 2006, an increase of 13% over 2005. The lettuce profit was $12.6 billion in fiscal year 2006, an increase of 2.4% over 2005? (SWOT, 2007).

Microsoft has developed a strong speck construe 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 corporate trust in the company?s product and function, which increases the demand for Microsoft?s products.

Microsoft?s product offerings comprise five segments: client, horde and tools, online services art (combined together form platform products and services division); Microsoft business (business division); entertainment and devices (entertainment and devices division). Its software products include operating systems for servers, PCs, and intelligent devices; server applications...

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