SUBMITTED TO

DR. NILANJAN SENGUPTA

PROF. HRM & OB

Case 1: CHAIRPERSON-ACADEMIC
ENHANCEMENT

Microsoft: SDMIMD, MYSORE

The next BY

chapter. NITHIN SRINIVAS(2111)

MOHAMMED RAYYAN(2112)
RONAK S (2113)
 CASE BREAKUP
Introduction
Industry Background - Monopoly
US Dept Of Justice
Consequences of The rulings of USDO
EU RULINGS
Consequences of the EU RULINGS
Further Google petitioning the USDO
Evolution
Stakeholder analysis
Questions
Conclusion
 One of the top software companies during the
information age fights the drawn-out antitrust
battle with the European union regulators.

The company making changes to its current

INTRODUCTI business model
ON

Primary focus on product development

Industry Background - Monopoly

• Microsoft dominated the US with its cloud computing.

• Even with its search engine that tangled with google
• In Europe Microsoft dominated the market by not disclosing the information to the third party
developers to develop a new software that is better than Microsoft.
• The customers demanded the choices of the windows component in their operating system
 US Dept Of Justice

• Ruling 1-Customers must have choice regarding what

windows components are mandatory in installation of the
Operating System.
• Ruling 2-Microsoft must disclose certain information to allow
third-party developers to create applications that
interoperate better with windows.
• Above two rulings closed the doors for further investigation.
Consequences of The rulings of USDO
Forced competitors to look elsewhere to secure fair ground.

Microsoft wasn’t allowing sun microsystems media player to operate successfully on a

windows platform.

Microsoft asserted its monopolistic dominance on its competetors

Big Companies such as IBM,Sun microsystems,Google,Oracle looked towards European

union for securing their prospects from the unethical behaviour of Microsoft.
 EU RULINGS

• $613 Million Fine and to alter business model.

• Ruling 1-Microsoft must not ship windows with its own
embedded media player.
• Ruling 2-Microsoft was also required to produce
documentation to assist its rivals in writing windows office
productivity software.
Consequences of the EU RULINGS

SunMicrosystems and Microsoft had an

out of court settlement for over $3
Billion.

Microsoft then switched to ship

stripped down version of windows to
the EU.

In July 2006 EU again levied a fine of

$356 million for failing to comply the
anti trust rulings.
 Google had filed for having a
Further competitive disadvantage as the
new Operating system would have
Google Microsoft IE as a default browser.

petitioning
While the petition was ruled out
the USDO as it didn’t seem to be predatory.
 A new startup like system was incorporated at
Microsoft, which promotes building values and
relationships with partners.
Renewed interest in marketing by elevating its CMO
report directly to its CEO.

11% fall in share price of Microsoft for its change in

Evolution approach to compete with rival game consoles and
search engines.
Googles Market share was predicted to approach
over 90% in search market by 2013.

Control of search business would steer customers to

desired markets.
Stakeholder Analysys
Conclusion

• Though the company was driven by the ambition of the founder Bill Gates who
believes in the power of innovation and strives to reinvent Microsoft ahead of
disruptive technological curves, it had always worked towards delaying the disruptive
technological curves so that they could match the intensity which was very evident.
• The Shares of Microsoft plummeted when it decided to compete in the game console
and search business, pouring markets thoughts about the arrival of change which had
to be eventually embraced by Microsoft.
• The industry is a tough place to be,being extremely competitive and extremely
innovative is the key and anyone lacking this would resort to unethical means to
survive.
Questions

Q1. What ethic is Microsoft following practicing in the U.S and globally
as seen in the case? Do you agree with this ethic? Give reasons for
your answer.

Q2. Which stakeholders stand to lose or win in Microsoft’s quest to be

number one in the technology markets it seeks to dominate? Explain
and offer evidence.

Microsoft Word
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