Microsoft

.Microsoft.

Founded in 1975 by Paul Allen and Bill Gates, Microsoft Corporation is one of the largest and most influential companies in the personal computer industry. Microsoft has a strong presence in almost every area of computer software, from programming tools to end-user applications.

Since the 1990s, it has increasingly diversified from the operating system market and as made a number of corporate acquisitions. Microsoft also acquired Skype Technologies for $8.5 billion in its largest acquisition to date.

Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentatives marketing tactics.

Microsoft 5 Years Stock

Over time, new competitors have arisen, pundits have predicted Microsoft's demise and through it all, the company has prospered.

One thing that is striking about this chart is that almost none of the early leaders are around any more. Even the champions of the PC era, such as Compaq and Dell have faltered. In their heyday, many of these companies seemed unbeatable. the story in software is similar. Lotus, Borland, Novell and a host of others are either gone broke or suffered steep declines.

Then, Microsoft, which after a full decade of supposed decline still puts up impressive numbers, including 35% operating margins and more than $20 billion in annual earnings. its cash hoard, while nothing like Apple's stash, is an impressive $60 billion even after maintaining a massive $9 billion annual R&D program.

Microsoft's secret is that it has never made any major blunders. Its management might have missed a few twists and turns, but was always able to recover. All of their former competitors, through a combination of hubris and poor judgement, bet the company and lost.

Avoid Vendettas:

The one mistake that ever threatened Microsoft's existence was the arrogant handling of its antitrust suit, which stemmed from its rivalry with netscape, clearly distracted senior management and helped lead to the company's relative decline.

References:

Business Insider. 2013. How Microsoft Became MICROSOFT. [online] Available at: http://www.businessinsider.com/how-did-microsoft-become-microsoft-2010-9 [Accessed: 27 Sep 2013].