Microsoft’s Product and Marketing Evolution

Subject: Company Analysis
Pages: 2
Words: 607
Reading time:
3 min
Study level: Bachelor

Microsoft Corporation is a company that operates in the technology sector. The firm’s evolution over the years of continuous innovation has greatly contributed to its success. The management of this corporate entity has created workable strategies to see the business through serious challenges. Although the company was successful enough to launch remarkable products in the market, it also suffered setbacks in almost equal measure. The key problems faced included the ever-mounting forces from the competitors seeking to take over the market share initially controlled by Microsoft. However, through the improvement of products to match customer needs and effective marketing strategies, the corporation has survived all the challenges to emerge as a market leader.

Microsoft’s journey started in 1975 when it was formed by Bill Gates and Paul Allen. Five years after incorporation, the company launched three products; DOS software, Windows operating system, and, Microsoft Excel. By this time, the company was already in partnership with IBM and offered the DOS products for computers. This partnership created a strong basis for the business to market its products to other prospective customers since such a major company had attested to their quality (Ibarra, Rattan & Johnston, 2018). The company carried out a strong marketing campaign aimed at gaining more market for their brands. The reaction of customers to this advert was a landmark in the evolution process of Microsoft’s brands.

The company continued its product innovation process, and in the 1990s, version 3.0 of Windows software was released. This achievement was followed by the establishment of partnerships with more computer manufacturers so that PCs could be sold to end-users with Microsoft Windows and other products installed. It is through this arrangement that the business managed to diversify into the browser business sector. The main competitor in this section was Netscape with its Navigator browser. By the early 2000s, Microsoft had taken over the business from Netscape by having its Windows Explorer browser preinstalled by intertwining it with the rest of the products. This browser would, therefore, get installed automatically while a customer or a manufacturer-installed the Windows. The company chose to offer the browser free of charge to end-users and this strategy completely drove Netscape out of business. The firm also diversified into the gaming industry by the introduction of Xbox products and into the mobile devices sector through windows phones and tablets.

At the same time, Microsoft experienced tough competition from Apple, particularly when Windows Vista had bad reviews. The newly instigated operating system had critical performance weaknesses and was prone to bug attacks. Customers did not appreciate this deviation from their expectations. Microsoft’s stock prices sunk deep as the business struggled to return to its point of glory. In 2009, the company made a comeback by introducing Windows 7 which was the game-changer. The new product instilled trust back into the market, and more purchases of their products were achieved. Moreover, the management created a strong retail network of stores to strategically position the brands to prospective buyers. The business leadership also leveraged an accurate understanding of customers’ needs as a key driver of innovation (Čirjevskis, 2019). For this reason, the company organized target marketing to convince customers why they should always buy their brands.

In summary, Microsoft has undergone an evolutionary process characterized by both successes and challenges. The corporation ensured continued improvement of its products to match the needs of the customers. At certain points in time, the company’s image was damaged, but the leadership team strategized to improve the acceptability of the products in the market. Due to its resilience, the company continues to create quality systems and products that meet the market demand.


Čirjevskis, A. (2019). The role of dynamic capabilities as drivers of business model innovation in mergers and acquisitions of technology-advanced firms. Journal of Open Innovation: Technology, Market, and Complexity, 5(1), 12. Web.

Ibarra, H., Rattan, A., & Johnston, A. (2018). Satya Nadella at Microsoft: Instilling a growth mindset. London Business School.