About the company Global Super power Giant by year 2000

Microsoft holds a dominant position on the PC OS market Microsoft has a very high and stable market share Largest competitors: Apple Macintosh, IBM OS2 and Linux variants Barriers to entry are high:

Cost of developing OS Applications barrier

Market Share Windows 2000 -> 92% Ms-Word & Excel -> 94% Internet Explorer -> 95%

MS aggressive chase to promote and maintain monopoly for Internet Explorer

Used Supplier pressure & incentive tactics to achieve their goal.

1. MS bound IE in Windows as an integral part by contract.2. Set strict limits for OEM’s to re-configure in Win 95 & Win 98, this

ensured IE binding to Windows.3. MS used incentives and licensing threats to OEM(PC-Makers) to include

IE in their brand promotions, which intended Navigator exclusion from the market.

4. MS created barriers via technical integrations & licensing agreement clauses to ensure that OEM’s, which gave OEM & partners less or no choice other than IE.

1. IBM as an OEM announced to include Lotus on its manufactured PC’s. Due to which Microsoft stripped them of their Win 95 License, covering up the move by masquerading it as an Audit license matter.

2. IBM had to pay back licensing fee of 31m to regain position as a licensed OEM again. Was news just 15 mins prior to Win 95 launch

3. Between 1994-1997 pressured IBM to reduce support for IBM’s products that were competitor to Microsoft.

4. That’s how they punished IBM

1. Yes the mighty Apple we know today!2. Apple relied on MS to develop their software for Macintosh

(e.g.: QuickTime)3. Unsuccessful attempts made by Microsoft to pressure Apple to

drop the project4. Microsoft threatened Apple to stop the development of

Office-version of Macintosh, if Apple did not ship Internet Explorer as a standard in their every Mac.

5. 1997, Apple endorsed Internet Explorer .

1. Compaq dared to remove IE & MSN icons from their PC’s2. Microsoft showed intent to terminated their License for Win 953. Compaq surrendered! 4. And that’s not all…..there is more drama5. Compaq turned around policy to favor and promised to

promoted IE exclusively as pre-installed. Even better6. Compaq ceased the pre-install of Netscape Navigator.7. Microsoft gauranteed Compaq lower rate than any other OEM.8. Free internal use of all Microsoft product within Compaq since

1998.

• Of course Microsoft has done wrong…Legally!• They have stifled innovation.• No choice for users.• Monopoly and un-healthy competition.

Well, that's the aesthetic part of it..... Management wise:

They could do it because no one else could! They had the management to do it. All the OEM’s agreed for their gain! Other companies did not strategize against MS. They did not primarily sell the OS on basis of IE, it

was just another part of the whole package.