The Pros And Cons Of Start-Up Companies

2422 Words 10 Pages
John Dudivisikiy (2015, [online]) argues that new start-up companies coming into the computer industry are unlikely to threaten Microsoft because Microsoft operates globally with huge cost effectiveness derived from economics of scale. Start-up companies are unlikely to have the funds with which to compete.

Start-up companies are unlikely to have the huge funding and economics of scale along with the technical knowhow required to compete with such a huge global company such as Microsoft (Dudivisikiy, 2015, [online])

Dudivisikiy (2015, [online) points out that, ‘due to its global scale of operations Microsoft devives tremendous cost advantages out of the economics of scale and this advantage is not available to new entrants’.

It is hard for
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It has taken the title of being the leading OS and software provider, which has resulted in more than 90% market share for PC OS. The majority of the population have found up OS very easy to use, it’s very familiar among them and have no reason to not keep using it. Not many brands have a chance to compete with Microsoft for this reason. Even open source OS, which are completely free and well suited to use for most people, find it difficult to attract customers to use it. Another huge quality of Microsoft is them having strong distribution channels as all the major computer hardware producers such as Lenovo, Dell, Toshiba and Samsung and major computer retailers work with them to make sure computers are sold with already pre-installed Windows software. The company also invested in companies such as Dell and Nokia to improve its relationships with them. (Jurevicius (2015, …show more content…
It’s founders were Larry Page and Sergey Brin who both attended Stanford University in 1999. They decided to work together 1996 on a search engine called Backrub. In the end thanks to their efforts, had become a domain on the internet in September 1997. To this date, Google employs over 40000 employees and 70 offices all around the world in more than 40 countries. Google tends to focus its market on with technology and helping it interact with online users which allows the public to become more tech savvy. Google’s main priority is to use their products solve the problems that the public face everyday whether it’s a machine not working properly or to assist in the cyberworld which has become an exciting but yet dangerous place. Google also approaches marketing by pushing the boundaries of technology and make its users feel good about using it. ((2014) Google History ) Recently the operating structure they have been using for nearly two decades has been changed since a new subsidiary of a bigger company called "Alphabet" become a parent company that guides it into the future. However both Larry Page and Sergey Brin are the main bosses as they’ve become Alphabet’s new CEOs allowed Sundar Pichai to take the positon as CEO of Google. (Jay Yarlow (2015) Google Operating Structure ) In terms of its successes Google has bought up over 180

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