Riding The Bear Analysis

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The movie “ Triumph of the Nerds: Riding the Bear” may sounded funny when you first heard it, but in fact it is a documentary about how Microsoft rise as a major company that produces Operating System (OS) that is used worldwide until this day. The key of Microsoft success can be seen from the title “Riding the Bear”, where at that time Microsoft was still a small company that has a very smart business strategy. The business strategy that Microsoft employed is the utilization of a powerful company called the IBM, and in a way they rose to the top by using them.
Another important part of the movie is the fact that this is the initial introduction to the world of Personal Computer (PC), whereas at that time the idea of a small size plastic boxes
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Therefore Microsoft bought an OS from a small company, which is managed by Paul Allen with only $50000, from this moment Microsoft turned around and licensed it to the world for up to $50 per PC therefore not only it replaced Kindall’s OS but also Microsoft is on the path of success.

In the first few years IBM reaped a fortune, but then rivaling companies soon appeared and started to use the “clone strategy” for IBM’s PC product. The clone strategy is an effective strategy for different manufacturers and industries to reproduce a similar product, which are not originally their design or invention. Because at that time IBM’s PC was a popular item in the market, other companies tried to copy and replicate the same type of PC in terms of hardware and software, thus cloning IBM’s product.
This clone strategy is a smart way to make easy money, and opened to many new business chances for hardware and software maker such as Northgate, Dell, and Intel. This is the golden time for Microsoft to make profit because Microsoft license and provided these clone manufactures the OS they needed, thus increasing the number of competitors for
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A reverse engineering is a strategy, which makes IBM market shares become worse, it is the ability to copy another company’s product in this case IBM’s PC design and still be legal by figuring out through opening it up and examining its internals on how it works. By knowing on how it ticks, other companies can make a new product based on the product they reverse engineered.
In a sense this strategy opens up to many business opportunities to small manufactures company and for the customers. This can be seen today where manufactures could produce a product with a lower price that fit the customers’ demand. On the other hand this strategy hurts the original company’s market value because it prevents the company’s ability to monopolize and dominate the market

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