Microsoft is Moving on All Cylinders because they play all games

Microsoft's current success is due to the fact that they are a multi-faceted company that isn't afraid that take chances.

Microsoft beat earnings!  They knocked 'em dead and the largest technology company in the world is advancing by 12%, a huge increase in market capitalization.

The reasons for Microsoft success are clear - Microsoft isn't afraid to introduce products where they are not the biggest and best.  They can go up against the biggest and even to lose.  They play in the ad space and they play hard; it doesn't matter that Google controls this space.  They offer the Zune to compete in the mp3 player market with Apple.  The compete with Sony and Nintendo in the consumer gaming marketplaces.  They compete with Oracle and every other major software company in the world for commercial software.   All of these products, as well as Windows and Vista's launch, enabled them to beat their numbers.

Sure, Michael Dell and you may be using Ubuntu, but so what?

Microsoft today shows us the importance or moving beyond just one core product to grow the business.

Contrast this with GE's strategy of not playing unless they are the biggest, and you will see understand why Microsoft is going to outperform over the coming years.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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Comments

  • Mass Market Tech

    October 26, 2007

    I disagree. I have yet to see one new area that Microsoft has made money in. It is still losing money in video games, mp3 players, etc. At the same time, its core operating system and apps are coming under increased competition. This is a short-term spike unless Microsoft stops dabbling and gets serious.

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