Microsoft Corporation's Hostile Take Over of Red Hat Linux
Table of Contents
I. Executive Summary 3
II. Current Marketing Situation 4
Industry Structure 4
Product/Product Line and Market position. 6
Major Customers and Market Segments Served. 6
Other Products/Product Lines. 7
III Opportunity and Issue Analysis 9
SWOT Analysis. 9
Competitors and Their Strengths and Weaknesses. 11
IV. Objectives 13
Sales Objectives 13
Profit Objectives 13
Customer Objectives 14
V. Marketing Strategy 14
Product Strategy 14
Pricing Strategy 14
Distribution Strategy 15
VI Promotional Strategy Action Programs 15
VII. Profit and Loss Statement 16
VIII Controls 16
IX. Conclusion 17
X. Bibliography: 18
I. Executive Summary
Microsoft, the leading manufacturer of personal computer software with its windows based operating systems and application software, has decided to expand its influence beyond windows into the Linux freeware operating system world. The means for entry into this rapidly growing segment of the server operating system market is through a takeover of the Red Hat Linux Company. Currently Microsoft Corporation now owns 51% of the stock for Red Hat Linux. This expansion directly into the Linux arena will provide Microsoft with the ability to attack competitors in the network server market with the Windows NT and Windows 2000 operating systems on one flank and with the extremely stable Linux operating system on the other flank. Microsoft expects to use this one-two punch to significantly gain market share in the server market and to shape the future of business LANs, WANs and the internet. Additionally, Microsoft expects to gain a controlling market share of the Linux office application suite wit...
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...group.com/itw/…=45!xrn_15_0_A55660337?sw_aep=unlv_main
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Red Hat to Acquire E-Commerce Software Provider Hell's Kitchen Systems, Inc. (January 5, 2000). Rhat.com [Online] Available: http://www.redhat.com/about/2000/press_HKS.html
I was very interested in computers and technology as a child, both playing games and building fake parts for them. Still in elementary school, I was fascinated by these computing machines, spending hours on end working with DOS to satisfy my curiosity. Around my middle school years, Windows became graphical, and I found interest in even more computer games with even greater experiences and capabilities. Windows was the dominant operating system at the time, but I was soon to find there was a whole different world out there of operating systems. While out on vacation in Washington, DC, my Dad and I were able to meet with the local Tech Fanatics group, HackDC. It was here where I discovered Linux. Linux, an alternative to Windows, immediately grabbed my attention when I saw it in use. It appeared to me as something that only the extreme computer users even heard of. Upon my return home,
Microsoft was once a small software business ran by a young Bill Gates in a tiny
In 1994, Jim Donehey was brought in to update Capital One’s IT system. His solution was to replace their aging mainframe computers with an object-based system, but this technology had never been used on such a large scale. In contrast, two-thirds of Capital One’s competitors outsourced their IT functions. Within 5 years the company had the world’s largest Oracle database with 23 terabytes of data – winning them the Gartner Group’s Excellence in Technology Award.
America's century-old antitrust law is increasingly irrelevant to our current worldwide information technology market. This law is outdated, in accordance to the modern Microsoft situation, because in the past there wasn't technology as there is now. Recently the government has been accusing Microsoft as being a monopoly. "Techno-Optimists" claim that "efforts by government to promote competition by restraining high-tech firms that acquire market power will only stifle competition." Some analysts disagree. They concede that dynamic technology makes it tough to sustain market power. Still, consumers will want compatible equipment, which will lead them to buy whatever product other consumers are using, even if the product is inferior.
---. “Sharing the Software.” Digital Chameleon: The Rise of Computer Emulation. 13 Sep. 1999. Zophar’s Domain. 25 Oct. 2000.
A second barrier to entry is switching costs. When IBM and Apple were the only computer systems to choose from people had to make a choice. When you went to buy one system then you had to buy all the software that went along with that system. Ultimately, IBM became the mor...
Nowadays, most of the web, email, database and fileservers are Linux servers. Linux is a UNIX system which implies that it has solid compatibility, stability and security features. Linux is used for the mentioned environments because these services require high security. Further, an increase of attacks on these servers can be observed. Additionally, the methods to prevent intrusions on Linux machines are insufficient. Further, the analysis of incidents on Linux systems are not considered appropriately (Choi, Savoldi, Gubian, Lee, & Lee, 2008). It can also be observed that a lot of investigators do not have experience with Linux forensics (Altheide, 2004).
Open source vs. proprietary: Both have advantages By John Carroll, Special to ZDNet, Retrieved May 19, 2008 from [http://www.zdnet.com.au/news/software/0,2000061733,39148762,00.htm]
As the internet is becoming faster and faster, an operating system (OS) is needed to manage the data in computers. An Operating system can be considered to be a set of programed codes that are created to control hardware such as computers. In 1985 Windows was established as an operating system and a year earlier Mac OS was established, and they have dominated the market of the computer programs since that time. Although, many companies have provided other operating systems, most users still prefer Mac as the most secured system and windows as it provides more multiple functions. This essay will demonstrate the differences between windows
"Microsoft Corporation, is a multinational computer technology corporation with global annual revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market. Microsoft possesses footholds in other markets, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets both computer hardware products such as the Microsoft mouse as well as home entertainment products such as the Xbox, Xbox 360 and MSN TV" ("Microsoft").
Microsoft, one of the largest corporations in the world today, employs over 93,000 people and is a public, multinational company that manufactures, licenses, and supports a wide range of software products for computers and is most widely known for its Microsoft Windows operating system. Microsoft not only markets computer hardware products such as the Microsoft mouse and the Microsoft Natural keyboard, but it also manufactures and sells home entertainment products including, the Xbox, Xbox 360, and Zune. It also holds assets in other markets including the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia.
I believe that Microsoft has the best intensions for society, because they are constantly developing the software market into a more competitive and challenging industry. Microsoft’s success as a company is partly due to its commitment to making the best product possible and strategic business practices. The first reason Microsoft is not a monopoly is because of the standardized quality of its OS. Second is the intelligent business practices Microsoft has engaged in through many of its business partners. The legal issues of the alleged antitrust accusations from the department of justice are just totally overrated.
Then came Linus Benedict Torvalds. At the time he was a sophomore majoring in Computer Science at the University of Helsinki, his hobby also included computer programming. At 21 he found himself spending most of his time toying with computer systems, trying to see what he could do in order to push their limits and increase their functionality. The key missing in his tests was an operating system that had the flexibility craved for by professionals. MINIX was available, though it was still just a stu...
The reason for this rapid adoption is Linux’s unique ability to provide powerful functionality, security, compatibility, customization at a more cost-effective price than proprietary vendors. In its inception, there were many perceived concerns to utilizing Linux in a corporate infrastructure.
This case traces the strategic decisions of Intel Corporation which defined its evolution from being a start-up developer of semiconductor memory chips in 1968 to being the industry leader of microprocessors in 1997 when it ranked amongst the top five American companies and had stock market valuation of USD 113 billion.