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THE RISE OF LINUX – THE BATTLE

FOR THE OPERATING SYSTEM


MARKET
BY:
AASTHA TYAGI 20299, NANDINI SHARMA 20329,
NIKHIL BHASKAR 20330, TARUN RAMDEV 20356
AGENDA

• ABOUT MICROSOFT
• ABOUT LINUX
• POSTER’S FIVE FORCES
• FIVE FORCES IN THE OS MARKET
• MICROSOFT’S FUTURE AHEAD

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INTRODUCTION
MICROSOFT

Microsoft Windows, commonly referred to as Windows, is a


group of several proprietary graphical operating system families,
all of which are developed and marketed by Microsoft.  Active
Microsoft Windows families include Windows NT and Windows
IoT

It is a graphical operating system developed and published


by Microsoft.

Initial Release: November 20, 1985

Latest Release: September 1, 2021

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INTRODUCTION
LINUX

Linux is a family of open-source Unix-like operating


systems based on the Linux kernel, an operating system
kernel first released on September 17, 1991, by Linus
Torvalds. Linux is typically packaged in a Linux
distribution.

 Linux is open source software. The code used to create


Linux is free and available to the public to view, edit, and
—for users with the appropriate skills—to contribute to.

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PORTER’S FIVE
FORCES
Let’s Dive In

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BEFORE THE INTRODUCTION OF LINUX

Porter’s five force analysis

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• Capital Requirements The development costs were
Threats of New Entrants enormous for a new, widely available OS.

• Economies of scale: Microsoft Windows began to sell its


products all over the world.

• Product differentiation With the early success of Microsoft


Windows due to its higher quality of the firm's products, it
began foster customer loyalty.

• Access to distribution channels Distributors had been


benefited from the sale of Microsoft Windows, and it was
hard for them to change immediately.

• Government policy Windows was protected through


intellectual property rights.
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• Expected retaliation Windows had a strong position in the
market had been adopted in the entire market.
BARGAINING POWER OF BUYERS
• Buyer concentration Buyers" power were low,
• Threat of vertical integration A large number of
because of the limitation of OS—Microsoft Windows,
companies in related sectors (from chip-maker Intel
Apple Macintosh.
to software developers) developed products which
• Buyer switching costs Due to early adoption of
worked in combination with Windows, and thus it's
Windows in the entire market, the financial and
hard for OS companies to do vertical integration.
psychological switching costs were enormous.
• Buyer information Customer knew less about OS, for
• Product differentiation Windows has high product
it was still a new product after releasing to the public.
differentiation with advanced graphics with 16 colors
• Impact on quality/ performance Customers were less
and improved icons, accompanying the new release
likely to change Microsoft Windows, because most
Windows software.
software worked with its backing.
• International expansion Microsoft Windows began to
spread sell its products all over the world.
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Bargaining power of Substitute Rivalry
Suppliers
Microsoft had insignificant There were very few competing Microsoft had two main rivalries
bargaining power by the early or substitute products, such as before the introduction of Linux,
1990s. There are only several Macintosh OS or Unix OS. But they are Apple which provided
companies setting operation as I mentioned above, they Macintosh OS in 1984 and AT&T
systems. So their buyer didn't affect Microsoft, so they which operated Unix OS on PDP-
concentration is very high and are also very insignificant. 11 in 1971
therefore the bargaining power
of Microsoft is high against its
suppliers.

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AFTER THE INTRODUCTION OF LINUX

Porter’s five force analysis

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• Since the introduction of Linux, new firms can enter the
Threats of New Entrants
market with a low capital investment.

• Large firms and government departments tend to replace


windows with cheaper OS to save cost. And because of
their low switching cost easier to replace windows with
other OS than individuals

• Windows is not stable enough that it frequently crash


for no apparent reason. Meanwhile, as an open source,
allows technicians to amend certain parts of the program
or add new ones, so the upgrade can be very easy. And it
can be better and better.

• Microsoft has an open cloud computing platform which


has good compatibility and maneuverability. 11
BARGAINING POWER OF BUYERS

• Buyer concentration: The buyer power is higher after the introduction of Linux Because of adding up Linux, the
quantity of suppliers is increasing
• Buyer switching costs Microsoft has the low compatibility If you want to change a product, you must change all
products. The buyer switching costs are high. But for the company, they're lower by using Linux
• Price purchases: The main difference between Windows and Linux was that the source code of Windows was a
closely guarded secret, while Linux was open-source". So Microsoft is expensive. Linux is beneficial for buyers)
• Impact on quality: The safety of Linux is much higher than Microsoft. And it is also stable that can compare to
the expensive system like Microsoft

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Bargaining power of Substitute Rivalry
Suppliers
• The quantity of suppliers is Microsoft is Expensive so many Microsoft now has three main

small : For hardware: computer firms like IBM choose rivalries after the introduction of

Zhongying in China, it supplies Linux,  But still, rivals would never Linux

the disk and low-end products. be able to archive what Microsoft

For service: Aspect, it supplies company could provide. Therefore,

the platform of Communication based on the analysis, threat of

and speech substitute of service is minor issues

in Microsoft Company.
• The power of suppliers is low,
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too.
BARGAINING POWER OF BUYERS

• Buyer concentration: The buyer power is higher after the introduction of Linux Because of adding up Linux, the

quantity of suppliers is increasing

• Buyer switching costs Microsoft has the low compatibility If you want to change a product, you must change all

products. The buyer switching costs are high. But for the company, they're lower by using Linux

• Price purchases: The main difference between Windows and Linux was that the source code of Windows was a

closely guarded secret, while Linux was open-source". So Microsoft is expensive. Linux is beneficial for buyers)

• Impact on quality: The safety of Linux is much higher than Microsoft. And it is also stable that can compare to

the expensive system like Microsoft


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WHAT CAN MICROSOFT
DO TO COUNTERFEIT
LINUX? Strategies

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• Mobile First, Cloud First Mantra

• Cloud Computing platform that

supports Linux

• Windows Universal App Platform

• Low Cost Strategy

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CONCLUSION Microsoft company has currently dominating the software, operating

system and cloud computing. Currently, Microsoft use offensive

strategy, they are trying to provide high quality product and service in

order to gain control over buyer bargain power to a certain level.

Furthermore, with competition getting stronger, Microsoft decide to

pursed IS strategy in order to differentiate their product from their

rivals, such as Azure platform, Xbox and Operating system, they are

trying to be up-to-date with technology whenever is introduced.

Therefore, with respect to the name of the company, innovation and

IS strategy, they have secured and maintain the future business and

continue to be on top ahead of the competitors.


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THANK YOU

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