May 18, 2011

Microsoft’s Hamartia, its Windows Strategy

Microsoft’s Hamartia, its Windows strategy.


An old but interesting Microsoft article from Business Insider on Microsoft’s Windows strategy, why Microsoft instead of building what customers want, will keep milking its Windows franchise till the end.

Microsoft is forced to operate this way because of the huge profit margins it earns on Windows and Office -- at least 60%, and sometimes up to 80% on Windows.  Ballmer would be crazy -- and possibly legally liable to shareholders -- if he approved any strategy that knowingly cannibalized those two businesses. Insiders call it the "strategy tax," and it's been around for at least a decade.

And, Microsoft’s hamartia

Tragic figures in classical Greek drama often suffered from a condition called hamartia -- a fatal flaw that isn't necessarily their fault, but is impossible to overcome.