issue 1 - Roland Berger

DOSSIER #01 The formula for growth
[Microsoft]
65
SUCCESS FROM MONOPOLY AND MARKETING
billion dollars (rounded) were held in cash reserves by Microsoft at the
end of November 2004. In recent years, the world’s largest software
company has seldom been the first to take advantage of new technologies
to open up a market, such as the Internet or new standard business
software. Nevertheless, strong marketing and a dominant
position in PC operating systems brought the company annual
average profit growth (EBITA) of 26.18 percent in the years between
1993 and 2003.
10-year
Sources: Roland Berger Strategy Consultants, Barron’s; Chart: Wallstreet Online
STOCK CHART
Microsoft / DOW JONES
2000%
1500%
1000%
500%
0%
1995 96 97 98 99 00 01 02 03 04
comparison against the Dow Jones Index
22
think: act