What features make a company great? Are they a good CEO, a business plan, or other, less obvious features?
Even though the fate of Microsoft as one company is still undecided, its business model is looked upon as one of the more favorable ones to appear in the last several years. And, the success of the company is derived from more than just the sweat of Bill Gates.
Here are three factors identified as strong predictors on making a company great:
- Controlling the Value Chain - top companies must be able to control the actions of their business partners and other relationships in order to succeed. Microsoft demonstrated this through the development of its Windows operating system.
- Dominant Market Share - no one would argue against this point as a key component of a long-term strategy. Microsoft still holds an almost 92 percent market share in operating systems. However, the theory of market share is that a company grows larger by continuing to sell more product than its competitors. Microsoft continued to build upon its operating system and other software before venturing into other areas.
- Technical Shift in Computing - this aspect of greatness refers to attentiveness to future trends. The next big trend in computing is expected to be storage and storage networking. While it's true that Microsoft was in the right place at the right time with the explosion of Windows versus the Apple's OS, the foresight by the company's leaders played a large role in helping build Microsoft's business by capitalizing on the trends at the time.