How Microsoft Is Killing Facebook (Meta) ? | Microsoft Secret Strategy | Business Case Study



 April 1975, when Microsoft started, No one thought that Microsoft will rule the world. Between 1975-85, with 40% market share, Microsoft was dominating whole world's PC market. When Apple was busy firing Steve Jobs, Microsoft was growing at 30% annual growth rate and cutting all the competition. Do you know what's more shocking? If you see today also, Microsoft is growing with 30% growth rate every year. The question is Without entering the mobile market and without dominating the hardware market, 


How and Why Microsoft is growing at this amazing growth rate? And most importantly, what are those powerful business lessons we can learn and implement in our business ? So the story starts in Mid 1970s When two companies were on a mission to change the world's computer market. In April 1975 started Microsoft and in April 1976 started Apple Computers. Microsoft by selling their MS Dos system to IBM and other manufacturers was dominating the software market. While Apple by selling Apple 1 and Apple 2 computer models was dominating the hardware market. Both businesses were growing amazingly. Both were at the top of their game. But in 1985, Apple fired its founder - Steve Jobs from Apple. Microsoft got an opportunity to dominate the whole market. Apple's share price was falling and it was 12 years for their new company - Next to take position in the market. And by seeing this, Windows launched their first operation system Windows 1. And due to lack of competition, they captured the whole market. But still there was a problem. Windows was a big brand in market but Windows was still not used for business or educational purposes. And due to this Microsoft knew their future was in danger. And then came 1995. From was the year from which everything was going to get changed for Microsoft. In 1995, Microsoft played a MASTERSTROKE. Microsoft finally launched - Windows95. But this was not like Microsoft Window's other versions. Windows95 was designed for business and educational purposes. And from here started Microsoft's Ecosystem. This ecosystem is so huge that you can't think of it. After 1995, Windows95 was used in every business and educational institute. 


And every time for update in computer system, they need to buy Windows CDs. And every time Microsoft used to make profit. But if you closely observe, then you will come to know that Microsoft is doing something that it will make Microsoft world's most powerful company. So the question is what Microsoft is doing? Many of us still think that Microsoft makes lots of profit from Windows. But interesting, profits from Windows are just 16% of their total revenue. Microsoft started from Windows but today their major revenue comes from - Azure Cloud and MS Office. But in the upcoming time, Microsoft is going to do something which is a great threat to Mark Zuckerburg's Metaverse. So the question is what's that thing? So understand this thing carefully. In Metaverse, Gaming is going to play a major role. Microsoft has its XBOX's gaming ecosystem, while Facebook has only FarmVille in gaming. It's not like Microsoft joined gaming recently. Microsoft is finding a way to rule gaming market for years. In 2014, Microsoft acquired Minecraft for 2.5 Billion Dollars. In 2020, they acquired Zenimax Online for 7.5 Billion Dollars. And finally, on 18 Jan 2022, Microsoft made their highest purchase by purchasing Activision for 68.7 Billion Dollars. I know you would be thinking - By acquiring all these companies, Minecraft, Call Of Duty, Fallout5, DOOM, Skyrim - acquiring all these games Microsoft will make them exclusive and people will leave PlayStation and shift to XBOX. But this is not the case. And if Microsoft will do so, it will lose half of its customers. Let me tell you Microsoft's planings are more advanced than this. So the answer is hidden in Microsoft's Gaming Pass. In 2017, Microsoft launched its XBOX Gaming Pass. Those who purchase this pass get a whole library of XBOX games. Here they can access many games for free.


 By acquiring all these companies Microsoft will sell its games everywhere. And Microsoft will do many games free for XBOX Gaming Pass users. And so people will become helpless to buy this Gaming Pass. And interestingly, if you are not a XBOX user then also you will be attached to Microsoft's ecosystem only. The question is WHY??? Facebook has Quest headsets through which they will take people into Metaverse. Microsoft is in software business for years. And Microsoft has powerful ecosystems like -MS Teams and MS Office. And so it's comparatively easier for them to enter people in Metaverse. B'coz they have many users who belong to working class as compared to Facebook. More than half of the people on Facebook, don't belong to the working class. And if there are working class people, then also Facebook will have tough time bringing people to the Metaverse for work. Why? B'coz Facebook has less experience than Microsoft. And also b'coz Facebook's brand equity is much different from Microsoft. People associate Microsoft with work, but people associate Facebook with Social Network. But you know what in reality Microsoft wants to be everywhere. And that's why they haven't locked themselves in hardware system. It's Mac or PC, XBOX or Playstation, school, college or business. -Microsoft wants to be everywhere. Let Facebook distribute Quest headsets in the market, but Metaverse's interactive part will always be controlled by Microsoft. Microsoft's stock grew with a rate of 360% in last 5 years. 


So if you want to be part of the growth of companies like Microsoft, you can invest through Vested. The Link is the Description. Most importantly, what are those powerful business lessons we can learn and implement in our business? 1) Downfalls are Opportunities in Disguise Steve Jobs getting fired from Apple and for Microsoft, removal of Steve Jobs from Apple was an opportunity for both of them. For Steve Jobs this opportunity was in the problem's disguise. If he wasn't fired, he won't make Next. And if he didn't made Next then he wouldn't return to Apple as CEO. And you couldn't see, the Apple which we know today. In life, every problem comes with an opportunity. The difference is, You see the Problem or Opportunity. 2) Being everywhere can be both Risky and Profitable. Except mobile market, Microsoft is in every tech space. Computers, Softwares, Gaming, Cloud everywhere. This can be dangerous b'coz when you operate in many domains, its hard for any company to manage all the things with focus.


If managed well then diversification is very profitable. This happened with Microsoft. This brings us to 3rd and most important business lesson 3) Never let Failure break you down It be Microsoft, Apple or Facebook - all these 3 companies experienced many failures. But none of these companies stopped. Microsoft's biggest failure was to buy Nokia and launching Windows phone. Apple's biggest failure was to launch Macintosh in 1983. And all know about Facebook's Cambridge Analytica data scandal. But today also these companies are still ruling. Failures are a part of your Journey. 


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