In responding to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies. Please make sure that you cite and reference all your outside sources (including the article itself) properly, as per the Harvard Referencing System.

As a general matter, the profit and growth potential for a firm is a function of the profit and growth potential of the industry in which it participates. To illustrate this point, consider that Microsoft, started in 1975, reached a peak equity market valuation of over $500 billion in 2000, yet is currently worth just over $200 billion (September 2010). Applying the industry analytical factors discussed in the text, discuss those industry factors you think may have sustained Microsoft’s dramatic growth before 2001, and analyse those factors that have constrained its growth since then. (The Datamonitor 2010 Global Application Software Industry Profile provides useful industry information.)

 
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