Microsoft

Even in times of economic uncertainty, software remains a significant component of the global economy. The drive for greater efficiency and the increasing globalization of business markets spurs much of the spending, as companies continue to invest in the hardware and software infrastructure that enables them to operate in increasingly competitive markets. The software industry has experienced significant consolidation of late. Enterprise application giant Oracle was responsible for two of the larger acquisitions, purchasing PeopleSoft ($10.3) and Siebel Systems ($5.9 billion) in recent years. Particularly vulnerable are smaller best-of-breed software providers that specialize within certain niches; unlike their larger brethren that provide broad suites that address a variety of functions throughout enterprises, best-of-breed providers have little to fall back on if growth stalls in their particular industry. IBM's enormous software holdings have largely been built with acquisitions. Mirroring past trends in maturing markets such as apparel and electronics manufacturing, an increasing number of software and IT services providers are outsourcing a significant portion of their operations to foreign countries. Software companies can hire developers in countries such as China, India, and Russia for a fraction of the domestic cost. The corporate scandals that shook financial markets around the turn of the century are also revitalizing the software industry. The Sarbanes-Oxley Act requires companies to provide real-time disclosure of events that might affect their financial performance and keep records of e-mails and instant messages exchanged between employees. The US Patriot Act determines that financial services companies must be able to effectively detect money laundering activities, and the Health Insurance Portability and Accountability Act requires health care companies to store e-mails in the same way they store medical records. Software providers are also embracing and developing new technologies, including a new class of applications loosely referred to as Web services. Designed from standardized building block components, Web services can theoretically be assembled in a variety of ways, allowing companies to develop business applications that function across a variety of software and hardware platforms. Another growing trend in the software industry was pushed by the open source movement. Perhaps best known as the driving force behind the Linux operating system, open source has become a counter-intuitive business model for companies that distribute their products for free, generating revenues from associated training and services.

Meijer

Meijer (pronounced "Meyer") is the green giant of retailing in the Midwest. The company operates more than 170 combination grocery and general merchandise stores; about half are in Michigan, while the rest are in Illinois, Indiana, Kentucky, and Ohio. Its huge stores (which average 200,000 to 250,000 sq. ft. each, or about the size of four regular grocery stores) stock about 120,000 items, including Meijer private-label products. Customers can choose from about 40 departments, including apparel, electronics, hardware, and toys. Most stores also sell gasoline, offer banking services, and have multiple in-store restaurants. Founder Hendrik Meijer opened his first store in 1934; the company is still family owned.RETURN