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By the time Microsoft released Windows 95, most of the competition had already self-destroyed in various ways. So they only had to btfo a few minor players like OS/2 and Mac, which was pretty easy for them. Linux obviously was only a nerd thing back then, so didn't even count.
Funny thing is, in the late 90's there was a big push in the Linux world for desktop systems to "take over the world" or some stupid shit. I suppose this was pushed by Red Hat and other corporate types. Real nerds don't need anything more than plain old *nix, and will find all the bloat from trying to copy Windows disgusting. Plus there were already more interesting desktop projects, like BeOS.
