Summary
distinctive to other technological companies. In its 42 years of operations it has grown substantially
and has prospered to be one of the biggest and most successful Corporation Globally. Microsoft
has turned the PC industry upside down by making the Microsoft OS available to every desktop
and we have recommended a five-year plan and strategies that it should follow, so that Microsoft
can Sustain in the market and keep its dominance in the future as well.
We recommended different types of plans from corporate to functional level strategy and from
TITLE PAGE
Internal environment 1
External environment 3
SWOT analysis 8
Companys business 10
Distinctive competencies 11
Competitor analysis 14
Financial performance 15
Competitive advantage 17
Recommendations 21
Technology strategy 26
Global strategy 31
sells computer software, consumer electronics and personal computers and services (Microsoft,
2016). Its best known software products are the Microsoft Windows line of operating
systems, Microsoft Office suite, and Internet Explorer and Edge web browsers.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975 (Microsoft, 2016). It rose to
dominate the personal computer operating system market with MS-DOS in the mid-1980s,
followed by Microsoft Windows. Since the 1990s, it has increasingly diversified from
the operating system market and has made a number of corporate acquisitions. The company
produces a wide range of software for desktops and servers, and is active in areas including Internet
search, the video game industry, the digital services market, and mobile phones. The current CEO
Internal Environment
Tangible resources:
o Operating Income: Microsoft reports operating income of over $20 billion in 2016
(Microsoft, 2016). It ranks at #25 in the Fortune 500 US list (Fortune, 2016).
good financial standing, because their liquid assets significantly outnumber their short-
term liabilities.
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o Cash Reserves: Microsoft has approximately $113 billion in cash and short-term
o Property and Equipment: Microsoft reports property and equipment of over $18 billion
retailers, and online vendors all over the world, and a huge, loyal customer base worldwide.
o Location and Size: Microsoft owns and leases a massive 45 million square feet of real
Intangible resources:
o Brand Value: Microsofts primary intangible resource lies in its brand value. In fact,
Microsoft has been ranked at three on Forbes list of the worlds most valuable brands, just
after Apple and Google, with a brand value of over $75 billion (Forbes, 2016).
Harris Poll lists Microsoft at #20 on their annual reputation ranking in the US (The Harris
Poll, 2016).
the total value of their net intangible assets and goodwill was approximately $21 billion
(Microsoft, 2016).
o Research and Development: Microsoft is the biggest spender on R&D among software
and internet companies (Fortune, 2014). The company has spent around $11.99 billion on
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Capabilities
its business sectors operate independently but report to a central command. Facilities, retail,
research and development, networking and operations, and support are some of the main
communicate within and between departments, and also with the top management
(Reference.com, n.d.).
i. Accountability
offers merit pay, bonuses, and stock options to the top performers. An important aspect of
External Environment
Political environment: Political steadiness can have a positive impact on the business as it
is helpful to increase investments. For automation, support from Government is very much needed
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because it will include large-scale purchase from Governmental organizations which will boost up
computer technology sales. Worldwide trade can be beneficial for increasing global sales but it
Economic environment: Stable condition of economy is very helpful for the business as it has
a significant impact on the sales revenues of Microsoft. In high-growth developing countries, the
growth rate of Microsofts sales revenue is also high. And again increasing disposable income of
middle-class has a positive impact on the sales of the company as middle-class customers are a
vital source of Microsofts revenues. Considerable economy boosts the sales revenues.
Social environment: Cultural variety can be an important issue for Microsoft to deal with as it
can be both an opportunity and a threat too because if the company does only target the largest
cultural groups, they cannot satisfy all the customer groups. Dealing with customers is another
important factor. By maintaining high quality customer service; the company can increase their
Technological environment: People are now-a-days adapting mobile technology fast. Microsoft
can take it as an opportunity and work more with improving its mobile devices. Technological
advancement also brings high competition. People are getting used to online transactions.
Microsoft needs to provide products which will support safe online business dealing out. Another
negative impact of this online transaction processing is that it can increase cybercrime attacks.
Increasing automation in businesses can have a very positive impact on the sales revenues as it
beneficial to the company as it will increase its sustainability. Using recycled materials for its
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computer hardware and software products and packaging purposes can be useful. This type of
initiatives will have a positive impact as it will also focus on the societys sustainability too.
Legal environment: For protecting software piracy, the improving and implementation of patent
laws is very helpful for Microsoft as it will have a positive impact on the companys sales revenues.
By practicing rules for electronic waste disposal Microsoft can facilitate effective waste dumping
Industry Analysis
Microsoft refers to the technology industry. Sales for the global software and service industry
stood at $2, 3300 billion in 2009. The global markets valuation is expected to rise at a CAGR of
27.90% between 2015 and 2022 and increase from US$23.8 billion in 2014 to US$164.3 billion
by the end of 2022.Though Microsoft has experienced decelerating growth in the recent years,
over the next five years, the analysts that follow this company are expecting it to grow earnings at
an average annual rate of 9.19%. This year, analysts are forecasting earnings increase of 6.41%
over last year. Analysts expect earnings growth next year of 10.32% over this year's forecasted
earnings (Research).
o Threat of new entrants: The threat of new entrants for Microsoft is very low or
moderate as cost of setting up with a new company in technology industry is high. New
company cannot compete with already established company like Microsoft and Apple as
they already have a positive brand image with strong customer loyalty. In addition,
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Microsoft is enjoying a monopoly with capturing over 90% of marketplace with operating
o Bargaining power of suppliers: The most important suppliers for the industry are PC
hardware mechanism suppliers plus software tool suppliers. The suppliers are moderate in
size and their overall supply is also moderate but plays an important role in the industry.
They can influence Microsofts business moderately with possible alteration by changing
their price strategy. They could influence in a large manner if overall supply would have
decreased. Principle hardware tools are mainly supplied by Intel, a core supplier. The
though Microsoft had to suffer earlier when Apples software proved them as better. To
maintain their position in software market, Microsoft always positioned itself as providing
products at lower price than Apple. So threats of substitute products are low moderate.
o Bargaining power of buyers: Buyers are mainly firms, individual clients and government
organizations. The buying authority of these customers is low or moderate because there
are few options available, little obtainable substitutes and switching costs are high. In
o Competitive rivalry: High switching cost and high exit barriers make the competition
stronger. That results price cuts, innovation, promotion, product development etc. A
enjoying competitive advantage with economies of scale and strong brand image and
strong customer loyalty, they continue to maintain and make the competition stronger in
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the high-end market from the diversification and other fields. High switching expenditure,
variety of firms and assertiveness of firms (in terms of innovation and promotion) create
competition stronger.
Industry life cycle analysis: Software industry is in growth stage. It refers to the technology
sector. The software industry is expected to be the fastest growing industry with expected growth
of 7.1%, followed by information technology (or IT) consulting and systems integration services
at 6.6% in the IT space (Forrester, 2014). Worldwide software revenue stood at $407.3 billion,
compared to $388.5 billion in 2012, registering a 4.8% increase (Gartner, 2013). Microsoft
(MSFT) continues to be the market leader in the segment and holds 16% market share.
Macro environment influence on technology industry: Political issue can affect the industry.
Political stability, government support can be opportunities for the industry. On the other hand,
political instability, govt. policy barriers and rules can affect the industry too. Increasing
international trade agreements can both be threat and opportunity. Considerable economic stability
and increasing middle class disposable income can boost the sales. Rapid adoption of mobile
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SWOT Analysis
Worldwide Reach
STRENGTHS Brand Reputation
Leading OS in the PC market
Strengths:
the best reach compared to other OS manufacturing companies in the world. Not only does
it have the acceptance from the consumers, but Windows OS also gets co-branded by
o Brand Reputation: Microsoft stands 7th in Forbes list of the most reputable businesses
in the world and 5th according to Inter-brand as the most reputed brand in the world with a
value of $57.8 million. This high brand reputation allows Microsoft to hold a majority of
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o Leading OS in the PC market: Although sometimes people criticize the Windows
OS for various flaws, majority of the PC users all over the world use different versions of
Weaknesses:
o Security flaws in Windows OS: When it comes to virus attacks, Windows OS is the
most vulnerable compared to other OS in the market. And there have been a lot of issues
o Slow to innovate: Despite all the new versions of windows over the years there has not
been any significant change in the upgrades. Microsoft has made a conscious decision to
do pure research as well as applied research, which necessarily means that research dollars
Opportunities:
o Cloud based service: With the recent development in mobile internet there is a huge
demand cloud based services all over the world. While having One Drive already for that
purpose, Microsoft could expand by providing more range of services which can
o Growth through acquisition: Since the PC market for OS has reached a saturation point it
has very little space for organic growth. Therefore they follow a method to pursue inorganic
growth through acquisitions of small business in the industry which will bring in new
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Threats:
o Open Source software: Nowadays open source software is becoming more popular
in the market which can become an alternative for Microsofts Windows and other software
which are pretty expensive. This can reduce the market share of Microsoft.(Jurevicius,
2013)
o Lawsuits against Microsoft: Microsoft has already faced class-action lawsuit multiple
times in the past which claims violations of various rules and regulations from their part.
The most recent example is the lawsuits for the Windows 10 upgrade. And if Microsoft
continues to operate this way they might face a financial downfall in the future, since
o Mature PC market: In the age where smart phones have become a necessity, the market
of personal computers has reached a saturation stage. Therefore, it is now a more difficult
Companys Business
In current world Microsoft strives to serve their customers, people who require easy to use
operating system and software application for their personal computers and other smart devices.
These are the people who use internet complemented technologies for their day to day work.
Microsoft satisfies their customers by providing one of the most user friendly interfaces in terms
of operating systems and other application giving them a prominent experience of using
Microsofts products.
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Taking the need of their customers into consideration Microsoft takes varieties of approaches to
satisfy their needs. Voice of Customer and Partner Listening Systems and Programs enable us to
connect with our customers through research, social media, product support services, in-product
feedback mechanisms, and internal and external programs. These tools work to help us understand
your needs and create a better experience for them.(Micosoft Corporation, n.d.)
Distinctive Competencies
Wall Street Journal reporter Alan Murray (1998) declares flatly, Microsoft is a monopoly. He
also added which is a fact even in business today, Windows operating system has become almost
the sole entry point to cyberspace. Michael Miller, editor in chief of PC Magazine, supported
Alan Murray asserting that Microsoft has an effective monopoly on PC operating systems. He
[Jim Barksdale, head of Netscape] knows it, Bill [Gates] knows it, and all the senators [who
questioned Gates at a Senate hearing early 1988] know it. So do all of us who buy PCs.
There are several evidences that Microsoft has nearly monopolized the market of computer
operating system. The chart given bellow will definitely show how dominant Microsoft is in
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Total Market Share (%)
50
40
30 Total Market
20
Share (%)
10
0
(netmarketshare, 2017)
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From this chart above we see 91.42% of total market share of PC Operating System belongs to
Microsoft owned operating system Windows. So, near monopolistic market of Operating System
has become a distinctive competency for Microsoft. Its windows operating system has become the
It is obviously clear that Microsoft has become a dominant firm in the market of windows operating
systems by monopolizing the computer operating system market and maintaining its dominance
over the period of time despite of many allegations both from the government and the competitors.
On November 5, 1999, Judge Thomas Penfield Jackson issued findings of fact that were based on
o Microsoft harmed consumers through its use of its monopoly powers, and
Several settlements attempted by Microsoft failed miserably. Even if the federal antitrust case is
settled, there are still several antitrust actions pending against Microsoft.
Many people think that Microsoft has monopoly because of their biggest market share. But in
reality, it is not the sole reason. Besides being the most popular in the market of operating system,
Microsoft wields a lot of power over PC giants like HP, Dell, Lenovo and others. Though these
PC manufacturers also sell Linux machines, but in a very small number. And those machines do
not get their required popularity either. So, the manufacturers mostly depend on windows.
Another reason why Microsoft gained near monopoly in PC operating system is for their
copyrights of software. If anyone wants to compete with Microsoft they had to come up with
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operating system other than Microsoft which is a pretty hard nut to crack. And it is near impossible
to compete with the leadership of Microsoft in complementary products and software of Windows.
Competitor Analysis
most prominent technology companies including Apple, Google and IBM. In the area of operating
system, though Microsoft has gained monopoly, Mac and open sources such as Linux would be
the immediate competitors. These two operating systems have the most market share right after
Windows.
Impending Competitors: Microsoft has a kind of lock in PC operating system. But the PC
market has shrunk over the period of time and mobile market immerged. In the current scenario of
technology market mobile claims much bigger portion of the market share than the desktop/laptop
PC. In the consideration of the mobile market, servers and other embedded markets like cable
boxes and smart TVs, Windows is nowhere near in the competition. There is a good possibility
that Android will emerge as a PC operating system in future. There is already a recently launched
PC in the market called Pine 64 which runs android as operating system. Pine 64 is a single board
computer which is more powerful than Raspberry Pi 3 and capable of running Android 5*
(Bhartiya, 2016).
uses the preemptive alliance approach to place a stake in a new industry and immediately become
a player (Man, 2001). Microsoft itself has established as an invisible competitor by creating many
preemptive alliances. For example, alliance with Point Cash, a computer news and advertising
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company, enables it to integrate with Microsofts web browser into its product offering to counter
Netscape. Microsoft also faces threats from invisible competitors. There is always a high risk to
lose market share to other preemptive alliances and companies from different industry. That is why
Microsoft has created a huge network of interlocking relationships with industries worldwide. And
they have been successful many times in making these arrangements before Sun Microsystems,
Financial Performance
Ratios of Microsoft:
In the year 2016 net income was $16,798,000 thousand, in the year 2015 net income was
$12,193,000thousand and in the year 2014 the net income was at the peak which was
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$22,074,000thousand which indicates that Microsoft has maintained a stable profit in every year
P/E ratio: Here, the P/E ratio is close to average market ratio which is 20/25 times earnings
but the industry average is quite high so we can safely say that it is a value pal.
Net profit margin: Microsofts net profit margin is higher to its industry which indicates that it
is in fairly good position and it has a decent profit after tax ongoing.
ROE and ROA: ROE and ROA of Microsoft are better than industry average so it is safe to
ROI: Return on Investment is better than the Industry average which indicates that Microsofts
Sales Growth ratio: The sales growth of Microsoft is lower than the industry as Microsofts
main product is more on maturity so it is difficult for them to increase their growth rate.
Quick ratio: Microsoft has a quick ratio of 2.02 compare to the Industry average of 2.87 which
is not a big factor here as Microsoft has more than sufficient liquidity to cover the liabilities.
LT Debt to equity ratio: Microsoft has comparatively higher Long Term Debt to Equity ratio
which usually indicates that it is riskier than other companies but the difference is not that
significant so it shouldnt make a big impact on financially but still it is riskier than the industry
and it also shows that Microsoft is using more Leverage to finance its assets relative to its stock
value.
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Asset Turnover Ratio: Microsoft is using its assets more efficiently to generate sales as the
ratio is lower than the industry ratio. It also indicates that it has a better profit margin than other
companies.
Competitive Advantage
Microsoft has adapted numerous strategies to establish itself in the industry. The variety of these
strategies is dependent on their external and internal objectives. Here are a few major competitive
Human resources management: It has always been Microsofts pride to be praised for its
excellent recruitment procedure. Skilled engineers and other brilliant personnel from different
Microsoft leaves no stones unturned when it comes to contributing resources for their employee
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training program. The reason behind this enormous investment is their belief in creating proper
Customer retention: The main thrust behind Microsofts customer retention is their continuous
improvement in service and quality. Users of Microsofts product and services stick to Windows
Standardized services: One major advantage that Microsoft has been enjoying for years is
that majority of PC used by millions of users comes with Windows pre-installed and it makes
Huge investment in R&D: Entrance cost for new competitors are enormously high. And having
one of the best R&D facilities, though increases initial investment, can drastically drop per unit
cost which can allow Microsoft to reduce prices to the point where competitors wont be able to
make profit.
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Current Business Model
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Business model
Service
Management
Software Convenien
Skype and ce
Pr o bl em licensing
Solving
Windows OS
for pc and Microsoft
Quality smart phones One drive
Control Office 365
Research and
Development
Windows
Azure X b o x
Bing
Microsoft
Lumia Microsoft
mobiles Outlook
Game
Licensing
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Recommendations
o Microsoft does not have any viable position in the market of smart phones. Smart phones
and tablets are getting popularity rapidly. Microsofts windows on Nokia were not a
successful attempt. They can come up with upgraded version with solutions of the previous
problems with operating system. And make it more user friendly and providing different
o Microsofts R &D facility is one of the best in the industry. By using their R & D facilities
and with investments they can go for product differentiation with lower cost and can come
o Microsoft is vulnerable to cyber-attacks. Getting rid of this problem, they should ensure
safety by adding any unique feature to their OS. They can adjust built in extension in their
windows explorer so that virus cannot attack very easily. With the help of this extension
software will be downloaded through a filtering process and PC will not get affected by
virus.
o Microsoft can hire more independent distributors to sell their products to get more involved
o Microsoft can acquire some software and application developing companies to create or
develop applications suitable for windows operating system and which will help to operate
windows more easily. They can come up with applications which are more demanding
o As cloud-based services are becoming very demanding now-a-days. Microsoft can focus
more on using cloud based services to deliver its services to customers. They can include
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o Microsoft can create a buzz in the market by doing strategic alliance with cell phone
companies as smart phones and tablets are grabbing the market share. Through this they
can do rebranding of OS. They can make alliance with hardware companies to create
o Microsoft had faced class-action lawsuit multiple times that claims violation of anti-trust
laws. In this process their image got hampered in some ways. They can come up with some
CSR activities like using green products or environmental products and recycled materials
o To increase and maintain superior profitability Microsoft should target larger variety of
customers preference.
o They can make development in the process of outsourcing, motivating, giving benefits and
retaining employees so that they can be beneficial for the companys economic growth.
Microsoft is already pursuing a lot of corporate level strategies to increase their market share for
Windows. But based on Microsofts current position in the OS market there are still a few
corporate level strategies that can be followed which are somewhat in reliance of each other.
Strategic Alliance: The strategic alliance is already a widespread phenomenon for Windows
with corporate giants like Dell, HP, and Lenovo etc. These alliances exist only for personal
computers, especially laptops. Microsoft can carry out the similar strategy in the cell phone market,
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by introducing Windows OS for phone with more companies. So far their strategic ally in this case
has been Nokia which has not been so successful so far. The behind this fruitless venture was
mostly because of the lack of compatibility of various applications with Windows OS. By creating
strategic alliance with more cell phone companies by rebranding Windows would create a buzz in
the market. Also to be successful in this venture this has to rely on another strategy and that is
Backward vertical integration: Despite having one the best R&D facilities in the world
Microsoft could still use a different set of approach and acquire some software and application
developing companies. This would enable them to mitigate the very problem, which is lack of
availability of applications for Windows. Microsoft would be able to develop more applications
compatible for Windows which would make the OS more user-friendly and create a lot of demand
in the market. These acquisitions can also enable them to develop features or applications which
Taper integration: Taper integration, in case of Microsoft, can work better in terms of
independent distributor. Microsoft already has stores all over the world. However, what would
help more in competing in the market in the developing countries is by making the retail sector
dense. Emerging companies are either opening up new stores or giving their product to a particular
distributor very rapidly. While opening new stores can be problematic in terms of controlling the
operation, Microsoft can hire more independent distributors to sell their products. Again the
success of this approach will be dependent on the outcome of the previous two mentioned.
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Business level strategy
There are some business level strategies which Microsoft Corporation can implement to sustain
Strategy to support:
o One drawback of Windows OS is vulnerability to virus attacks. There are cases where
system has crashed as well. Microsoft OS should come up with a unique feature which
provides the customers a sense of relief that their PC is safe. So, providing more security
would make life easier for the end user of the OS which will support them in differentiating
their OS as well.
o Innovation has been lagging for Microsoft for quite a few times, it should be focused on
how it can make its interface more user friendly and cloud based service can help here
greatly. Cloud based service is getting more and more demanding so Microsoft has a good
o Microsofts main goal is to run Microsoft software in every PC so that everyone can use
Microsoft product. In order to do that, Microsoft can use a low pricing strategy that can
help them achieve their goal and it will help them to gain strategic lock-in position in the
o Microsoft has one of the best R&D facilities in the technological industry so they can use
their R&D and invest to create a value innovation and shift above the efficiency frontier
through greater differentiation with lower cost. As they are already enjoying economies of
scale, they can provide customers with more flexibility and range of other services to their
customers.
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o They can create an OS which will provide services to the disable people and thus they can
attract a new segment of market. As they have a great market reach, they can easily capture
the market and thus they can use focus differentiation as well.
o Microsoft has the ability to offer good benefits and services and they should utilize it more
effectively to help the customers solve their issues. They can do it via online services which
will add value to their customers. The more satisfied customers are, the more sustainable
o Microsoft should let other software or technological company use Microsoft platform so
that the threat for new entrants gets lower and later Microsoft can standardize the product
or service they offer and maintain liaison among the technologies and business groups.
To support corporate level and business level strategy Microsoft should generate inter-related
Marketing Strategy: Microsoft can adapt one strategy for their marketing where they can focus
on the customer feedback/suggestions to facilitate innovation. They should communicate with the
customers on a level which doesnt only provide feedback on the quality of the existing product
but also suggestions for products that will be launched in the future.
R & D Strategy: Microsofts R & D facility is one of the biggest in the world and they are
already working on some lucrative projects like Lightspace, OmniTouch, Kinput project all of
which focuses either on interactive 3D display on different surfaces or scanning objects. These
types of innovative devices should be available to end-users so that the users can replace their
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current handheld devices to new devices to experience the new taste and features. Also they should
formulate the method where they can bring customer into product development process. This
method should allow customers to recommend or even submit new designs and modifications of
the product which are available in the market or which are going to be released at a later date and
from there the best possible alternative(s) can be chosen to work on.
sync with its R&D strategy and that is they should transfer all the feedback data from the customers
over to the R&D department. In order to do that, their Information Management System should
also collaborate with the Marketing Department which will allow the feedbacks and suggestions
to be categorized.
Technology Strategy
Due to the emergence and high popularity of mobile and tablet devices, computer market has been
shrinking over the last few years and along with it, computer operating systems. Microsoft
Windows is facing huge competition from mobile operating systems, Android and iOS. So for the
next five years, Microsoft should focus on re-establishing itself as the industry standard and
Since Android is in the process of releasing computer operating systems in the future and there is
existing competition from Apples OS, Microsoft should implement these following strategies to
remain the industry standard in PC operating systems. Its latest Windows 10 was a big step
forward. But it has to come up with an advanced version of Windows which is perfectly compatible
with mobile and tablet devices along with computers to better compete in the market. Although
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Microsoft previously released Windows Mobile on Nokia devices, it failed because of many
reasons. In order to succeed next time, Microsoft has to come up with solutions to fix the OSs
previous issues and to make it more accessible, user-friendly, provide better selection of
applications, and more choice of Smartphones that are run by Windows OS. They can provide
services like file sharing and synchronization between computer and mobile devices, and other
innovative services.
The next strategy would be to create network effects. Microsoft has to provide customers with
more complementary products - a broad selection of applications, support systems, etc to further
strengthen their position and capture more market share. They should try to establish their next
Windows OS as a revolutionary and disruptive technology. This will help them in any format war
that might occur in the future. Their aim can be to replace Android as the killer application. An
advantage that Microsoft has in this regard is their research and development capacity. As
mentioned earlier, they invest huge sums of money on R&D and they have ample cash reserves,
giving them the financial flexibility to innovate and develop this technology.
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Revised Business Model
Microsoft office
solutions
Windows Software
Real time
Embedded and
Freeware troubleshooting
licensing
Windows OS
Microsoft
for PC and
Quality One drive
tablet Office 365
Control
Research and
Development
Explorer
Windows
phone X b o x
Distinctive
features and Microsoft
good enough Outlook
content Game
Licensing
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Change in Companys Governance
The governing body of Microsoft is its Board of Directors. Microsoft does not need to change its
current corporate governance to implement our recommended strategies. The reasons for this
o They try to align the interests of shareholders, directors, and management, and act in
o The existing governing body is familiar with how the management works.
o They have the resources and capabilities to execute the recommended strategies.
o Changing current governance may prove to be risky, as the new system of governance may
In order to achieve success over the organizational strategies, there are a couple of strategic control
In order to make the strategies, as mentioned in the previous parts, there has to be a monitoring
system for managers to ensure efficient inputs and output, which is just not limited to the products
but also the customer feedback and companys responses towards that feedback. For example, if
there is a technical issue regarding Windows OS and there are customer complaints incoming the
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responsibility of the managers would be to analyze how long it takes for the employee to respond
and how quickly the engineers can figure out a solution. Having a record of this performance can
Another thing which can help managers is that if they can evaluate their employee performance
and also motivate them, through various reward schemes if necessary, to perform well which will
eventually help bring efficiency to the organizational strategies. And this evaluation should also
can make that distributor work better in order to achieve give objectives and build long term
Just like the recommended strategies mentioned previously, the strategic control systems, to make
their implantation efficient, are also inter-dependent. And the manager has to make sure that they
The current organizational culture of Microsoft has the potential to implement our recommended
strategies. Under new CEO Satya Nadella Microsoft has adapted growth mindset which implies
bringing out best in people rather than creating smartest employees. Weve spent a lot of time on
culture, Kathleen Hogan, the companys executive vice president of human resources said, Of
course, there are a lot of other things that Ive been spending time on, but Id say probably the No.
1 thing with Satya is really talking and thinking deeply about what is the culture we aspire to have
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Before, Microsoft depended on network marketing which did not lead them to end users, but, now,
they are focusing more on visiting and listening to customers. The employees are also going
through mandatory diversity training to grow more adaptability with new culture. During an
interview with GeekWire Kathleen Hogan said, Theres been a lot more discussion around team
norms, and how we can create environments where we do hear from everybody. Its amazing, but
There is always a place for doubt and distrust on a corporation which can be very difficult to cope
with. What Microsoft is saying today about creating new organizational culture that can take time
more than people can think of, just because it is a long term process. No organization can change
their years old culture with a magic stick. But, we have already seen a few changes like Microsoft
focusing on Mobile and cloud computing, though strategy taken on mobile flopped again. But it
can be a good initiative to learn and come back with more consumer friendly innovations. CEO
Nadella recognized that the technology industry does not respect tradition it only respect
positive sign for implementing our recommended strategies including making more software and
as open source. Now it seems people are starting to put hope on Satya Nadellas vision for
Microsoft.
Global Strategy
Microsoft can put more importance in outsourcing operations as a global strategy to lower its cost
and increase its profit. They can outsource work force for internal actions, software improvement,
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testing etc. They also can outsource people from application developing companies to develop
Microsoft can get more global markets by profoundly encouraging free and open trade as open
trades show the way to economic expansion. Free trade and open market lead to worldwide wealth
and global growth. Global growth will increase competition and competition will make more
profitability and will bring economic growth. Microsoft can also take some initiatives to
Global diversity initiatives are very important to take care of the various cultures and environment
which will delight the customers. Microsoft should care more about taking global diversity
initiatives like employing diverse people, promoting computing studies in universities etc.
While establishing production line in different countries, Microsoft had to adapt with different
types of formalities, legal and social systems. In order to get rid of these problems, they can make
strategic alliances with local companies to do their work more successfully in the global market.
Microsoft should adapt a different price strategy for developing counties where the imitations of
Microsoft OS is all over the market. If the price is reasonable in those regions then end users will
There are some ethical value propositions which need to be followed by Microsoft in the business
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o Microsoft needs to follow centralized system where every department will be operating
their job properly but not interfere in another department. For example: R&D should focus
on their job and they should not interfere in any other department.
o Every department needs to be very efficient with their own department. They need to be
efficient with what they are doing and they need to response proficiently to the complaints
that they get. So every employee has to work with the same mindset so that they can be
o Employees need to be aware that efficient flow of information is there in the organization
because distorted information can hamper the smooth work flow of the whole organization.
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