essay on microsoft company

Microsoft Essay

Introduction.

The contemporary business world is characterized by a high level of competition. Various individuals and groups have engaged in conducting business. This builds up the level of competition as businesses engage in the production of relatively the same goods and services.

This therefore calls for application of strategic measures to keep pace with the competitive market situation. For the sake of this assignment, I will give a critical analysis of Microsoft Company. Much emphasis will be given to aspects such as the company’s overview and the industry of its operation, the company’s major business lines and the company’s competitive strategy and market position. Finally, the company’s use of Information Technology for competitive advantage will be highlighted.

Description of the Company and the Industry in Which It Competes

Microsoft is a well known company. It was founded in 1975 by Bill Gates. The company came into being following combined ideas from Bill Gates and Paul Allen, individuals who had interest in computers and programming in particular. The company started as a small organization whose operations were only local. It was later that Bill Gates developed the idea of programming languages and tried some applications that became successful although initially faced with some challenges (Kumar, 2010).

It was in 1976 that the Microsoft Company was registered in Mexico City. The company picked so well and this enhanced its growth and development. It was not after long that the company was in a position to extend its operations, selling its products locally as well as internationally. The company grew day by day and developed more advanced and desirable programming languages such as FORTRAIN and COBOL (Kumar, 2010).

The growth of the company was accelerated by an increase of Personal Computers’ manufacturers in the market. This increased the demand for Microsoft products and hence the need for Microsoft Company to enhance its production strategies to meet the demand. It for instance started an office in Japan in 1978.

From this time there was emergence of new developments that put the company at a better position in the market. A major development was that of MS DOS, which paved way to other advanced programs like the windows. It was in the year 1982 that Microsoft Corporation changed its name to Microsoft Inc (Kumar, 2010).

Microsoft operates in the software industry. It provides a lot of products and services that are aimed at satisfying the needs of customers in the software industry. In addition to this, the company has diversified its operations in other fields in an effort to enhance its competitive advantage.

This includes Microsoft games which have gained considerable application among people. The industry in which Microsoft operates is highly competitive mainly because of the effects of technological developments making it a necessity to be extremely alert to capture and implement everything new in order to satisfy the ever changing demand of the market. The industry is also characterized by new entries as people and groups wish to be as successful as Microsoft Company (Kumar, 2010).

To deal with the competition, Microsoft has engaged in production of products that are of high quality. The company also engages in strategies that are geared towards improving the quality of its products every now and then to satisfy the changing demands of the market. This has been made possible through research and development programs. This is an effort that has bore positive fruits for example attraction of a lot of customers and maintaining their loyalty.

Description of the Company’s Major Business Lines

Microsoft is involved in provision of a wide range of products and services to its customers. The major line of business is however in the provision of software related products and services. The company is involved in the provision of servers, office, hardware, windows live, software, Microsoft store and mobile devices among others. Apart from being involved in provision of products, Microsoft has also invested a lot in services provision.

Some of the services include, Skype, Microsoft advertising and Microsoft Online services among others (Microsoft, 2011). The provision of these products and services has been the main source of profit to the company. This in turn helps in placing the company in a good position in the market as it is an indication of good performance, an aspect that is desired by all organizations as well as customers.

Generally, Microsoft have performed relatively well over the past years. This has led other companies to desire to utilize the company’s production strategies in an effort to excel in their business operations. This has greatly increased the level of competition in the industry thus necessitating that Microsoft engage in even more strategic measures.

A major threat is for example the Linux program which has gained a lot of favour from the customers. However, plans are underway to upgrade Microsoft’s products and enhance it services in order to maintain its competitiveness compared to other companies in the industry. This will be made possible through extensive research.

Description of the Company’s Competitive Strategy and Market Position

Different companies have different competitive strategies and thus they secure different market positions in the market. Microsoft is competitive enough in its industry of operation and it has secured a good position in the market. Various aspects have been attributed to it competitiveness. For instance, its management is a source of its competitive advantage.

There is quality leadership at Microsoft. Bill Gates is the company’s chairman while Steve Ballmer is the CEO. Election is usually fair. The share holders have the duty of electing the board of directors. The board of directors is then supposed to hire the presidents, vice-presidents, top executives, treasurer and the secretary. The workforce in Microsoft is very rich in terms of skills and knowledge, making the company to do well in its business operations both locally as well as internationally (Johnson, 2008).

Microsoft has a number of strengths, which have significantly contributed to the company’s success. To begin with, the company has a broad global brand. The company has the largest software developer which has a good reputation all over the world. It has a big customer base which is located all over the world. All the products in the Windows line are successful. This has significantly contributed to the company’s success.

The company’s strongly developed brand has put it in a position where it is able to cultivate customer loyalty all over the world. Its customers are enthusiastic and act as advocates who always use the company’s products. Therefore, the company has managed to retain its existing customers as well as attracting more. This has contributed to the tremendous growth of the company.

Microsoft’s competitive strategy also involves the location of its premises or offices. Microsoft has offices located in different parts around the world. These offices are strategically situated in strategic positions. This has ensured that the company’s products are trendily available to all the customers across the world. For instance, the company has offices in Korea, Europe, China and Germany. This has promoted the availability of its products throughout the world avoiding unnecessary shortages.

Diversification of the company’s operations has also enhanced its competitiveness. For instance, the company has recently ventured in other areas like game design and developing. This provides a wide range of opportunities to the company.

The company has managed to provide free emails and news to its customers. In addition, it has managed to develop software that is very useful in organizing business spreadsheets and data. This comes at a time when the demand for such software has risen with increased need for efficiency in the contemporary business world.

The company’s market position can be understood by looking at its financial status. As already noted, Microsoft has been in the market for a long time. Since its development, the company has recorded good performance. Earlier this year, the company closed its fiscal year in optimistic results.

For the fourth quarter which ended in June 2011, the company’s revenue rose to $ 17.37 billion (Betanews, 2011). This was an eight percent increase over the last one year. Meanwhile, the operating income hit a level of $ 6.17 billion. During this quarter, the company recorded a profit of $ 5.87 billion (Betanews, 2011).

The success has not been attributed to a single aspect but rather a combination of factors. The strengths and opportunities are a source of the company’s competitive advantage and good position in the market. For example a strong brand that is well known all over the world. This has enhanced the level of sales and hence increased productivity and profitability.

Despite the fact that Microsoft Company has got considerable strengths and opportunities, it is not without some weaknesses and threats. Some of the weaknesses and threats that face Microsoft include; compatibility issues involved in the company’s products. For instance, most of its products are not effectively compatible with many hardware and software produced by other companies.

This may discourage customers from buying the company’s products due to the inefficiencies involved. Another weakness of the company is that it has not managed to develop an effective client and service support in the internet. This denies its customers important services in case problems and bugs occur. This threatens the integrity that the company’s products are perceived by its customers.

Competitors are a threat to the Microsoft Company. Many companies have engaged in the business of provision of software and other computer related services. This therefore necessitates that Microsoft Company establish and implement strategic measures aimed at maintaining its competitiveness to avoid losing its customers to the competitors. All in all, it is evident that the company has tried to overcome the threats and weaknesses through the reinforcement of their strengths and opportunities.

Use of Information Technology for Competitive Advantage

Information technology is a resourceful tool in an organization. It has been used by various organizations to secure a large share in the competitive market.

Effective utilization and implementation of information technology enables an organization and the workforce to be reliable in provision of services to the consumers. This is because it enhances efficiency, effectiveness and economy, an aspect that is extremely crucial in the achievement of high levels of productivity and profitability.

Microsoft Company has recognized information technology as a strategic asset and thus, it incorporates it in almost all its practices and processes. One area in which information technology has found application in the company is the accounting section.

The company has recognized that information technology can help in solving the problems that were associated with the traditional method of accounting. Information technology has also been used as a strategic communication tool. This involves communication services such as IP telephony, Microsoft Live Communication Server (LCS) and other Microsoft’s telecommunications infrastructure.

Some of the information technology related issues in Microsoft include; Business Application Support, clients services, messaging services, enterprise services, global technology services, corporate security among others (Rasmus, 2008). Microsoft is one of the leading companies that have achieved success through utilization of information technology including advertisement and reaching out clients and suppliers.

From the above discussion, it is evident that Microsoft Company has performed well over the past and has managed to secure a competitive market position. Its success is attributed to a variety of factors for instance a strong management body, an established brand name, strong and experienced workforce and utilization of information technology among others. Although it has some weaknesses and it faces some threats, it has been able to overcome this and its financial performance has been excellent over the past.

Reference List

Betanews. (2011). Microsoft . Web.

Johnson, N. (2008). Microsoft Adds Record Number of Employees, Rules Out Acquisitions . Web.

Kumar. (2010). An overview of Microsoft and History of Windows . Web.

Microsoft. (2011). Top Products . Web.

Rasmus, W.D. (2008). Building Strategic Advantage through IT. Microsoft Business Insights.

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Microsoft Corporation

Introduction.

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Analysis of Historical Development and Current State of Microsoft Corporation

Firstly, the success of the company in many cases is dependent on its leader. Therefore, in order to realize why Microsoft Corporation occupies the leading position in the world, it is necessary to analyze the steps that the leader has taken in the course of historical development of the company. Talking about Microsoft Corporation, the company’s leader is Bill Gates who is the greatest entrepreneur of the 21st century. The first step he has taken is determination. In 1975, Bill left Harvard and together with his friend Paul Allen founded Microsoft. They were not afraid of future difficulties because their goal was clearly defined, namely to develop software for the newly emerged PC market (Clark & Salisbury, 2006, p. 920). The second step is the opportunity to catch the chance. With the introduction of the first PCs by IBM in 1980, Microsoft did everything possible to develop an operating system for them. The invention of DOS helped Microsoft not only to achieve this objective but also to become the most popular standard for PCs in the world (Riper, 2011, p. 308). The third stage is fighting with competitors. In 1983, to be in the same league with Apple Macintosh, which sported a graphical user interface, Microsoft created Internet Explorer and version 1.0 of Windows operating system. The last stage is constant improvement. To adjust to the changing needs of the society, Microsoft provided users with new updated versions of Windows operating system. For example, Windows 95, introduced in 1995, was a radical departure from the previous as its principal innovation was 32-bit memory addressing with protected memory and independence from MS-DOS (Ritchie, 2003, p. 279).

Nowadays the majority of people define Microsoft Corporation as the leading company in the field of software. Almost every person has in his or her PC such Microsoft applications as Internet Explorer, Media Player, and MS-Office Suite consisting of Word, Excel, Power Point, Outlook, and Access. Almost all Microsoft products are complementary to a member of the Windows family of operating systems for personal computers and servers (Economides, 2003, p. 3).

Secondly, one can reveal the present position of Microsoft Corporation on the worldwide market with the help of analyzing concrete case studies. The first case study shows that Microsoft helps business companies to be successful. According to it, Raritan Bay Federal Credit Union upgraded its Windows XP PCs to mobile PCs running the Windows 8 operating system so that it can offer modern financial services (Microsoft Case Studies, 2013). With the help of the use of Windows 8-based mobile computers, RBFCU can serve customers more promptly, calculate and post interest rates faster, and enables employees to work in different conditions (Microsoft Case Studies, 2013). The second case study proves that Microsoft is helpful for people with special needs. At the Abu Dhabi Center for Autism, Microsoft through its assistive technology device the DynaVox Maestro, built on the Windows 7, helps students to communicate, interact with teachers and school peers, develop language skills, and successfully function in the society (Microsoft Case Studies, 2011).

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Finally, it is difficult to imagine what Microsoft will prepare for its users in the nearest future. Nowadays people have the possibility to use Windows on their mobile phones. Thus, it is possible that in a few years, Microsoft managers will provide users with penetration of Microsoft in almost every sphere of their life. For example, cars will be equipped with special small computers, based on Windows, and toys for kids will be running with the help of Microsoft applications. Thus, one might formulate the motto of changes in such a way Microsoft is everywhere.

Microsoft Corporation is a leading software manufacturer in the modern world. One can analyze the history of its development from the point of view of steps that the company’s leader Bill Gates has taken on the way to its success. They are as follows: determination to open the new company, the opportunity to seize the chance proposed by IBM, fighting with competitors, and constant improvement. With the help of regarded case studies with Raritan Bay Federal Credit Union and the Abu Dhabi Center for Autism, one can indicate such benefits of Microsoft as strong leadership and a wide range of productions, adjusted to the changing needs of the modern world. However, the biggest disadvantage of Microsoft is illegal and unethical monopolization of power. It does not give the opportunity to reveal the potential of other smaller companies. It is difficult to predict the future of Microsoft Corporation. Nevertheless, it is feasible that Microsoft will penetrate into different spheres of life of its users from cars to toys in order to make the life of people easier and extend its influence.

• Bove, T. (2005). Just say no to Microsoft: How to ditch Microsoft and why it’s not as hard as you think. San Francisco, CA: No Starch Press.
• Chen, B. (2011). Always on: How the iPhone unlocked the anything – anytime – anywhere future and locked us in. Cambridge, MA: Da Capo Press.
• Clark, C. E., & Salisbury J. N. (2006). The enduring vision: A history of the American people. Boston, MA: Cengage Learning.
• Economides, N. (2003). The Microsoft antitrust case: A case study for MBA students. New York, NY: Stern School of Business.
• Microsoft Case Studies. (2011, April 11). Abu Dhabi center for autism. Retrieved from  click here
• Microsoft Case Studies. (2013, December 11). Raritan bay federal credit union.
• Riper, A. (2011). A Biographical Encyclopedia of Scientists and Inventors in American Film and TV since 1930. New York, NY: Scarecrow Press.
• Ritchie, C. (2003). Operating systems incorporating UNIX and Windows. London, UK: Cengage Learning.

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How Microsoft Became Innovative Again

• Behnam Tabrizi

Inside the cultural turnaround that helped the tech giant think like a startup.

How did Microsoft revive its culture of innovation? For years, the company has been written off for playing defense on its position in the tech world. But, as signaled by its partnership with OpenAI and its challenge to Google’s search supremacy, it has gone back on the offense. The about face was, at its core, a cultural shift, driven by CEO Satya Nadella. He drove this by inviting an existential moment when he stepped into the job, reconsidering the company’s purpose. Then, he laid out strategic changes that would enable the company to think more like a startup, and made business decisions that committed the company to this new direction.

For years now, observers of tech have written off Microsoft as a 20th-century phenomenon, fat and happy from its Windows monopoly. The tech giant hadn’t had a breakthrough innovation in decades. It was rich enough to be a fast follower, but too big and bureaucratic to lead in any market. Jeff Bezos was known to gesture east and admonish his Amazon colleagues not to become complacent like their Seattle neighbor.

• BT Behnam Tabrizi has been teaching “Leading Organizational Transformation” at Stanford University’s Department of Management Science and Engineering and executive programs for more than 25 years. An expert in organizational and leadership transformation, he has helped thousands of CEOs and leaders plan, mobilize, and implement innovative transformational initiatives. He has written ten books, most recently  Going on Offense : A Leader’s Playbook for Perpetual Innovation  (IdeaPress Publishing, August 2023). TabriziBehnam

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Essay: Microsoft Corporation Essay

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Microsoft Corporation Essay

Microsoft Corporation: A Research Project

Since its inception in 1975 by co founders Bill Gates and Paul Allen, Microsoft Corporation have steadily and rapidly become one of the world’s most successful companies, with brands amongst the most global. It now commands a position among the top worldwide corporations, ranking number three in the FT Global 500while enjoying revenues in excess of $36bn.

This essay seeks to provide an overview and history of the company, while undertaking a succinct analysis of its business successes. The reasons for this success of the company shall be explored, and the prospects for continued future prosperity will also be assessed.

Introduction and History

Microsoft, a public US company trading shares on the NASDAQ stock exchange in New York, is active globally, with offices in over seventy countries. For an overview on Microsoft figures, see Appendix A. Originally set up to make operating systems for the Altair 8800 system, the company has since produced industry benchmarks in the market, first with MS-DOS in the 1980s, and with Windows in the 1990s.

By dominating this market with a near total monopoly on the world’s home and business PCs, it was in a position to develop software applications to complement and support its product range. The most successful examples of these include Microsoft Office, a clutch of desktop publishing applications, and more recently the online integrated programmes and services of MSN.

Microsoft and their Markets

According to their website, Microsoft loosely define their three core markets as:

• Entertainment
• Platform Products & Services

The development and subsequent strength of the brand has revolved around specialised marketing to each of its target audiences. Fill (2002) identifies the company’s overall marketing strategy as taking a radical new approach to the needs of the market and break away from the way in which brands in the sector are normally perceived. Although Microsoft’s core markets now appear to be in maturity, it initially sought to build presence in these markets via distinct product positioning which set it apart from its competitors. The strategy is evidently a success, as applications such as Office and Internet Explorer rapidly became benchmarks.

Microsoft’s website offers a good indication of how the company very clearly segments its markets. Business, for instance, is split into areas covering all aspects of industry (education, finance, retail etc.) while home markets concentrate on education, entertainment and utility segments.

Within its business market, Microsoft offers integrated applications tailored to specific industries. It aims to cover all business technology needs over two distinct areas: business solutions such as supply chain management and customer relationship management, Windows Server System, covering network and hardware management.

On a more micro level, the company aim to tailor its services to customers via its Certified Partners scheme. Using a worldwide network of regional business units and individual professionals, it can be sure that its customers are receiving service from people who know the industry or are more familiar with local business issues. Functions performed in this regard include what its website refers to as add-in products to build on standard functionality to meet industry-specific and company-specific needs. Such personalised service is something often found lacking in large multinational organisations that often use a one size fits all approach to whole territories. The company’s contact with its customers extends as far as individual training and certification on how to use its software.

Using this multi-functional approach to business solutions, the company is able to frequently interact with its business markets, helping consumers to believe the company is marketing directly to their individual needs. East (1997) highlights the importance of retention in durable markets (i.e. one off or long lasting purchases). He argues that the cost of losing customers in such markets are high as setting-up costs often include higher overheads associated with the purchase. Microsoft appears to have been very successful in retaining its customers, due in part to convenience or the overall high cost of switching. It can be assumed that the interaction the company appears to have with customers creates a reinforcement effect, which will increase a customer’s propensity to remain loyal to the company in future purchases, defined by East (1997) as learned reinforcement.

Using a combination of strategic partnerships with PC manufacturers, as identified in their 2004 annual report, proactive marketing and the strategies discussed below, Microsoft has managed to build and maintain a near complete monopoly in its core markets.

Understanding and marketing to the target audience

According to their website, Microsoft Corporation would define their business position as the worldwide leader in software, services and solutions that help people and businesses realize their full potential. The company’s success in adapting to changing market conditions and demands represents perhaps one of the key reasons for their continued success. In addition, it is their ability to exploit its strengths which help it to maintain its position, a point which will be explored in greater detail later in this essay. The company, with vast amounts of funds available to formulate the kinds of integrated global marketing campaigns historically observed (over $8.3bn spent globally on marketing activity in 2004), has nevertheless attempted to understand its market from a corporate level in many ways.

Commitment to Online Development

By placing the evolution of its applications into Web-based services for enterprises and consumers (Hoover 2005) at the forefront of its product development strategy, Microsoft is demonstrating its perception that the Internet is and will continue to be important to its consumers. In addition, it has attempted to integrate its Hotmail email programme into a more far reaching MSN passport system, and relied on online functionality for the success of its games consoles. Davenport (1997) acknowledged that the company identified as far back as 1997 that they needed to embrace the Internet and incorporate it into virtually all products and services. Whether or not such a strategy will continue to prove successful remains to be seen, but success should be assisted by Microsoft’s original online vision and the experience it has gained since then.

Microsoft’s Corporate Strategy: Organic Growth & Acquisitions

During its lifetime, Microsoft has pursued an aggressive policy of take-overs and acquisitions. Via this strategy, Microsoft has shown that it is ready to adapt quickly to market conditions in order to appeal to its consumers. The company has carried out over 50 acquisitions in the last ten years. One of numerous examples of this includes the 1999 purchase of Hotmail, the world’s most popular free email service, and reflected Microsoft’s sound belief in the strategic need to deliver high quality free email services to its customers in the face of strong competition from other free email providers (Yahoo!, Lycos etc.). In addition, Microsoft has shown that it is prepared to purchase companies who could improve their overall product quality. Prior to the launch of its Xbox games console, the company embarked on a strategy to secure exclusive rights to top rated games, including the purchase of developer Bungie, creator of the popular game Halo.

The approach has allowed the company to acquire competencies it may have lacked if it had followed a strategy of internal development, and allowed it to bring high quality products to market within a relatively short timeframe.

Concurrently, Microsoft has strongly pursued a policy of internal development, placing a high level of emphasis on research and development. The company state in their 2004 annual report that the concept of integrated innovation was key to their strategy, which aims to deliver even greater value to customers. Hence, Microsoft has invested a great deal in product and service development (over $7bn in 2004). The company’s willingness (something which may or not have been enforced upon them for legal reasons) to allow third party companies to complement their products demonstrates an evolution in strategy. Such a strategy would seem to be complimentary to their competence of moulding other company’s products to fit their own product output as observed in the high number of acquisitions that have taken place. Hence, this type of integrated innovation would appear to see Microsoft playing to their strengths when delivering products to their markets.

A Workforce that Understands Technology Markets

According to Davenport (1997), Microsoft has built up a reputation for employing highly skilled individuals who understand the business and the industry. It is argued that, in doing so, the company’s operations are able to better adapt to the industry and the observed changes in markets. The company’s marketing activity, for example, must be able to communicate how the company is striving to meet the changing needs of the consumer. Highly skilled workers, therefore, will help the company to develop and implement strategies successfully as needed.

Such a reliance on highly knowledgeable staff in which product development occurs in parallel to understanding what the customer requires may be one of the main factors in maintaining its position. With a marketing department that understands the technology market and anticipates its changes, the company is able to retain its image as technology and product innovators.

The above has summarised many of the ways in which Microsoft has sought to appeal to its various target audiences. Observing the company’s competitive position may also help to identify the decisive factors effecting future continued success.

SWOT: An Analysis of Microsoft

For a full outline of identified strengths, weaknesses, opportunities and threats to the company, see Appendix B. Some of the key issues facing Microsoft as it aims to maintain past successes include the following.

In the past, Microsoft has been extremely successful in developing new products by promoting, or bundling, them with existing brands. The Windows operating system is perhaps the best example of this, where applications such as Internet Explorer and Media Player have become industry benchmarks due to their out of the box availability. By exploiting the monopoly power it has on PC operating software, it is in a position to influence the success of strategic areas of future performance. In an industry where the battleground for future dominance in the technology industry is likely to be aggressively fought, as companies increasingly move towards wholly integrated media devices, the strategic advantage of such a means cannot be overstated.

Legal Lawsuits

Due to an observed monopoly Microsoft enjoys in the home PC market, it could be considered inevitable that competitors will seek to undermine or diminish this power though legal means. It is, however, stated in Microsoft’s 2004 annual report that major progress has been made to stem legal action and improve relations with governments. Nevertheless, the threat of lawsuits remains one of the greatest threats to Microsoft’s current monopoly of its market position.

Current examples:

• Recent payment to RealNetworks, Inc. ($361 million)
• Recent Novell settlement

Emerging Online Brands

The emergence of online global brands has led to strong competition, particularly within the media market, a developing Microsoft market according to Hoover (2005). Google and others are increasingly bringing a greater range of products to the market, many of which directly compete with Microsoft’s own product portfolios.

What perhaps differentiates Microsoft from many of its more traditional competitors such as IBM is its globalised nature. Anholt (2000), as cited by Fill (2002) suggests that by using technology in place of more traditional physical distribution channels Microsoft was able to negate the inefficiencies associated with the latter. Upcoming online brands, on the other hand, do not suffer the same traditional barriers, and may in time create better conditions to compete effectively with Microsoft.

Conclusions

As the technology market evolves, it could be speculated that the successful companies within the industry will be the ones that are able to best suit the changing needs of consumers. If the upcoming trend towards technological integration of media products predicted by Microsoft and others does occur, the company is seemingly well placed to do this.

The many analysed strengths of Microsoft detailed in this essay appear to be particularly pertinent to the evolution of the market’s needs. The company appears to have sensibly accepted the role of integrating competing products within its own products, which may in future assist it in maintaining its position from a legal perspective. Adaptability in the market place, as it has been in the past, may prove to be decisive as competition from Google and other online brands strengthens.

Microsoft Overview

• Company Name: Microsoft Corporation
• Current CEO: Steven A. Ballmer
• Company Headquarters: 1 Microsoft Way
• Redmond, Washington State, USA
• Shares listed on: Nasdaq (USA)
• Current Share price $28.07
• (as at 18/11/05)
• Year high $28.00
• Year low $23.82
• 2004 Sales Revenue $36.835bn
• (Year ended June 30, 2004)
• 2004 Net Income $8.168bn

SWOT Analysis

Bibliography.

• East, R. (1997), Consumer Behaviour: Advances and Applications in Marketing FT Prentice Hall, UK
• Fill, C. (2002), Marketing Communications: Contexts, Strategies and Applications (3rd Ed.), FT Prentice Hall, UK
• Davenport, T.H. (1997) Knowledge Management at Microsoft,
• Web: 2005 Sales, source Hoover’s Microsoft Company Report 2005

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Home — Essay Samples — Business — Advertisement — The History and Advertising Strategy of Microsoft Company

The History and Advertising Strategy of Microsoft Company

• Categories: Advertisement Microsoft Corporation

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Published: Jan 8, 2020

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Microsoft Case Study

Works cited:.

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• Coca Cola: Beverage Market Share 2015.” Statista, www.statista.com/statistics/387318/market-share-of-leading-carbonated-beverage-companies-worldwide/.
• “Microsoft's Search.” Harvard Business Publishing, hbsp.harvard.edu/download?url=/courses/541540/items/709461-PDF-ENG/content&metadata=e30=.
• Lopez, Maribel. “7 Reasons to Give Microsoft's Strategy Another Look.” Forbes, Forbes Magazine, 19 Apr. 2016, www.forbes.com/sites/maribellopez/2016/04/19/7-reasons-to-give-microsofts-strategy-another-look/#39f072ec7dd0.
• Mcgraw Hill online text book .

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Microsoft Corporation: PEST and SWOT Analysis

Today, Microsoft Corporation is a world leader in software production, provision of services, and Internet technologies for personal computers and servers. Over the years, the company has experienced ups and downs but was able to overcome the crisis and keep the bar of the leader in the development of various software technologies and products. This work is devoted to the analysis of the problems faced by the company and the decisions taken by the company’s management.

Microsoft has many successes on its account, which resulted from the evolution of the company’s marketing and production over the years. In addition to its operating systems, the company has a stranglehold on the office suite market. Large and small enterprises use this software because it gave them tools that made it easier to process texts and create spreadsheets, presentations, and documents. The primary success of Microsoft is undoubtedly Windows NT, a family of operating systems that Microsoft has been using since the early 90s. In addition, it is possible to recall Windows 95, Windows XP, Windows 7, mobile operating, and search systems, which significantly expanded and strengthened the company’s influence on the global market.

However, Microsoft also had setbacks that negatively affected the company’s reputation. For example, Windows ME is an operating system that was released in a hurry and, as a result, lasted only a little more than a year. It was constantly faced with incompatibilities, bugs, slow and unstable work. Microsoft Vista was heavily criticized for many errors and problems, which is why the company’s management even organized a particular Windows Mojave advertising campaign. Marketing failed to implement its plans, especially after users discovered that the operating system was stuffed with DRM restrictions and consumed excessive RAM and processor resources.

In 2011, the company decided to enter the growing mobile industry and took the dominant position of Google thanks to the Bing search system. The Internet is playing an increasingly important role in human activity, as it provides quick access to a massive amount of information. It means that users need high-quality search engines, including Bing, which has many useful features and updates to compete with Google and Google Chrome. Thus, given the constant innovations and changes, Microsoft search systems will remain in demand for a long time.

Nevertheless, the same cannot be said about Microsoft’s mobile products, the production of which ended four years ago due to several factors. For example, in the last years of the life of Windows Phone, Microsoft, for some reason, began to target the commercial sector, although it was necessary to focus on the mass consumer. In addition, Windows Phone had a minimal app store. Developers were reluctant to optimize their applications for the new platform because Windows Phone used a different API, which took a lot of time and money. Thus, the field of mobile devices could become an extremely profitable and promising direction for Microsoft, but Windows Phone came out too late. If Microsoft had introduced a new operating system earlier, instead of using Windows Mobile until the last moment, the story could have turned out entirely differently.

Microsoft needs to listen to users’ words and no longer try to establish a monopoly on a particular product sector so that the company’s actions do not cause disputes and disagreements. In addition, a transparent and honest marketing policy is needed, which will convince customers of the high quality of Microsoft products. It will also serve as an essential component of the company’s reputation. Of course, Microsoft has been on the market for many years and has a stable and reliable reputation. Still, the situation on the market may change, new competitors may appear, which will have to be reckoned with and coexisted.

PEST Analysis

Microsoft has faced several political challenges over the past couple of years. In particular, some trust issues have arisen, which are severe and require solutions, unlike many other problems. Countries, primarily China, face the problem of methods of distribution and sale of Microsoft software. Relations between the United States and China are, for the most part, friendly and mutually beneficial (Warner, 2019). The United States relies heavily on China, which means that any problems and interference can cause unrest even for Microsoft. However, the issues are connected with China and the European Union, which in 2013 fined the company $ 730 million for violating trust rules. Recently, the EU changed its privacy rules, which may be the reason for continuing legal proceedings against large American companies.

Any active business’s profitability and income directly depend on the political environment, so Microsoft needs to monitor laws in other countries carefully. Over the past two years, the company’s management has spent more than ten million dollars on organizing a favorable political environment, so Microsoft is in an advantageous position (Warner, 2019). Microsoft operates in many countries, so the nation’s attitude to the company’s activities directly affects its success.

The corporation is still recovering from the changes that occurred more than a decade ago. In 2007, when the financial crisis broke out, Microsoft was forced to lay off more than 5,000 employees. Any changes in the economy can lead to devastating consequences for companies, even as big as Microsoft. The current state of the economy also impacts Microsoft’s situation, as profits fluctuate due to changes in tax rates and labor legislation. In addition, unfriendly relations between international companies can increase inflammation or hinder the import and export of materials.

In 2015, the strengthening of the dollar led to a reduction in revenues and expenses from Microsoft’s international operations. If one country is experiencing difficulties, their purchasing habits will shift only to essential goods. However, if a country’s economy is booming, they are likely to buy more products, even if they are not expediently needed (Jiang et al., 2021). Microsoft needs to act accordingly to ensure that such changes will not significantly impact the company as a whole.

In addition to economic factors, social factors have a significant impact on the company’s income and profit. The lack of tracking of cultural changes can have a negative effect on business (Lopez Giron & Vialle, 2017). The management of large companies makes a lot of efforts to learn about new trends, to study the customs and cultural traditions of the countries where their business operates. Unfortunately, Microsoft doesn’t pay much attention to changing its positioning to benefit cultures.

There is a significant increase in mobile devices, which should be fast, optimized for screen size, and easy to use. Microsoft has not easily adapted to smartphones, as most Microsoft products are designed for computers. Microsoft needs to make some adjustments in its attitude towards mobile device users if the company wants to succeed in this field. For example, it makes sense to include smartphones as the central part of their marketing strategies; otherwise, other companies will take the initiative.

Microsoft is a technology company that develops and distributes digital software. The corporation is affected by any changes in the technology industry: the old technology is discarded as soon as a new one is developed. The two main competitors, Apple and Google, pose a constant threat to Microsoft, as they adapt more easily and quickly to continuous changes. If Microsoft does not take any action, it will most likely lead to a devastating loss of profits (Warner, 2019). Fortunately, Microsoft invests a lot in innovation, research of new technologies. For example, the company has achieved profit growth after the introduction of cloud services. Nevertheless, the corporation is not entirely familiar with mobile technologies, which are gradually becoming a priority.

SWOT Analysis

• A leading position in the global software technology market, especially in the field of cloud computing. Microsoft is the world’s largest operating system developer and a top cloud player. In the third fiscal quarter of 2020, the number of daily users of the Microsoft Teams remote work solution increased by 70% – from 44 million to 75 million within six weeks; and increased by 110% in the four months prior.
• Microsoft ranks second in the world by market value, being the world’s largest company with a dominant market share. It also holds the largest market share with 3% growth among the five largest cloud service providers.
• Microsoft has a comprehensive market coverage, operating in more than 190 countries around the world.
• The corporation demonstrates constant and steady growth in the cloud business based on profit results.
• The company’s management resorts to effective and robust marketing strategies that impact people around the world.
• Microsoft focuses entirely on the PC market, which is often subject to falls due to rising supplier prices and currency fluctuations. This factor puts the company in a vulnerable and periodically dangerous position.
• Currently, there is a constant increase in cybercrime, which negatively affects the company’s activities. Hackers launch attacks on the cybersecurity of Windows operating systems.
• Microsoft has failed to increase sales of its hardware products, such as computers and Surface pro phones. The corporation lags in innovation and advanced technology, while Apple and Google are quickly making their way.

One of the organizational problems of Microsoft is the mobile direction of activity, which is difficult for the company. This problem is evident against the background that companies are beginning to allow their employees to use Android and iOS devices instead of the traditional Windows and BlackBerry devices for the corporate segment. The attention of consumers is entirely attracted by new devices – smartphones and tablets in which Microsoft has not yet reached a confident position.

Potential marketing solutions to this problem are the following: the development of a recognizable Microsoft flagship phone, like Nexus or iPhone; the expansion of the Windows Phone app store; the corporation’s transition to the Android system. Presumably, the field of mobile technologies has already been conquered by other companies, and Microsoft is unlikely to regain a significant mobile device sales sector, even despite the high quality of its products. The best strategy seems to be the transition to the Android mobile system. Even a Windows Phone-based phone with a 50-megapixel camera will not convince connoisseurs of portable electronics to reconsider their preferences in favor of a mobile platform that is not currently in high demand.

Jiang, Z., Sun, J., & Wei, K. (2021). The Application of PEST Analysis and POCD Framework to Skydio’s Venture Capital Investment. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 202-208). Atlantis Press.

Lopez Giron, A. J., & Vialle, P. (2017). A preliminary analysis of mergers and acquisitions by Microsoft from 1992 to 2016: a resource and competence perspective.

Warner, J. P. (2019). Microsoft: A Strategic Audit.

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Microsoft Corporation

Firstly, in order to understand why Microsoft Corporation is on the top of the business world, it is necessary to analyze the way of its historical development. It is almost impossible to do without analysis of the life path of its creator, Bill Gates. At the age of 13, Bill became programming computers. At Harvard, he continued his hobby. Together with his friend Steve Ballmer, he wrote a version of programming BASIC. In 1975, Bill left Harvard and together with his friend, Paul Allen, formed Microsoft. Their goal was to develop software for the newly emerged PC market (Gates, 1998, pp. 25-26). Originally, the company was situated in Albuquerque, New Mexico. Nevertheless, when IBM introduced the first PCs in 1980, Microsoft was given a chance to develop an operating system for the computer hardware, and moved to Seattle to perform this task. Gates and Allen made some changes in the operating system, called the Quick and Dirty Operating System. They gave the new name for it – DOS. After making improvements, DOS was licensed to IBM. From that time, Microsoft software became the standard for PCs around the world. However, to deal with competitors, Microsoft Corporation could not stop at this stage of development. That is why, in 1983, Microsoft created Windows operating system, which provided users with such benefits (graphical interface) that were proposed also by the Apple system. This innovation gained success in the society and allowed Microsoft to retain leading position on the PC market. Subsequently, in 1986, the company launched IPO, which provided Microsoft with the necessary money to develop new products, and buy out smaller competitors. In addition, Microsoft Corporation gave away Internet Explorer adjusting to the growing need of the Web. In 1990, Bill Gates introduced Windows 3.0 and provided further competition for Apple software. By the 1990s, the company held a monopoly in the field of operating systems of PCs, as almost 80% of the world’s PCs used its software (Geisst, 2009, p. 179).

Nowadays, Microsoft Corporation can be defined as the leading company in the field of software. It is known worldwide for such applications as MS-Office Suite consisting of Word (word processor), Excel (spreadsheet), Power Point (presentations), Outlook (e-mail and news), and Access (database). Nevertheless, it is not only famous because of its software, but also because of hardware as it offers keyboards, mice, and Xbox gaming console. In addition, in 2013, Microsoft started to expand its power in the sphere of mobile technologies. It acquired the handset division of Nokia (Economides, 2003, p. 3).

Secondly, the benefits of Microsoft Corporation cannot be clearly noticed without regarding concrete case studies. The first one is concentrated on the company SunSmart Energy, which is situated in the U.K. It is “a startup company that designs, sells, and installs solar photovoltaic (PV) systems, which convert solar energy into electricity” (Microsoft, 2012). To attract customers and occupy the leading position on the market, the manager of it, Matt Thorington, has chosen the strategy of close contact with customers. Microsoft has helped SunSmart Energy to bring this idea into life. It provides it with Microsoft Dynamics CRM Online, the customer and sales management tools, which can be accessed over the Internet. With this program, SunSmart Energy gains such benefits as cost-effective purchasing model, based on a per month and per user basis, increased profitability through tight control of costs, and direct communication and connection with the customers (Microsoft, 2012). Nevertheless, Microsoft is vital not only for the business environment, but also for social one. The second case study reveals the importance of Microsoft for people with special needs. Ignacia Picas is a student at Colegio San Benito, a primary level school in Santiago. She is blind. However, it does not prevent her from successful studying. Windows accessibility programs, integrated in Microsoft Office application and compatible screen reading software play a very great role in it. They give her the opportunity to perform a full range of different activities in the class and be in the same league with other students (Microsoft, 2012). Despite of all benefits that are clearly defined in these case studies, there are some of them, which point out weak sides of Microsoft Corporation. For example, the Antitrust Division of the Justice Department accused Microsoft of violations of the Sherman Antitrust Act in 1998 (Geisst, 2009, p. 180). The initial trial judge admitted the guilt of Microsoft for monopolization, and ordered the company to break into two parts (Geisst, 2009, p. 180).

According to the historical path of its development and concrete examples of case studies, main benefits of Microsoft Corporation can be defined. The biggest one of them is the adjustment to the needs of the time. It means that managers of Microsoft work constantly on the improvement of software and hardware as well as introduction of new models as it gives the opportunity to follow modern tendencies of life. Another benefit is the diversity of products, which appeal to the needs of big companies and every citizen in particular. It becomes clear from both case studies. In the first example, Microsoft Corporation provides the company with the program that allows its constant connection with customers and tight control of the costs. In the second one, it allows people with special needs to feel comfortable in the society. The third advantage is strong leadership. Bill Gates has not only created a strong initial base for the company, but also adjusted it to the needs of the turbulent times. For example, to overcome the competitor, Apple Corporation, Bill Gates has introduced Internet Explorer, Microsoft Windows, and Windows 3.0. Nevertheless, the drawbacks of Microsoft Corporation should not be underestimated. The biggest of them that it is almost complete monopolist in the sphere of computer software. Therefore, it does not give customers opportunity for choice. In addition, the cost of the production is under the tight control of Microsoft Corporation. Consequently, it means that the government does not have many possibilities to regulate it.

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Finally, it becomes clear that the advantages of Microsoft Corporation overcome the disadvantages. According to it, the future of Corporation will be based on them. As the tendency of the near future is predicted to be formulated in such a way – to get more benefits from the combination of ordinary things, the Microsoft will follow this modern tendency. That is why the motto of the future is “to make a pizza to feed a billion of people” (Chen, 2011, p. 81). The goal of the Microsoft is to use its software on every type of computing gadget that exists. Even in 1994, Microsoft started to explore the option of collaborating with cable television companies like Time Warner and TCI in the development of software standards for the delivery of television – based information services (Hamel & Prahalad, 1996). That is why this system of relations will be improved and expanded. It will definitely provide many companies with many benefits. For instance, they will have the opportunity to receive effectiveness from the combination of different resources. From my point of view, it is a good idea to make the clocks with Microsoft Windows software and instant connection to the Internet. Employees will have the opportunity to be controlled on the workplaces and send their offers and requests to the managers immediately.

To sum up, Microsoft Corporation is a large diversified computer software manufacturer with one of the highest evaluations in the world. It has come a long way of development and improvement from the small company, situated in Albuquerque, New Mexico to one of the largest corporations in the world. According to the regarded case studies with SunSmart Energy Company and blind college student, Ignacia Picas, such benefits of Microsoft as the adjustment to the needs of the time, diversity of products, and strong leadership can be defined. Nevertheless, the case about the violations of the Sherman Antitrust Act by Microsoft shows that the biggest disadvantage of this company is monopolization of power. As advantages of the company overcome the drawbacks, the future of it will be based on them. Accordingly, it is possible to predict that Microsoft will expand its power on all possible gadgets, following the modern needs of time.

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