Microsoft Corporation is the global leader in software and hardware technology development. The organization has managed to be at the top of the technology as a result of the various strategies that it has put operation. As a result of the application of the most successful strategy in marketing and another element of activities, the organization has managed to become the global leader in technology. This paper examines the different approaches that the organization uses.

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Background and Industry

Microsoft Corporation is the leading global developer of personal computer software and applications. The company which also published books and multimedia title do produce its online of hybrid tablets, computers and offers email services, electronic games system and in the recent development also offers portable media device players. Microsoft Corporation has its principal sales offices across the world. The significant research and development centers of Microsoft located in Redmond, Washington, D.C. in the United States. Microsoft Corporation continues to be the market leader in terms of massive and superior computers. The company operates in the computer technology industry. This industry is probably the largest in the United States, with an estimated value of over $1.7 trillion. Most Microsoft Corporation profits come from the sale of computer hardware, software, email systems, electronic games systems, and the latest invention through the sale of media device players. The success of the company can be attributed or the element of intended purposes of its product on users. It ensures that the more significant aspect of its produce is matching the production with the specific needs of the customers and works to empower the customers (Rothaermel, 2017).

Brief History

Microsoft Corporation was founded in 1975 by the founders Bill Gates and Paul Allen from Seattle. They converted the basic, a popular mainframe computer programming language for the use of an early personnel commuter. Shortly after this, Gates and Allen founded Microsoft delivering the names from the word’s microcomputer and software. In 1980, the International Business Machine Corporation IBM did Microsoft to produce the essentials software or operating system. The business model, the Microsoft Corporation, has implemented is based on the customer and product diversification and being inclusive to ensure that it has a worldwide image that does not at any point appear to alienate anyone.

The critical leadership skills owned by the founders of the Microsoft Corporation is based on the innovative nature and the ability to coordinate the various activities of the organization towards achieving the set goals. However, much important the founders of the same do have the skills of employee coordination and customer relation, which they have since passed to employees of the company. Most of its business success has been through the adoption of customer needs into their products and service production all over the world. Microsoft Corporation understands the different needs of its customers through proper market research and analysis (Rothaermel, 2017).

Mission Statement

Microsoft Corporation’s mission statement is “to empower every person and every organization on the planet to achieve more.”

Vision Statement

Microsoft Corporation’s vision “to help people and businesses throughout the world realize their full potential.”

Long- and Short-Term Goals

The short terms goals for Microsoft Corporation revolve around revenues generation increase. The company aims at remaining the giant technological company to the previous year’s profit market by substantial value. However, the company’s long-term goals are to become the most excellent technical company in the world and to create an innovative culture to thrive in the computer technology industry. It also has the goals of enhancing its reputation by staying faithful to its responsibilities through the programs which empower and give back to communities in its fourth and fifth value (Rothaermel, 2017).

Major Issues or Problems of the Organization

Microsoft has seen a significant drop in revenue due to integration and restructuring, and this is according to the firm’s fiscal statement. A reduction of around $695 in year-on-year, has been seen by the firm. A lot of money has been spent on the ongoing restructuring, and this included the expenses on employee severance, facilities consolidation, and manufacturing operations. During the firm’s second-quarter conference call, the firm noted continued customer and revenue growth across a growing footprint of the cloud services (Beaty et al., 2012).

The firm has been involved in various legal matters that involved litigation over the company’s history; these cases are against the USA, the EU, and the company’s competitors. Microsoft has been continuously having legal problems stemming from antitrust issues as well as many patent infringements cases since the year 2002. In the USA, Microsoft paid record fines to the European Union that was relating to the rules of antitrust because it intentionally bundled its software with its Microsoft Windows operating system. From the years 2004 to 2007, the European Union forced the firm to pay a fine of $2.4 billion for the abuse of its dominant market position against software rivals, which included Real Audio Developers and Real Network. An additional penalty of $1.4billion was made on the firm in 2008 for failing to comply with the 2004 antitrust ruling (Beaty et al., 2012).

External Environment Analysis

The company has been able to identify its opportunities and threats from the global environment using PESTLE analysis. Political stability in the majority of worldwide markets creates opportunities for Microsoft to increase its investments. The economic stability of the majority developed countries also benefits the company, the stable attitudes present opportunities for Microsoft to create products that can satisfy consumers’ leisure preferences. However, factors like increasing cultural diversity, rapid adoption of mobile technology, and an increase in international trade agreements offer a threat to the company (Siddegowda, 2015).

Five Forces Model

Microsoft should develop better responses to overcome the impacts of external factors identified in the Five Forces Model analysis. The firm’s environment in five forces is as follows: there is a strong force in the competitive rivalry, a moderate effect in the bargaining power of the buyers. A reasonable force in the bargaining power of the suppliers, a weak force in the threats of substitutes or substitution. There is also a moderate force on threats of new entrants or a new entry.

Internal Environment

Microsoft capabilities were the result of its MS-DOS operating system for the IBM PC, and the outstanding skill in launching complex software products and in managing an ecosystem of partner relationships. Its core competencies are the development of software like windows and office and enterprise services like cloud computing that enables organizations and individuals to be more productive and engaging in their work (Siddegowda, 2015). The principal competencies and competitive advantage are enumerated in the VRIO table. Microsoft is the current most valuable business in the US, and this is linked to the critical skills as the VRIO analysis determines. The sharp brand image is what empowers the market to compete against other firms, especially those with fewer brands.

The firm has a strategic leadership style that sets the tone from the top. It puts emphasizes continuous learning and risk-taking. The leadership reinforces innovation, diversion, and inclusion — corporate social responsibility in being transparent and respectful of human rights. In the competitive use of technology, the company has substantial brand equity, which is a significant competitive advantage. It has brought an extensive suite of hardware and software products to the market (Siddegowda, 2015).

SWOT analysis

Strengths

Leading software company.
Worlds leading organization.
Vast market research.
Constant growth.
Additional newer stock keeping unit.
Massive market capitalization.

Weaknesses

Overexposed in the PC market.
Cybercrime and theft.
Lacking innovation.
Lacking market leadership in the internet browser segment.

Opportunities

Cloud business growth.
Innovation and artificial intelligence.
Partnership and acquisition.
Smartphone industry.
Cost leadership strategy.

Threats

Workforce related criticism.
Gay reference controversy.
Aggressive competition.
Changing the preference of the consumers.
Open source projects.
Cybercrime ad piracy.

Microsoft cooperation has yet necessary business features needed to remain one of the leading technology companies globally. The recommendation for the organization, however, is that it should continue to continue enhancing its brand image. It also recommended that the organization must increase its actual alliance with other companies to improve its positive externalities (Rothaermel et al., 2017).

The critical competency that would help Microsoft in reducing it’s the threats and the weakness would include working on its weak aspects and embracing the actual need for innovation. It would reduce the organization’s ability to compete effectively, which is one of the firm’s threat. On the element of opportunity and the strengths, Microsoft needs to take the radical stems of transforming its move towards being innovative. It needs to continue enhancing its brand reputation through useful marketing tools. It also needs to increase its computer hardware development effort in increasing its revenue from this segment of the business.

The key area for potential competitive advantage for Microsoft Corporation starts with the organization size. Having been in the market for a very long time, it understands the technology market, which gives it an edge over the other technology giants such as Apple and Google (Rothaermel et al., 2017).

Strategy Analysis

Microsoft operation business model is based on a diversified model that spans across the office products, windows, gaming, search advertising, and other related activities and products. It is among the largest technology giant, which in 2018 made over $100 billion just in revenues. The corporation business-level strategies involve driving as well as an expanding innovation to achieve the much-needed market excellence. The approach is based on accomplishing this to incorporate the talents of the corporation’s workforce into its product and services (Wei et al., 2013).

Microsoft cost differentiation strategy is used in differentiating itself from the other competitor in the market. Microsoft uses penetrations pricing to boost sales and get consumers talking about the product. Cost penetration differentiation of Microsoft is what it used to create a buzz and gain market share.

Microsoft marketing strategy is based on the product elements. The company has accepted a considerably higher level of sure convenience of its products and services as the unique selling proposition that is linked with the brand.

Microsoft’s broad difference general plan is to progress modest commercial gain through constant discovery novelty. This deliberate objective is vital to long-term success, sighted that Microsoft functions in a fast varying and highly self-motivated industrial.

The firm’s growth strategy is based on the element of acquisition and other forms of partnership. Microsoft has partnered with other organization to increase itself component of creativity and innovation. This helps the overall organization’s growth as it attracts more customers through such a partnership.

The Microsoft corporation invention strategy does address values, developments, and letting expertise in a rounded way. Microsoft’s Revolution Administration Outline is well-thought-out to support the corporation’s advance a comprehensive, joined elegance to implement and support an innovation administration approach (Rothaermel et al., 2017).

Strategic Alternatives

From the firm’s strategy analysis, I have realized that Microsoft’s more significant operation strategy relies on the element of innovation and the pricing strategy. These two key aspects are there are the primary growth factor which the company relies upon to gain the mush crucial competitive advantage that it enjoys at the moment. From the innovation strategy. Microsoft Corporation has managed to remain relevant in the market amidst the ever-rising competition from tech giants.

My recommendation for strategy alternative for Microsoft Corporation, however, is based on the critical element of adoption of the latest technology compatibility. As a crucial factor, I do suffer the Microsoft should use an alternative strategy based on the ability to integrate its operation such as the OS that is in line with that from the other organizations (Wei et al., 2013).

Implementation plan

As an implementation plan for the s strategies for Microsoft Corporation, it is critical to ensure that its focus on the element of innovations of its product and services over the aspect of cost strategy. This would, in my view, appear like the company is not in any way operating with any element of empathy. Change of the aspect of innovation would go a long way in enhancing the application of the recommendation, and Microsoft would experience further growth in its product and service for the market (Wei et al., 2013).

Conclusion

To remain the leader in the world of technology, Microsoft Corporation needs to pay a greater focus on the element of useful marketing tools and strategies alliances in promoting its growth. The organization is on the path to becoming an even better corporation. This owing to the advances that it’s correctly making on the aspect of marketing and other operations. Microsoft is an example of the best organization in line with marketing. With the various form of a strategy aimed at improving its operation relevance, Microsoft has the responsibility of developing a strategic objective for the dynamic technology industry to survive.

References

Beaty, K. A., Head, M. R., Kochut, A., & Sailer, A. (2012). U.S. Patent No. 8,140,905. Washington, DC: U.S. Patent and Trademark Office.

Chan, J. Y. W. & Wei, W. I. (2013). Current management strategy of hypopharyngeal carcinoma. Auris Nasus Larynx, 40(1), 2-6.

Rothaermel, F. T. (2017). Strategic management: concepts. New York, NY: McGraw-Hill Irwin.

Siddegowda, K. (2015). U.S. Patent No. 9,141,381. Washington, DC: U.S. Patent and Trademark Office.

different approaches that Microsoft Corporation uses

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