Microsoft is a large software company that develops operating systems, productivity software, servers, and various online services. Their main products include Windows, Office, Xbox, Skype and Bing. They face competition from companies producing alternative operating systems, productivity suites, mobile platforms and internet services. To strengthen their position, Microsoft needs to focus on innovation in mobile devices, tablets, security and new markets, potentially through divesting their Windows business unit to reduce antitrust issues. They also need to ensure their platforms are competitive in the growing mobile and tablet sectors.
2. Introduction: Microsoft
Microsoft Corporation is an American multinational
software corporation headquartered in Redmond,
Washington that develops, manufactures, licenses, and
supports a wide range of products and services related
to computing. The company was founded by Bill Gates
and Paul Allen on April 4, 1975. Microsoft
Corporation, incorporated on September 22, 1993,
their mission is to enable people and businesses
throughout the world to realize their full potential by
creating technology that transforms the way people
work, play, and communicate.
3. Product & Services
1.) Windows & Windows Live Division: This division develops and
markets PC operating systems, related software and online services,
and PC hardware products. This collection of software, hardware, and
services is designed to empower individuals, companies, and
organizations and simplify everyday tasks
2.) Server and Tools: This division develops and markets server software,
software developer tools, services, and solutions that are designed to
make information technology professionals and developers and their
systems more productive and efficient
3.) Online Services Division: This division develops and markets
information and content designed to help people simplify tasks and
make more informed decisions online, and help advertisers connect
with audiences. OSD offerings include Bing, MSN, adCenter, and
advertiser tools.
4. Product & Services (Contd.)
4.) Entertainment and Devices Division: This division develops and
markets products and services designed to entertain and connect people.
The Xbox 360 entertainment platform, including Kinect, is designed to
provide a unique variety of entertainment choices through the use of
our devices, content, and online services. Skype and Windows phone
are also developed under this segment.
5.) Microsoft Business Division: This division offerings consist of the
Microsoft Office system (comprising mainly Office, Office 365,
SharePoint, Exchange, and Lync) and Microsoft Dynamics business
solutions, which may be delivered either on premise or as a cloud-based
service.
4
5.
6. PESTLE
• political intervention in new deals
• Anti trust law
Political
• Fluctuation and Unpredictable behaviour of foreign
currency
• Tax and Import/Export barriers
• Microsoft affecting Investors in US after 4th Quarter
results (30th June 2013)
Economic
• Accessibility of technology to different capable
people (Disabled people, poor people)
• Empowering Youth
• Donating software to nonprofits worldwide
• Realizing potential with new skills in students
Social
6
7. PESTLE (Contd.)
• Fostering Innovation
• Microsoft put 13 - 14% of their revenue in
Research & Development
• Infrastructure
Technological
• Intellectual Property Rights
• Employee working hours, and Employement
enrichment
• Laws on business regulation (Against Monopoly
and forced competitor acquisitions)
Legal
• Saving Energy & Green IT
• Carbon Neutral
• Cloud Computing
• Requesting all Customer to recycle their product
after using
Environmental
7
8. SWOT
Strenghts
1. Brand loyalty
2. Brand reputation
3. Easy to use software
4. Strong distribution
channels
5. Acquisition of Skype
Weakness
1.) Poor acquisitions
and investments
2.)Criticism over
security flaws
3.) Mature PC markets
4.) Slow to innovate
Oportunities
1.) Cloud based
services
2.) Mobile advertising
3.) Mobile device
industry
4.) Growth through
acquisitions
Threats
1.) Intense competition
in software products
2.) Changing consumer
needs and habits
3.) Open source projects
4.) Potential lawsuits
8
10. Recommendations
1. Divestiture
At a minimum, Microsoft's Windows operating system monopoly should be
split off into a separate company from the application and Internet divisions.
This would end the inherent opportunities for abuse of one company competing
in application markets while controlling the "field" of competition as well. It
may also prove necessary to separate Microsoft's application and Internet
divisions.
2. The mobile market
The mobile space could be one of the biggest issues facing Microsoft. The
company's Windows Mobile platform is still toiling away in a market that's
being dominated by innovative, touch-screen platforms, like Apple's iOS and
Google's Android operating system. Microsoft plans to release Windows Phone
7 later this year to compete with those providers, but it's debatable just how
viable the company's platform will be. By being late to the new mobile market,
and forgetting what consumers really wanted, Microsoft has some serious
explaining to do when it finally delivers Windows Phone 7.10 www.eweek.com
11. Recommendations
3. Tablets
tablets at his company's Worldwide Partners Conference, it's quickly becoming
clear that Microsoft doesn't have a tablet strategy in place that can even come
close to rivalling Apple's iPad. Part of the fault for that can be attributed to HP,
which originally planned to offer a Windows-based HP Slate but recently
announced that its tablet will run WebOS instead. Some might believe that HP's
decision to go with WebOS has more to do with its recent acquisition of Palm.
But it might also tell the market that Windows isn't as ready for tablets as
Microsoft wants everyone to believe. After all, HP would have gone with the
best platform it could. It may be saying that the best platform isn't Windows.
4. Security
Security continues to be one space where Microsoft misses the mark both in the
consumer market and the enterprise. With each Patch Tuesday, the company is
forced to deliver several updates to protect Windows users from potential harm.
It has even been forced to patch Office, Internet Explorer and other software
products. That's not a good thing. And it hurts its chances of fully appealing to
consumers and enterprise customers that are deeply concerned with losing
important data. Security means the difference between success and failure in
today's marketplace. And so far, Microsoft isn't doing well enough.
12. Recommendations
5. Innovation
Innovation has always been a problem for Microsoft. Although Windows was
an extremely innovative product when it first launched, Microsoft has failed to
deliver anything that even comes close to matching the innovation its
competitors have developed since. As much as the company wants to be
considered a major player in the tech space, it will not achieve that if it
continues to deliver iterative updates to products that customers don't want.
Innovation reigns supreme in today's tech market. And it's on Microsoft to start
innovating to meet those demands.