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Microsoft PDF
Microsoft PDF
Prepared by
Ambuj Gupta (09)
Tanvi Arora (68)
Priyansha Rastogi (48)
Snigdha Singh (64)
Dhruv Aggarwal (20)
Ritesh (54)
INTRODUCTION
Microsoft Corporation is an American multinational software corporation
Microsoft Mission
Microsofts mission
is to provide people
and businesses
with the power of
computing any time,
anywhere, and on
any device
Microsoft Vision
A computer
on every
desk, and in
every home.
Microsoft History
Microsoft was established to develop and sell BASIC interpreters for the Altair 8800.
It rose to dominate the personal computer OS market with MS-DOS in the mid-1980s, followed by
the Microsoft Windows line of operating systems.
The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three
billionaires and 12,000 millionaires from Microsoft employees.
Since the 1990s, it has increasingly diversified from the operating system market and has made a number of
corporate acquisitions.
In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
As of 2013, Microsoft is market dominant in both the PC operating system and office suite markets (the latter
with Microsoft Office).
The company also produces a wide range of other software for desktops and servers, and is active in areas
including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles, and the
upcoming Xbox One console), the digital services market (through MSN), and mobile phones (via
the Windows phone OS).
In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with
the launch of the Microsoft surface tablet computer.
Organizational Structure
Bill Gates (CEO) and Steve Ballmer (President) are
Microsofts most visible leaders. They work with a
Business Leadership Team to make sure Microsoft
is responsive to its customers and creating great
technology
Bob Herbold, Executive Vice President, Chief Operating Officer, Worldwide Operating Groups
Jim Allchin, Sr. Vice President Business & Enterprise Division, Consumer Windows Division
Orlando Ayala, Sr. Vice President, South Pacific & Americas Region
Business Division
The Microsoft Business Division produces Microsoft Office including Microsoft
Office 2010, the company's line of office software. The software product
includes Word (wordprocessor), Access (a relationaldatabase program), Excel (
a spreadsheet progrm), Outlook (Groupware, frequently used with Exchange
Server), PowerPoint (presentation software), Publisher (desktop publishing
software) and Sharepoint.
The division also develops enterprise resource planning (ERP) software for
companies under the Microsoft Dynamics brand. These include: Microsoft
Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, and Microsoft
Dynamics SL. They are targeted at varying company types and countries, and
limited to organizations with under 7,500 employees.
Entertainment Division
The Entertainment and Devices Division produces the Windows CE OS
for embedded systems and Windows Phone for smartphones.
Microsoft initially entered the mobile market through Windows CE
for handheld devices, eventually developing into the Windows Mobile OS
and now, Windows Phone.
Windows CE is designed for devices where the OS may not directly be
visible to the end user, in particular, appliances and cars.
The division also produces computer games that run on Windows PCs and
other systems including titles such as Age of Empires, Halo and the
Microsoft Flight Simulator series, and houses the Macintosh Business
Unit which produces Mac OS software including Microsoft Office 2011 for
Mac.
Marketing
A study by the Yankee Group concluded that upgrading from one version of Windows
Server to another costs a fraction of the switching costs from Windows Server to Linux,
although companies surveyed noted the increased security and reliability of Linux
servers and concern about being locked into using Microsoft products.
Another study, released by the Open Source Development Labs, claimed that the
Microsoft studies were "simply outdated and one-sided" and their survey concluded
that the TCO of Linux was lower due to Linux administrators managing more servers on
average and other reasons.
Environment
Microsoft's main U.S. campus received a silver certification from the Leadership in
Energy and Environmental Design (LEED) program in 2008, and it installed over 2,000
solar panels on top of its buildings in its Silicon Valley campus, generating approximately
15 percent of the total energy needed by the facilities in April 2005.
Microsoft makes use of alternative forms of transit. It created one of the worlds largest
private bus systems, the "Connector", to transport people from outside the company;
for on-campus transportation, the "Shuttle Connect" uses a large fleet of hybrid cars to
save fuel. The company also subsidizes regional public transport as an incentive. In
February 2010 however, Microsoft took a stance against adding additional public
transport and high-occupancy vehicle (HOV) lanes to a bridge connecting Redmond to
Seattle; the company did not want to delay the construction any further.
Microsoft was ranked number 1 in the list of the World's Best Multinational Workplaces
by the Great Place to Work Institute in 2011.
PRODUCTS @
Computers
Surface
All-in-ones + desktops
Laptops + Ultrabooks
Accessories
Tablets + convertibles
PC games
Office
Office for Windows
Office for Mac
Office University
All Office apps
Windows
Windows 8
Windows 8 Pro
Xbox
Xbox One
Xbox 360
Xbox LIVE
STORE
Windows Phone
Windows Phone for AT&T
Windows Phone for Verizon
Windows Phone for T-Mobile
Accessories
Computer accessories
Xbox 360 accessories
Windows Phone accessories
PC gaming
Audio accessories
Additional software
Visual Studio
Visio
Project
Mapping
PC games
Original Xbox
Proved that Microsoft could create hardware and appeal to gamers.
Introduced gamers to Xbox Live.
One of the most successful divisions in Microsoft today
Windows 95
Sold a record-setting 7 million copies in the first five weeks.
First appearance of the Start menu, taskbar, and minimize, maximize, and close
buttons on each window.
Built-in Internet support, dial-up networking, and Plug and Play capabilities
Windows XP
Most popular operating system to date. The OS was released in October 2001
Windows XP 64-bit Edition was the first Microsoft operating system that used 64-bit
processors designed for working with large amounts of memory.
XP made projects such as movie special effects, 3D animations, engineering, and
scientific programs possible.
MS DOS
The company purchased QDOS from Seattle Computer Products
put its own touch on the software.
Microsoft specifically modified QDOS for IBM PCs and MS DOS was born.
The first edition, MS-DOS 1.0, was launched in 1982.
The version shipped with IBM's PCs was called PC DOS.
Microsoft Office
Office is one of Microsoft's most useful and popular products. Besides being an excellent
productivity application, Office is extremely easy to develop for.
Office remains the go to productivity suite because any attempt to topple Office means
declaring war on the army of in-house and third-party developers who have built their
livelihoods around the suite's expanding library of automation and integration APIs.
In the meantime, we're eagerly waiting for Microsoft Office to finally hit tablets on
Windows 8 and the iPad.
Windows 3.1
Windows 3.1 was a 16-bit operating system that laid the foundation for today's
modern operating system.
3.1 debuted in 1992 and became the first version of Windows to be widely distributed
with new PCs.
Windows 3.1 essentially stamped Microsoft's dominance and began the Golden Age of
Windows.
3.1 introduced the organization of programs, a dedicated file manager, true-type fonts,
a built-in screen savers, minesweeper and solitaire, and a host of other improvements.
Xbox 360/Kinect
Xbox 360 competed directly with the Playstation 3 and stood its ground.
More than 70 million Sold
Introduced more storage, faster performance, and wireless controllers.
The Kinect, which was introduced in 2000, has been hugely successful.
Kinect is a new type of motion based controller that allows users to interact with their
television through movement.
The peripheral has spawned many imitators and sold over 18 million units
With the increased popularity of Mac computers, hackers are starting to target the system. In
April, there was a Mac security threat called the LuckyCat attack. LuckyCat took advantage of
an exploit in Microsoft Word documents, giving a remote attacker the ability to plunder infected
systems and steal data by hand.
Apple's recent operating system release, Mountain Lion has added some features that increase
security, but we're sure as time goes on and the system continues to gain attention hackers will
target OS X directly.
That being said, Macs make up such a small percentage of computers out there, that most
hackers don't waste their time with it. Windows PCs are notoriously know for hacks and viruses.
It is a requirement on any PC to have anti-virus software installed.
on the system. Every Mac has a built-in program called Boot Camp that lets you
install Windows on your machine. If you want, you can divide space on your hard
drive between Windows and Mac OS X so you'll have both operating systems on
the same computer
Strenghts
Brand loyalty
Over the years, Microsoft has been the leading OS and software provider, which
resulted in more than 90% market share for PC OS. Most of us grew up using its
easy to use OS, are familiar with it and will keep using it. Few other brands are
capable to compete with Microsoft for this reason. Even open source OS, which
are completely free and well suited to use for common user, find it hard to
attract users.
Brand reputation
According to Interbrand, Microsofts brand is the 5th most valuable brand in the
world, valued at $ 57.8 billion. Forbes listed the corporate as the 7th most
reputable business in the world. Brand reputation leads to higher sales and
greater market share.
Weakness
Mature PC markets
Only recently has Microsoft entered the mobile technology sector and still heavily
depends on its OS and software sales for standalone and laptop computers. The
market for these products has matured and Microsoft will find it harder to grow
revenues in these sectors.
Slow to innovate
Microsoft has huge R&D resources and great position to enter new markets with
innovative products but constantly failed to do so. It had an opportunity to be the first
player in online advertising but missed the opportunity. Its entrance to mobile OS was
also too late, while Google and Apple captured the market share.
Opportunities
Cloud based services. Microsoft could expand its range of cloud services and
software as the demand for cloud-based services is expanding.
Mobile device industry. Smartphones and tablets markets will grow steadily over
the next few years and Microsoft could exploit this opportunity by introducing more
of its own tablets and a new company phone.
Growth through acquisitions. With a huge reserve of cash Microsoft could start
acquiring new startups that would bring new technology, skills and competences to
the business.
Threats
Potential lawsuits
Microsoft has already been sued for many times and lost quite a few large scale lawsuits.
Lawsuits are expensive as they require time and money. And as Microsoft continues to operate
more or less the same way, there is high probability for more expensive lawsuits to come.
the near future. Although Microsoft is a leading company in its chosen field of software
industry, the dominance and the monopoly that it enjoys can be erased and its dominance in
the market can be eclipsed by other new companies in the industry. The paper has identified
several problems inherent to the company and have highlighted the effects that these negatives
factors will bring on the over all stability of the company in the future. Problems such as poor
designs, the challenge of other competitors like Linux and tightening government control are
some of the hindrances that will eventually obstruct Microsoft in its road to progress. To
eliminate and to diminish the impact of these problems and difficulties, the company must
undertake needed reforms and initiate policies that will improve certain aspects of the
company.
PESTL ANALYSIS
Political
Legal
technological
economical
social
Brazils government is abandoning Windows in favor of opensource software like Linux. The reason is that for every work
station, the government pays Microsoft fees of around $500. If
they switch to open- source, they pay less. Brazil could save
$120 million a year (Kingstone, BBC News).
Taxation policy
Political stability
Change of governments and
political structure
Change in policy
Law structure change
Ban on products
Economical
Money supply
Exchange rates
Economic growth
Unemployment rate
Social
Consumer preference
Living status (tech-force,
broad mind)
Average population age
Technological
Software updates
Accessibility
Enhanced security
Size of hardware
CONCLUSION
Technology is the key driver which could
influence impulsively to Microsoft business
Strategy.
Microsoft's sustainability of business is greatly
dependent on the ability of competitors to
provide better solutions at competitive low prices
If Microsoft fails to acquire or innovate the
substitute next level technology for their
platforms, the existing strategy have better
chances to fail.
switching companies.
deploy a four or five-year old operating system today, most people will ask
their boss why the heck they dont have the stuff they have at home,
according to Microsoft CEO, Steve Ballmer .
Threat of Substitutes
Microsofts Windows operating system is unique in terms of
users trying to find a comparable product.
a different experience.
Competitive Rivalry
Microsoft and Apple have been competitors for decades now.
Nevertheless, both companies are not the same in size, so it is not a highly
competitive market.
In addition, the computer industry is not fully matured which leaves plenty
of room for future competitors.
Microsoft has little to worry about now in terms of Windows 7s
competition.
The main competition is Apples Mac, but as we discussed, it is more
expensive and requires time to grasp its operating system.
Microsoft proactive approach Windows OS- Release of Graphic based OS made Microsoft popular
and continuous updates make Microsoft top in this segment.
Office suite and continuous development-Office suite is the most
When people think of innovative tech companies, they generally dont think of
Microsoft. Microsoft has actually had a history of innovative products and ideas, but
theyve failed to execute them over and over again.
E readers-Microsoft had a prototype e-reader ready to go in 1998, but they
never used it. From 2007 Amazon rules this segment through kindle.
Smartphones- Windows developed mobile os in 2000. But they never make it
better till the deal with NOKIA in 2010. In 2007 apple launched the first mobile
based on IOS, and ruled the smartphone segment.
Tablets-Microsoft released Windows XP Tablet PC Edition in 2002, eight years
before Apple released the iPad.
Web Browsers: Internet Explorer-Internet Explorer was struggling to catch up
with modern browsers as previous versions were far surpassed by Mozilla Firefox
and Google Chrome.
Where Microsoft Fails Web-Based Email: Hotmail-Microsoft purchased Hotmail in 1997. Google released Gmail
in 2004. Gmail was far superior to Hotmail when it was released, featuring a much cleaner
interface, conversation views, a huge amount of storage space, and a very effective spam
filter. Microsofts Outlook.com is now actually fairly competitive
Smart Watches- Microsoft actually had a smart watch platform, known as the SPOT watch,
which was discontinued in 2008. Perhaps the SPOT watch discontinued may be because of
bad experience, subscription fee, lack of vision or marketing.
after three years of development, all of the work was thrown out and they started again on
the operating system that would become Windows Vista. At that time apple launched
Apples OS X. It was quite fast and stable.
PC Hardware- Apple has the MacBook Pro with retina display, a powerful, well-built
machine with a high-DPI display and high-quality track pad. Googles Chrome OS ecosystem
even has the Chrome book Pixel.
Where Microsoft Fails Music- Apple was nearly dead in the late 1990s. Apple was saved by iTunes and the
iPod, which provided a legal and convenient way to download and share music.
Microsoft had an early head start making software for the portable music market,
but did not find good hardware partner. In 2006, Microsoft came up with its own
product -- the Zune with wi fi sharing but it fails.
Search engine- Internet Explorer was so successful that Microsoft had to spend
years fighting off antitrust suits that now seem silly. Those clashes probably
distracted the company from the Internets real money-maker search products.
Microsoft later realized that Googles success was due to its monopoly in searchbased ad sales.
Cloud-based Office apps such as Google Docs- Microsoft invented this in early
1999. I was part of that, but we couldnt figure out any way that the Office team
would be interested or see it as other than a distraction.
Microsoft does its best to create a corporate culture, which gives a broad business
environment.
The GD&I (Global Diversity & Inclusion) is a strategy that is a fundamental link in the
Microsofts business priorities.
The marketing strategy of Microsoft includes a bond with different schools and
colleges, or professional organizations.
In the same marketing strategy of Microsoft, they run a worldwide program, in which
different high school girls are allowed to have a session with different Microsoft
employs
Microsoft provides their leaders with the very best cultural capability training. hey
Future Strategies Being able to serve diversified and emerging markets is key to Microsoft
future. Like Africa, china etc.
Microsoft is a transformation from being a software company to being a device
and service company.
On top of devices they are focused on Office 365 and X BOX, Windows mobile
and mainly Windows os.
Microsoft planning to open retail stores in early 2013 for direct selling and
customer interaction.
Microsoft Plans New Data Centers in Singapore, Australia.
Yearly updates to windows software's will be the norms soon.
Microsoft : Progress with e commerceThe impact of new technology is one of the most exciting and challenging of all the
external influences on a company. digital technology will dramatically increase the
speed at which business is conducted.
Bill Gates himself coined the phrase Business @ the speed of thought.
Digital nervous system- It is a combination of hardware and software which
enables the firms internal processes to operate smoothly and quickly, which
means it can respond rapidly to any change in the business environment.
Direct marketing and selling-Businesses can expand their potential market and
the services they offer by using the Internet to contact customers daily.
II.
Decreasing the cost of transactions and making the system accessible to all sizes of firm
III.
IV.
THANK YOU