Professional Documents
Culture Documents
Ready Product Mix
Ready Product Mix
Ready Product Mix
Lions College of
Commerce &
Economics
Subject: -
Service Sector Management
Project on: -
Product Mix Of Microsoft
Corporation
Standard: -
T.Y.BMS (A)
Submitted to: -
Miss Anshu
Student’s Name & Roll No.
Stars: Products with high growth and market share are known as stars.
Because these products have high potential for profitability, they should be
given top priority in financing, advertising, product positioning, and
distribution. As a result, they need significant amounts of cash to finance rapid
growth and frequently show an initial negative cash flow.
Cash cows: Products with a high relative market share but in a low growth
position are cash cows. These profitable products generate more cash than is
required to produce and market them. Excess cash should be used to finance
high-opportunity areas (stars or problem children). Strategies for cash cows
should be designed to sustain current market share rather than to expand it.
An expansion strategy would require additional investment, thus decreasing
the existing positive cash flow.
Problem children: These products have low relative market share but are in a
high-growth situation. They are called "problem children" because their
eventual direction is not yet clear. The firm should invest heavily in those that
sales forecasts indicate might have a reasonable chance to become stars.
Otherwise divestment is the best course, since problem children may become
dogs and thereby candidates for deletion.
Dogs: Products in the category are clearly candidates for deletion. Such
products have low market shares and unlike problem children, have no real
prospect for growth. Eliminating a dog is not always necessary, since there are
strategies for dogs that could make them profitable in the short term. These
strategies involve "harvesting" these products by eliminating marketing
support and selling the product only to intensely loyal consumers who will buy
in the absence of advertising. However, over the long term companies will
seek to eliminate dogs.
As can be seen from the description of the four BCG alternatives, products are
evaluated as producers or users of cash. Products with a positive cash flow will
finance high-opportunity products that need cash. The emphasis on cash flow stems
from management's belief that it is better to finance new entries and to support
existing products with internally produced funds than to increase debt or equity in
the company.
Based on this belief, companies will normally take money from cash cows and divert
it to stars and to some problem children. The hope is that the stars will turn into cash
cows and the problem children will turn into stars. The dogs will continue to receive
lower funding and eventually be dropped.
Microsoft Corporation
Type Public
NASDAQ: MSFT
Dow Jones Industrial Average Component
Traded as
NASDAQ-100 Component
S&P 500 Component
Computer software
Consumer electronics
Digital distribution
Computer hardware
Industry Video games
IT consulting
Online advertising
Retail stores
Automotive software
Founded Albuquerque, New Mexico (April 4, 1975)
Bill Gates
Founder(s)
Paul Allen
One Microsoft Way
Headquarters
Redmond, Washington, United States
Area served Worldwide
Steve Ballmer (CEO)
Key people
Bill Gates (Chairman)
Employees 89,000 (2010)
Website www.microsoft.com
Introduction
Microsoft Corporation (NASDAQ: MSFT) is an American public multinational
corporation headquartered in Redmond, Washington, USA that develops,
manufactures, licenses, and supports a wide range of products and services
predominantly related to computing through its various product divisions.
Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair
8800, Microsoft rose to dominate the home computer operating system market with
MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating
systems.
Microsoft entered the OS business in 1980 with its own version of Unix, called Xenix.
However, it was DOS (Disk Operating System) that solidified the company's
dominance. After negotiations with Digital Research failed, IBM awarded a contract
to Microsoft in November 1980 to provide a version of the CP/M OS, which was set
to be used in the upcoming IBM Personal Computer (IBM PC).[8] For this deal,
Microsoft purchased a CP/M clone called 86-DOS from Seattle Computer Products,
branding it as MS-DOS, which IBM rebranded to PC-DOS. Following the release of the
IBM PC in August 1981, Microsoft retained ownership of MS-DOS. Since
IBM copyrighted the IBM PC BIOS, other companies had to reverse engineer it in
order for non-IBM hardware to run as IBM PC compatibles, but no such restriction
applied to the operating systems. Due to various factors, such as MS DOS’s available
software selection, Microsoft eventually became the leading PC OS vendor. [3][9] The
company expanded into new markets with the release of the Microsoft Mouse in
1983, as well as a publishing division named Microsoft.[10] Paul Allen resigned from
Microsoft in February after developing Hodgkin's disease.[11]
1984–1994: Windows and Office
While jointly developing a new OS with IBM in 1984, OS/2, Microsoft
released Microsoft Windows, a graphical extension for MS-DOS, on November 20.
[12]
Microsoft moved its headquarters to Redmond on February 26, 1986, and on
March 13 the company went public;[13] the ensuing rise in the stock would make an
estimated four billionaires and 12,000 millionaires from Microsoft employees. [14] Due
to the partnership with IBM, in 1990 the Federal Trade Commission set its eye on
Microsoft for possible collusion; it marked the beginning of over a decade of legal
clashes with the U.S. Government.[15] Microsoft announced the release of its version
of OS/2 to original equipment manufacturers (OEMs) on April 2, 1987;[16] meanwhile,
the company was at work on a 32-bit OS, Microsoft Windows NT, using ideas from
OS/2; it shipped on July 21, 1993 with a new modular kernel and
the Win32 application programming interface (API), making porting from 16-bit (MS-
DOS-based) Windows easier. Once Microsoft informed IBM of NT, the OS/2
partnership deteriorated.[17]
Microsoft introduced its office suite, Microsoft Office, in 1990. The software bundled
separate office productivity applications, such as Microsoft Word and Microsoft
Excel.[18] On May 22 Microsoft launchedWindows 3.0 with a streamlined user
interface graphics and improved protected mode capability for the Intel
386 processor.[19] Both Office and Windows became dominant in their respective
areas.[20][21]Novell, a Word competitor from 1984–1986, filed a lawsuit years later
claiming that Microsoft left part of its APIs undocumented in order to gain a
competitive advantage.[22]
On July 27, 1994, the U.S. Department of Justice, Antitrust Division filed a
Competitive Impact Statement that said, in part: "Beginning in 1988, and continuing
until July 15, 1994, Microsoft induced many OEMs to execute anticompetitive "per
processor" licenses. Under a per processor license, an OEM pays Microsoft a royalty
for each computer it sells containing a particular microprocessor, whether the OEM
sells the computer with a Microsoft operating system or a non-Microsoft operating
system. In effect, the royalty payment to Microsoft when no Microsoft product is
being used acts as a penalty, or tax, on the OEM's use of a competing PC operating
system. Since 1988, Microsoft's use of per processor licenses has increased." [23]
1995–2005: Internet and the 32-bit
era
Following Bill Gates’ internal "Internet Tidal Wave
memo" on May 26, 1995, Microsoft began to
redefine its offerings and expand its product line
into computer networking and the World Wide
Web.[24] The company released Windows 95 on
August 24, 1995, featuring pre-emptive
multitasking, a completely new user interface with a
novel start button, and 32-bit compatibility; similar to NT, it provided the Win32 API.
[25][26]
Windows 95 came bundled with the online service MSN, and for OEMs Internet
Explorer, a web browser. Internet Explorer was not bundled with the retail Windows
95 boxes because the boxes were printed before the team finished the web browser,
and instead was included in the Windows 95 Plus! pack. [27] Branching out into new
markets in 1996, Microsoft and NBC Universal created a new24/7 cable news
station, MSNBC.[28] Microsoft created Windows CE 1.0, a new OS designed for devices
with low memory and other constraints, such as personal digital assistants.[29] In
October 1997, the Justice Department filed a motion in the Federal District Court,
stating that Microsoft violated an agreement signed in 1994 and asked the court to
stop the bundling of Internet Explorer with Windows.[30]
Bill Gates handed over the CEO position on January 13, 2000 to Steve Ballmer, an old
college friend of Gates and employee of the company since 1980, creating a new
position for himself as Chief Software Architect.[5][31] Various companies including
Microsoft formed the Trusted Computing Platform Alliance in October 1999 to,
among other things, increase security and protect intellectual property through
identifying changes in hardware and software. Critics decry the alliance as a way to
enforce indiscriminate restrictions over how consumers use software, and over how
computers behave, a form of digital rights management; for example the scenario
where a computer is not only secured for its owner, but also secured against its
owner as well.[32][33] On April 3, 2000, a judgment was handed down in the case of
United,[34] calling the company an "abusive monopoly"; [35] it settled with the U.S.
Department of Justice in 2004.[13] On October 25, 2001 Microsoft released Windows
XP, unifying the mainstream and NT lines under the NT codebase. [36] The company
released the Xbox later that year, entering the game console market dominated
by Sony and Nintendo.[37] In March 2004 the European Union brought antitrust legal
action against the company, citing it abused its dominance with the Windows OS,
resulting in a judgment of €497 million ($613 million) and to produce new versions of
Windows XP without Windows Media Player, Windows XP Home Edition N and
Windows XP Professional N.[38][39]
2006–present: Vista and Cloud
computing
Released in January 2007, the next version of
Windows, Windows Vista, focused on features,
security, and a redesigned user interface
dubbed Aero.[41][42] Microsoft Office 2007, released
at the same time, featured a "Ribbon" user
interface which was a significant departure from
its predecessors. Relatively strong sales of both titles helped to produce a record
profit in 2007.[43] The European Union imposed another fine of €899 million
($1.4 billion) for Microsoft's lack of compliance with the March 2004 judgment on
February 27, 2008, saying that the company charged rivals unreasonable prices for
key information about its workgroup and back office servers. Microsoft stated that it
was in compliance and that "these fines are about the past issues that have been
resolved".[44]
Bill Gates retired from his role as Chief Software Architect on June 27, 2008 while
retaining other positions related to the company in addition to being an advisor for
the company on key projects.[45] Azure Services Platform, the company's entry into
the cloud computing market for Windows, launched on October 27, 2008. [46] On
February 12, 2009, Microsoft announced its intent to open a chain of Microsoft-
branded retail stores, and on October 22, 2009 the first retail Microsoft Store opened
in Scottsdale, Arizona; the same day the first store opened Windows 7 was officially
released to the public. Windows 7's focus was on refining Vista with ease of use
features and performance enhancements, rather than a large reworking of Windows.
[47][48][49]
When Microsoft went public and launched its initial public offering (IPO) in 1986, the
opening stock price was $21; after the trading day, the price closed at $27.75. As of
July 2010, with the company's nine stock splits, any IPO shares would be multiplied
by 288; if one was to buy the IPO today given the splits and other factors, it would
cost about 9 cents.[69][70][71] The stock price peaked in 1999 at around $119 ($60.928
adjusting for splits).[72] The company began to offer a dividend on January 16, 2003,
starting at eight cents per share for the fiscal year followed by a dividend of sixteen
cents per share the subsequent year, switching from yearly to quarterly dividends in
2005 with eight cents a share per quarter and a special one-time payout of three
dollars per share for the second quarter of the fiscal year. [72][73] Though the company
had subsequent increases in dividend payouts, the price of Microsoft's stock
remained steady for years.[73][74]
Financial
Standard and Poor's and Moody's have both given a AAA rating to Microsoft, whose
assets were valued at $41 billion as compared to only $8.5 billion in unsecured debt.
Consequently, in February 2011 Microsoft released a corporate bond amounting to
$2.25 billion with relatively low borrowing rates compared to government bonds.[78]
Microsoft's Online Services Division has been continuously loss-making since 2006
and in Q1 2011 it lost $726 million. This follows a loss of $2.5 billion for the year
2010.[80]
Environment
Microsoft is ranked on the 17th place in Green peace’s Guide to Greener Electronics
that ranks 18 electronics manufacturers according to their policies on toxic
chemicals, recycling and climate change.[81]Microsoft’s timeline for phasing out BFRs
and phthalates in all products is 2012 but its commitment to phasing out PVC is not
clear. As yet (January 2011) it has no products that are completely free from PVC and
BFRs.[82]
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 subsidies regional public transport as an
incentive.[83][84] 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.[85]
Marketing
In 2004, Microsoft commissioned research firms to do independent studies
comparing the total cost of ownership (TCO) of Windows Server 2003 to Linux; the
firms concluded that companies found Windows easier to administrate than Linux,
thus those using Windows would administrate faster resulting in lower costs for their
company (i.e. lower TCO).[86] This spurred a wave of related studies; a study by the
Yankee 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. [87] Another study, released
by the OSDL, 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. [88]
Microsoft "Pac-Man" logo, designed by Scott Baker and used since 1987, with the
1994–2002 slogan "Where do you want to go today?".
A product is anything that satisfies a need or wants and can be offered in the
exchange. A product can be goods, service or idea. Without product, there is no
marketing. This includes product variety, quality, product design, and brand name,
sizes, warranties.
LIST OF MICROSOFT PRODUCTS
Products
1. Bing
2. Internet Explorer
3. Microsoft Advertising
4. All Office products
5. All Windows products
6. Microsoft Security Essentials
7. Windows Live
Business software
1. All Microsoft business products
2. All server products
3. Microsoft Dynamics ERP & CRM
4. Cloud services
5. Bing Maps
6. Microsoft Amalga
7. Microsoft Forefront
8. Microsoft Office Live
9. Microsoft Online Services
10. Windows Small Business Server
Developer tools
1. .NET Framework
2. ASP.NET
3. MSDN Subscriptions
4. Robotics Developer Studio
5. Visual Basic
6. Visual C
7. Visual C#
8. Visual Studio
9. XNA
10. Developer Centers
Entertainment
1. DirectX
2. Microsoft Mediaroom
3. MSN
4. MSN Games
5. MSNBC
6. PC gaming
7. Windows Media Center
8. Xbox home
9. Xbox LIVE
10. Zune
Design & user experience
1. Microsoft Expression
2. Microsoft Silverlight
Hardware
1. All PC hardware
2. Digital communications
3. Microsoft Surface
4. Mouse & keyboard products
5. PC gaming hardware
6. Xbox gaming
Home & educational software
1. AutoCollage
2. HealthVault
3. Money
4. MSN Direct
5. MSN Internet access
6. Office Home & Student
7. Songsmith
8. Streets & Trips
9. Windows Home Server
10. Works
11. WorldWide Telescope
Macintosh
1. All Macintosh products
2. Mac Expression
3. Mac mouse & keyboard products
4. Mac Office
Mobile devices & software
1. Microsoft My Phone
2. Microsoft Tag
3. Mobile software catalog
4. Ultra-Mobile PC
5. Windows Live Mobile
6. Windows Phone
7. Windows mobile devices
Servers
1. All server products
2. BizTalk Server
3. Exchange Server
4. Server trials
5. SharePoint Server
6. SQL Server
7. Windows Server
Microsoft’s Product Mix
Microsoft’s Product Mix –Length
Product-length
The length of a product mix refers to the total number of items in the mix.
Example:
The total Length of Microsoft’s Product mix is 75.
The Total width of Microsoft’s Product mix is 10 (No of lines).
Hence, the average product length is (Total Length / Number of lines) = 75/10
is less than 8.
Product-Depth
The depth of a product mix refers to how many variants are offered of each
product in the line.
Microsoft’s Product Mix-Depth
Name of the Product Variants
Windows Windows 7
Windows Internet Explorer
Windows Phone
Windows Compatibility Center
Windows Help & How-to
Windows Service Packs
Windows Vista
Windows XP
Windows Automotive
Windows Azure
Windows Embedded
Windows Hardware Developers
Windows Media Center
Windows Media Player
Earlier Windows Versions
Windows Downloads
Windows Servers Windows Server
Windows Small Business Server
Windows Home Server
Windows Server Update Services
Windows Live Windows Live Home
Windows Live Essentials
Windows Live Hotmail
Windows Live Mail
Windows Live Messenger
Windows Live Mobile
Windows Live Movie Maker
Windows Live OneCare
Windows Live Photo Gallery
Windows Live SkyDrive
Office All Office products
Home & Student
Office for Business
Office Servers
Office Trials
Office Web Apps
Product Information
BIBLIOGRAPHY
www.google.com
www.microsoft.com