BCG MATRIX &

STRATEGIES OF
MICROSOFT
Muhammed Farsad
•Microsoft Corporation is an American technology company. It’s headquarter
is located in Redmond Washington USA. It was founded by two friends, Bill
gates and Paul Allan; on April 4, 1975, in New Mexico. Microsoft operates in
multiple industries which are as follow, computer hardware, computer
software, digital distribution and consumer electronics. The foundation of the
company was built on, developing interpreting system for Altair 8800,
eventually, company became market leader in computer operating system
developing industry. Unfortunately, company has lost its market share to
android in operating system industry. Some of the operating systems
developed by Microsoft are, Windows 7, Windows 8.1, Window xp, window8,
window Vista and others. Windows 7 was a big success on the part of
Microsoft, in operating system industry. 2009-2015 windows 7 seized the
highest market share compare to, Microsoft other operating systems.
Presently, Apple and Google are the core competitors of Microsoft in
operating systems. Moreover, Microsoft Corporation operates in gaming
industry, X-box and other complementary product and software related to
the product is also the creation of company. 2015-2016 Microsoft bought two
eminent companies LinkedIn and Skype technologies.
•Microsoft Corporation is an American technology company. It’s headquarter
is located in Redmond Washington USA. It was founded by two friends, Bill
gates and Paul Allan; on April 4, 1975, in New Mexico. Microsoft operates in
multiple industries which are as follow, computer hardware, computer
software, digital distribution and consumer electronics. The foundation of the
company was built on, developing interpreting system for Altair 8800,
eventually, company became market leader in computer operating system
developing industry. Unfortunately, company has lost its market share to
android in operating system industry. Some of the operating systems
developed by Microsoft are, Windows 7, Windows 8.1, Window xp, window8,
window Vista and others. Windows 7 was a big success on the part of
Microsoft, in operating system industry. 2009-2015 windows 7 seized the
highest market share compare to, Microsoft other operating systems.
Presently, Apple and Google are the core competitors of Microsoft in
operating systems. Moreover, Microsoft Corporation operates in gaming
industry, X-box and other complementary product and software related to
the product is also the creation of company. 2015-2016 Microsoft bought two
eminent companies LinkedIn and Skype technologies.
• Question Mark
• Those segments are included into the category of
Question mark which have low relative market share
and operate in high sales growth industry. Microsoft
Phone hardware segment comes into the category of
question mark, following products are manufactured by
Microsoft in mentioned segment; Lumia and non-Lumia
phones. When android phones were introduced most of
the customers of windows cell phone switched to
android which almost occupied the market share of
Microsoft Lumia. In the current scenario Microsoft
should use product development strategy to increase
its market share and turn this segment into star.
• Stars
• Stars are those segments which have high market
share and compete in high sales growth industry.
Device and consumer segment of Microsoft Corporation,
can be counted amongst the stars segments. Windows
Operating systems and word processor (MS office),
Mobile application and windows related software
products and services are included in the mentioned
segment. Apple and Google are the competition of
Microsoft in D&C segment. Market development and
product development strategies are suggested for stars
segment according to BSG matrix.
• Cash Cows
• Microsoft computing and Gaming segment can be included into
cash cow category. Cash cows are those segments, which
operates in low sales growth industry but have high market
share. Such segments are viable for companies to sustain its
financial position for long term. Xbox one and Xbox 360 holds a
big chunk of market share in gaming industry but yet Sony is
the market leader in video game industry. Horizontal
integration can help the corporation to grab largest market
share in the industry. Microsoft computing and Gaming
segment comprise of the following products and services,
consoles of gaming and entertainment, royalties of second
and third party video games, live subscription of Xbox platform
devices and accessories, accessories of Microsoft PC.
• Dogs
• It is fortunate for Microsoft that, none of its
segment fall into the category of dogs. Dogs
are those segments which compete in low sales
growth industry and have low relative market
share. Such segments are liability on the
organization. Liquidation strategy is suggested
by BCG matrix for such segments