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B2B Assignment: Microsoft
B2B Assignment: Microsoft
MICROSOFT
Submitted By,
Medha Sur
Enrolment No: 20BSP3117
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ACKNOWLEDGEMENT
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TABLE OF CONTENTS
Microsoft is leading computer technology corporation in the world and Microsoft has
some opportunities in the market to preserve its position such as good reputation of
the brand and huge assets in terms of financial, human and technology; however, they
have many strong rivals against their units. This paper aims to identify the problems
and challenges which are faced by the Microsoft Corporation; and to describe the
most appropriate strategy which responds the indicated challenges.
Both quantitative data and qualitative data are the main sources that I am going to
utilize in order to reach to the result. The main objectives are to indicate the rivals of
Microsoft Corporation and analyze their competitive strategies, and to describe what
Microsoft can offer to their customers as the new technologies as an alternative.
3. HISTORY
With the possible exception of the earliest pioneers of Silicon Valley, such as IBM,
Xerox, and Bell Labs, it’s hard to think of a company that has had a more profound,
lasting impact on the world of technology than Microsoft.
Microsoft continued to grow throughout the late 1980s. In 1989, Microsoft released
the first iteration of Office. This further cemented Microsoft’s position as the
dominant business software company in North America. However, while Office was
a crucial product release for Microsoft, the company had overlooked a critical
aspect of the home computing market it would struggle to conquer for the next
decade—the internet.
Microsoft may not have the kind of reputation that newer companies like Google
and Facebook enjoy. It does, however, occupy a truly unique place in the history of
computing technology. Without Microsoft, the world would look, feel, and work a
lot differently than it does today—and Bill Gates’ relentless drive to succeed was a
driving force behind his company’s incredible growth and longevity.
Under Satya Nadella’s watchful leadership, Microsoft emerged from one of its most
challenging periods to finally become the 21st-century technology company it has
always promised to be. The company’s future is far from guaranteed, however, and
Nadella will have to continue challenging his company to do better and be better if
his company is to succeed.
At Satya Nadella’s Microsoft, it seems that quality may finally be more important
than quantity.
4. SITUATION ANALYSIS
MARKET SUMMARY
Market Demographics:
The aspects of age, size, and occupational perceptively directly affect Microsoft
Company and its competitors. For instance, the primary competitors such as Google,
Oracle, and SAP IBM have products that are designed to serve the same population as
Microsoft. This means that Microsoft has to package its products in a better way to
ensure market sustainability in the midst of these competitors that sell products that
perform similar functions to the same population.
The products are promoted through online and offline advertisements, series of
discounts to loyal customers and corporate users, referrals from distributors, and
strategic customer relationship management within its 24/7 customer care center. The
online marketing is ideal in software products since many customers have an access
to it.
4.2.SWOT ANALYSIS
4.2.1. Strengths
Vast market reach – Microsoft operates in more than 190 countries worldwide.
After launching the promoted version of Windows 10, it has over 700 million installs
worldwide.
Constant growth – The latest earning results of Microsoft clearly demonstrate its
strong growth in the cloud business. According to the analysts, Microsoft will be
worth $1 trillion in the near future.
Addition of newer SKUs (Stock Keeping Units) – Microsoft has recently added
newer SKUs to its brand portfolio. This includes Microsoft 365 combining Office
365 and Windows 10. Its M365 is a multi-billion-dollar business.
Reputed Brand with superior customer loyalty – Microsoft has 1.2 billion Office
users and 60 million Office 365 commercial customers. It has undoubtedly the
greatest loyal customer base. Customers trust the brand and remain loyal to it.
Effective Adverting platform – With its strong and effective marketing strategies,
Microsoft has influenced people all over the world. Its emotive advertisement aired in
July with the title ‘The future starts now’ touched many worldwide.
Brand reputation – Microsoft was ranked 4th by Interbrand as the world’s most
valuable brand with the highest brand strength and brand equity in the digital
industry.
Easy to use software – Microsoft is known for its hi-tech and quality products
offerings. Windows OS and Office software products are quite user-friendly with
highest quality standards.
4.2.2. Weaknesses
Weaknesses refer to the areas where the business or the brands needs
improvement. Some of the key weaknesses MICROSOFT are as
follows:
Lacking innovation – Microsoft has been failing to grow its hardware products
sales such as surface pro computers and phones. It has been lagging in innovation
and advanced technology, whereas, Apple, Google, and Amazon are quickly blazing
trails.
4.2.3. Opportunities
Cost leadership strategy – Microsoft can gain the opportunity of increasing its
sales and revenue by offering its products at low prices. It may also prevent the
hackers to use its software illegally.
4.2.4. Threats
Threats are those factors in the environment which can be detrimental to the
growth of the business. Some of the threats include:
Open source projects – Like Linux OS and Open Source Office, many new open
source projects have successfully entered into the market offering similar services
for free. It can threaten Microsoft that offers these products at an expensive rate.
Cybercrime and piracy – Rising cybercrime thefts and software piracy issues
have dramatically affected Microsoft’s security network system.
Brand reputation: The company has a very strong brand image as one of the
leading providers of different technology-based products and software vendor
services. This means that Microsoft agents and distributors find its product as
appealing and easy to sell through self-marketing.
Strategic research and new product development: The vendors and distributors
of Microsoft products are always advantaged when compared to their competitors
due to the ability of Microsoft to reinvent and create new products that appeal to
the market.
Competitive pricing: Microsoft offers several discounts and after sales services to
distributors and vendors, thus, increased profits in the distribution chain.
Expansive target market: Since the products of the company are targeting the
global market, distributors and marketers find it easy to sell them because they are
easily available.
4.4.KEYS TO SUCCESS
Founded more than 30 years ago, Microsoft has expanded way beyond software
and devices into cloud computing and services.
For people of a certain persuasion, it’s fun to make fun of Microsoft. It's outdated
and occasionally bloated software. An operating system version so despised that
most users refused to upgrade from its predecessor and instead waited for its
replacement.
A browser that once held 95% of world market share, no longer leads in any
country. And mobile phones that barely register in a universe dominated by
iPhone and Android.
That popular opinion derives from a false assumption: that a new product line
with frequent updates is the surest path to success in the technology sector. Not
true. Take Surface, Redmond’s answer to Apple’s iPad.
It isn’t the kind of product that makes nor breaks a company with the power and
magnitude of Microsoft. Rather, it’s a way to stay relevant in the consumer
electronics market of course, the idea is for Surface to create enough profit to
justify the expenses behind it, but a couple million satisfied Surface owners have
only a minimal effect on Microsoft’s net profit numbers.
The same goes for the formidable Xbox, whose sexiness as a gaming console
vastly outweighs its contributions to Microsoft’s overall financial picture.
4.5.MACRO ENVIRONMENT
Political forces
Most of the markets where Microsoft and its major competitors operate are
relatively politically stable. This means that Microsoft has an opportunity to build
strong and sustainable distribution network with company agents across the globe.
However, the current political uncertainty in some part of Africa and the Middle
East is threatening the distribution of Microsoft products among its agents.
Ecological forces
Socio-cultural forces
The global business arena consists of dynamic markets that Microsoft and its
competitors carefully penetrate in order to survive the swings in the business
environment. Besides, Microsoft must define and create a unique market in terms
of product benefits to compete with other businesses such as Oracle and Google,
which are well established in this market. However, the effect of socio-cultural
forces is low since the companies within global PC industry have more or less
similar products and business approach.
Technological forces
Companies within the global PC industry such as Microsoft, Google, and Oracle
among others have invested heavily in the latest technology in order to have a
sustainable business platform, in terms of distribution, market penetration, and
ethical aspects of secure technology. Microsoft and other competitors have to
invest heavily in research and development to avoid being in a position of
operating obsolete products that have been surpassed by technological
metamorphosis. At present, Microsoft is one of the leading businesses in
technological application way above most of its competitors such as Google and
Oracle.
Economic forces
The stable economic environment in the US and other major markets targeted by
Microsoft and its competitors such as Oracle and Google have created ideal
climate for business expansion and profitability However, the current economic
challenges in the US and other parts of the world are threatening the profitability of
businesses with the PC and technology related industries.
Market: Microsoft is growing rapidly with the growth & challenges of the
industry. Companies in this industry are outsourcing the services from the
developing nations in order to decrease their cost of operation. While client side
have bargaining power due to the presence of large no. companies in the market
with similar offerings
5.3. Segmentation:
5.4. Targeting
The major turnover for Microsoft is not through hardware but Software. With its
unbeatable operating system – windows, Microsoft is present across the globe.
Not only the OS, but softwares like Microsoft office, Microsoft visual studio, the
Bing search engine, web developing software, office applications, business
management softwares and what not. Microsoft is present in a huge plethora of
products and it has a product for practically most applications including
design, development and management. Microsoft is so strong in this front that till
date, no one has been able to challenge the giant in terms of software expertise.
Even Apple sells its OS with support of its hardware, and not just on the basis of
Software.
The most benchmark products for which Microsoft is known across the globe are
Microsoft Windows
Bing
Microsoft visual studio
Skype
Internet explorer
Microsoft office
Xbox
Microsoft Games
There are certain brands and names, which are just beyond the logics and points
of promotion and are simply too popular for promotion. Still Microsoft has a
certain amount of promotion, which is mainly used for its premium products
which have a large share of the market. Or on the other hand, the promotions are
used for products which are in high competition segments like the Nokia lumia
phones which are a collaboration between Microsoft and Nokia. For other online
products, Microsoft vastly uses digital marketing and advertising. In general, the
promotions of Microsoft have always pushed for reliability and usability of the
Some of its campaign like “Get the facts”, Scroogled and many others had
helped the company in increasing the brand visibility further.
With the emergence of the Hi-tech culture and technology, companies are
creating innovative products & services tailored to the user’s requirement. This
high acceptance of technological products is making this industry like a hot
cake. IT companies around the world are fighting hard to take the leadership
position. Google is the biggest rival of Microsoft.
5.10 Microsoft Customer Relationships.
Microsoft has about 160 million customers all around the world. This number
includes individual customers, small-sized and medium-sized organizations,
enterprises, government institutions, educational institutions, Internet service
providers, application developers, etc. The Company has different operation
canters, which are located in Ireland, Singapore and some of them located in the
USA.
Feedback tools
Microsoft Customer Service and Support is a phone line that operates from every
part of the world. Microsoft together with the Global Support Services website
(http://support.microsoft.com), are one of the largest support networks in the
industry. Microsoft Fix It Solution Centre gives access to the support experience,
self-help tips, recommendations etc. It includes the Fix It Button, which provides
one-click solutions to common customer issues.
6. CONCLUSION
Microsoft owns some characteristics to B-to-B Marketing, such as the close
relationship between the company and the customers (co-operation approach and
not just transactional approach), the diversified and technical products, and active
buyers.
However, the contradictory with the B-to-B marketing is that there are a lot of
customers all around the world, thereby is not so common in this area (B-to-B
marketing).
The unique selling proportions for Microsoft are competitive pricing, compatible
services, and high-quality products. The company targets users of computer and
mobile phones across the globe. The company uses multiple-product branding to
reach these customers. The company’s products are technology-based and created
through series of research to meet the needs of customers looking for product that can
suit their lifestyle.
Hence, these are the things which Microsoft use for a b2b marketing and hence this
report includes each and every detail.