Microsoft Corporation is a technology company developing software for personal computers, mobile devices, web applications, and video games. Today, Microsoft tends to be dominating the world and the leader in various industries. The company is listed in the Fortune 100, and it has an impressive portfolio of global operations, resources, alliances, critics, and consumers. Microsoft creates technology that does support the ways that people work, communicate, and play in a wide range of computing devices. The company generates its revenue through developing, licensing, and supporting a range of software products and services.
According to Bill Gates, the vision of the company is creating innovative technology, which is accessible to everyone and one that adapts to every person’s needs (Microsoft, 2016). With accessible technology, it tends to eliminate the barriers for people with disability and enables individuals to take the full advantage of their capabilities. As of 2015, Satya Nadella identified the vision statement as empowering every person and every organization on the planet to achieve more.
The mission of the company is to enable people and businesses across the world to realize their full potential. Microsoft normally considers this mission as a commitment to its customers. Thus, the company ensures that it delivers on that commitment through striving to create technology which is accessible to everyone of all ages and abilities.
Objectives and Goal
Innovation tends to be the goal of the company. Microsoft normally builds the company based on innovation and delivery or products that are on demand and new. So as to achieve its goal, the company tends to accept some of the risks in following its vision and working towards building leading products that tend to command profit margins (Microsoft, 2016). In the way of achieving this goal, Microsoft tends to encourage innovation through reducing complexity in the technology accessible development. Participating in research and development is also a way that the company uses to achieve its goal as the company involves in accessibility-related research and development projects.
Microsoft tends to use different strategies. Some of the strategies used include making the computer easy to see, hear, and use through building accessibility into the Microsoft product (Global Data, 2015). It is an action that the company considers so as to help gain sales and the market share through lower prices, more appealing design, more performance features, and better quality or customer service. The company also ensures continuing its long-standing commitment and leadership in accessibility research, innovation, and awareness (Global Data, 2015).
Another strategy is facilitating the next generation of accessible technology and then moving the industry forward using groundbreaking technologies. So as to achieve the vision and mission, Microsoft ensures that it build a strong and collaborative relationship with the wide range of technology partners and organization so as to raise awareness on the significance of accessibility in meeting the technology needs of those people with disabilities. Such strategy aims at strengthening competitiveness through collaborative partnerships and strategic alliances.
Microsoft industry is highly competitive and dynamic. The industry tends to experience frequent changes in technology and business model. With each industry shift, it is an opportunity for conceiving new technologies, new products, or new ideas that may transform the business and the industry. Microsoft normally focuses on pushing the boundaries of what is possible through the wide range of research and development activities that aim to anticipate the changing industry trends, customer demands, and competitive forces (Global Data, 2015). In the enterprise software industry, there is a considerable rivalry, which is affected by the concentration of competitors, product differentiation, price differentiation, and diversity of competitors.
The threat of new entrants in the industry is also low because of various factors. The capital requirement for entering the industry is very large, and cost of designing and developing enterprise software tend to be extremely high. Another factor impacting new entrants are that companies in the industries have already achieved economies of scale; hence, reducing the potential profit that the new entrant may obtain. In the industry, the threat of substitute is low. There are very few substitute products that do compete with the enterprise software. The enterprise software tends to be more scalable, flexible, and even less expensive than older types of solutions (Jones & Hill 2009). Therefore, the near absence of modern substitutes in this industry is an excellent sign for companies in the industry. In the industry, there is low bargaining power of suppliers because there are very few suppliers with who companies must negotiate. The buyers bargaining power is also low because the concentration of buyers tends to be growing quickly. Another reason is that more companies are deciding that the enterprise software is a necessity for business. Hence, they are willing to pay the going rate. The low bargaining power of buyers is also as a result of the fact that there is high switching cost from one supplier to the other because of the high cost of related infrastructure for the systems.
The strength of Microsoft is reputation and brand loyalty. For a long period, Microsoft has been the leading OS and software provider. Because of this, there are few other brands that can compete with Microsoft. The Microsoft brand is the 5th most valuable brand across the world, and the brand reputation leads to the greater market share and higher sales (Gupta, 2009). The company also has the strength of being the easy to use software. Some of its products including its flagship Windows operating system tend to be popular because of the great quality and the decades of experience the company has put in its development.
A major weakness for the company is the dependence on hardware manufacturers. Microsoft tends to be a big software corporation; however, it does not produce its hardware; hence, depending on computer hardware manufacturers in developing products that do run Windows. There is also the weakness of slow innovation. When considering the company, it has huge research and development resources and also in a great position of entering new markets with innovative products. However, Microsoft has failed in doing so and as a result; it is missing a lot of opportunities in the market allowing its competitors such as Apple to capture the market share.
There are several opportunities available for Microsoft. The mobile advertising is a market that is expected to grow in the next years, and the company tends to have a great opportunity of tapping into the market with its mobile OS (Gupta, 2009). Another opportunity available for Microsoft is growth through acquisition. Microsoft can start acquiring new startups that will bring new skills, technology, and competencies to the business.
A major threat to the company is the intense competition in the software products. Competition has been growing via the web 2.0 technologies (Gupta, 2009). Microsoft tends to be under the pressure of introducing successful OS for both mobile and PC markets such as competitors like Apple. There is also the threat of numerous court battles with other firms regarding developer software lawsuits and antitrust. Microsoft has been receiving a lot of lawsuits, and they are expensive requiring money and time. It is necessary for Microsoft to observe its operations because failure can lead to having more expensive lawsuits in the future.
IT related project that Microsoft can consider is expanding into the video game market. The video game market tends to be more lucrative than the movie industry. It is necessary that Microsoft should consider expanding into this market and make use of the new technology available in the market. Microsoft entered the market with a first generation product, Xbox; however, it should place more focus on building a bigger and better version of the product (Jones & Hill 2009).
Another IT project that the company can consider is funding research and development in universities so as to encourage innovation. The project that I would recommend Microsoft to implement is to fund research and development in universities. Microsoft should make a significant investment in research and development in schools as a way of encouraging innovation. With the innovation ideas of the students, Microsoft can benefit from these skills to develop new products and even improve the existing products. Investing in universities ensures that the company is looking beyond the immediate product consideration to the opportunities available in the future.
Global Data (2015). Microsoft Corporation: financial and strategic analysis review.
Gupta, S (2009). Branding and advertising. Global India Publications
Jones, G & Hill, C (2009). Strategic management theory. Cengage Learning