...Introduction In less than 40 years, Microsoft has become a worldwide leader in the field of technology. Today, the company operates on 5 major segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Results of the past three years show that Microsoft has been profitable (+33% on operating income; +20% on revenue between 2009 and 2011). Nevertheless financial reports indicate that each segment has not supported profit equally. Therefore, as the management team, which recommendations for Microsoft could be done for 2012 and beyond for each segment? I. Windows & Windows Live Division This segment of Microsoft offerings consists of multiple editions of the Windows operating system, software and services through Windows Live, and Microsoft PC hardware products. Windows & Windows live division have a very significant impact on Microsoft performance, indeed this segment represent 45% of the total operating income. Even if we can observe a slight decrease on income, between 2010 and 2011, higher expenses in marketing and a decrease on the notebook market explain it. However Windows Division revenue is largely correlated to the PC market worldwide, as approximately 75% of total Windows Division revenue comes from Windows operating system software purchased by equipment manufacturers which they pre-install on equipment they sell. The Operating systems Window 7 and Windows XP have...
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.... ANALYSIS OF CURRENT BRAND POSITIONING AND SEGMENTATION STRATEGIES BRAND POSITIONING Brand positioning is essential to the success of any firm because it delivers a perception into the consumer’s minds which differentiates them from their competitors. Microsoft began to grow their brand over 20 years ago with Bill Gate’s an underlying vision of “a computer on every desk and in every home”. This resulted in Microsoft developing into a huge multinational company with personal computing at the forefront of their business. Microsoft dominated this industry for many years which is reflected in the high brand recognition of Microsoft products worldwide. However, this dominance has slowly evaporated and Microsoft has failed to react to new trends such as the rapid expansion of the Smartphone and tablet industries. It appears that Microsoft’s failure to respond to the market trends can be attributed to an over confidence by Microsoft in their brand positioning while their competitors have been developing software in new dynamic ways and diversifying their products. Microsoft is now presented with a problem. Their vision of “a computer on every desk and in every home” has essentially been achieved and their consumers are now looking to new technologies to satisfy their needs. Microsoft needs to restructure their brand position in order to facilitate this which the public is beginning to see. The announcement that Microsoft’s CEOSteve Ballmer will retire in the next twelve months...
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...Microsoft Strategy 2012 Introduction In less than 40 years, Microsoft has become a worldwide leader in the field of technology. Today, the company operates on 5 major segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Results of the past three years show that Microsoft has been profitable (+33% on operating income; +20% on revenue between 2009 and 2011). Nevertheless financial reports indicate that each segment has not supported profit equally. Therefore, as the management team, which recommendations for Microsoft could be done for 2012 and beyond for each segment? I. Windows & Windows Live Division This segment of Microsoft offerings consists of multiple editions of the Windows operating system, software and services through Windows Live, and Microsoft PC hardware products. Windows & Windows live division have a very significant impact on Microsoft performance, indeed this segment represent 45% of the total operating income. Even if we can observe a slight decrease on income, between 2010 and 2011, higher expenses in marketing and a decrease on the notebook market explain it. However Windows Division revenue is largely correlated to the PC market worldwide, as approximately 75% of total Windows Division revenue comes from Windows operating system software purchased by equipment manufacturers which they pre-install on equipment they sell. The Operating systems...
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...In April 2009, Kristena Louie, program manager for Microsoft Office, must develop a marketing strategy to better reach and engage the college student market. In contrast to Facebook and Google, which excite and engage students successfully, Microsoft is regarded as lacking innovation, aging, and playing a limited role in students’ lives (p.2, Case A). To understand and overcome such negative perceptions, Louie hires a team of expert to study the mindset and technology preferences of students. With the goal of successfully competing in the college students market, Louie must improve Microsoft’s value proposition through establishing short and long-term milestones with the insights of the market research. In the short run, Microsoft should improve its advertisement strategy and cater to the needs of college students by forming partnerships with universities and campus clubs, re-positioning itself toward the innovative spectrum (Ex. A). Besides, an academic search engine specifically tailored for college students should be constructed (Ex. B). This service distinguishes itself with the specificity of materials it offers. Furthermore, Microsoft should incorporate users’ feedback into its design and layout while educating users about the novel features. In the long run, we should supplement Hotmail with social and productivity features that resemble Gchat and Google Drive. Lastly, we recommend the development of a social network, as well as a mobile app in order to appeal...
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...--------------------- Lecturer, MBA Program, BRAC University Submitted By: S. N. S. Date of Submission: 14/08/2013 Case 2.1: Strategy for Competing with Microsoft: Fight or Flight? Question-1: Was it ethical for Microsoft to force users of its Windows operating system to use its internet browsers as well by bundling the programs together and preventing PC manufacturers from making other software available to computer buyers? Was Microsoft’s behavior toward its rivals ethical? Why or why not? Answer: By bundling its internet browser and other programs together Microsoft was forcing its buyers to use their browser Internet Explorer and other programs like Windows Media Player. It was also preventing other PC manufacturers from making similar software which the users could have used as a better alternative to the Microsoft software. As the programs were bundled together, the users were forced to pay for the software they didn’t want to use and they were not allowed to choose other software though they were better alternative than the Microsoft programs, some of these programs were open source and free of cost.As we know that consumers have four types of right and under “The Right to Choose” users should have the right to choose any program they want, not the internet browser of Windows operating system. So it was unethical for Microsoft to force users of its Windows operating system to use its internet browsers as well by bundling the programs together and preventing...
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...Microsoft-Nokia Deal Microsoft took a bold move on 3 September 2013 that could change its view completely. Microsoft wants to recreate itself as a company that offers ‘devices and services’ and it has a built an important step towards that direction. Board of directors of both companies decided to take part in a transaction that will see Microsoft purchasing all devices, patents, licenses, and service businesses owned by Nokia. Microsoft made this move in line with their partnership promise made in February 2011 as well the increasing popularity of Nokia’s Smartphones. This acquisition, unified branding, increased synergies, and faster innovation will allow Microsoft to grow its profits and share in small devices. On the other, this transaction will allow Nokia to gain better sales, a strengthened financial standing, and a solid foundation for forthcoming investments. The transaction, under the agreement made between the two companies, will cost Microsoft a total of $7 billion. Microsoft hopes to draw cash from its foreign resources to fund this transaction, which forecasts purport will close in 2014’s first quarter. However, shareholders from Nokia’s side, regulations, and other conditions may affect the transaction closure dates. Although Microsoft will bring Nokia, its design, manufacturing rights, and distribution privileges into its fold, it will not submerge all aspects of Nokia. More specifically, this transaction involves Nokia’s Smartphones and devices unit. This unit...
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...Yahoo! 야후는 인터넷 검색과 네비게이션의 선구자로서 가장 잘 알려진 온라인 브랜드 중 하나이다. 야후는 세계에서 가장 큰 웹 포털이자 구글 다음으로 유명한 검색엔진 이였다. 이 회사는 종합 뉴스와 엔터테인먼트를 거대한 온라인 서비스에 버무려, 3억 4,500만명의 사람들을(15가지 언어, 20개 국가) 자신의 사이트로 끌어 모았다. 닷컴 붕괴에 이은 세계경기 침체 이후로, 야후는 유료 컨텐츠와 서비스를 접목함으로써(mix) 수익원을 다양화 하였다. 무료로 제공하는 가입자에 대한 개인화 웹 페이지와 메일 및 메시지 보드를 제외하고, 야후는 게임, 뮤직과 같은 프리미엄 유료 서비스구독료와 광고만으로 수익을 냈다. 더 나아가 야후는 유료(?)(fee-based) 온라인 마케팅과 다른 상용 서비스를 제공하였다. 예를들어 야후는 검색 마케팅을 활용한 검색결과 리스트 와 타겟 광고(targeted advertisement), 그리고 Yahoo! HotJobs 를 통한 job listing services를 판매했다. 여기에 더해 소규모 비즈니스를 위한 웹 호스팅 서비스와 상업 서비스를 제공하고 있다. 온라인 서비스 외에도, 야후는 다양한 이동통신회사들과의 파트너십을 통해 branded internet access 를 제공하고 있다. (eg, SBC Communication, Verizon in US; BT Group in the UK, Rogers Communications in Canada). 온라인 광고 시장의 성장이 계속 되면서, 야후는 구글과 MS의 MSN의 도전에 직면했다. 특히, 구글은 고객들을 끌어들이기 위해 다양한 무료 웹서비스를 제공하면서 파죽지세로 검색시장을 차지해 가고 있다. 비록 야후와 구글에 뒤처져 있지만, MSN도 검색 기반의 광고 프로그램을 런칭했다. 이러한 위협에 대응하여 야후는 그들만의 콘텐츠를 만들고 메이저 스튜디오와 컨텐츠 파트너십을 구성하기 위해서 ABC 텔레비전 프로그램 전 국장인 Lloyd Braun을 끌어 들였다. 거기에 더해 야후는 2003년에 Inktomi를 인수함으로서 그들의 검색기술을 발전시켰다. 또한 같은 해에 인수한 온라인 마케팅 기업인 Overture는 그들에게 거대한 광고 수익을 안겨주었다. 야후는 인수를 통해 그들의 웹서비스 포트폴리오를 계속해서 강화하였다. 예를들어 사진 공유 웹싸이트인 Flickr, 인터넷 전화 서비스를 제공하는 Dialpad Communications, 그리고 애플 컴퓨터의 iTunes 서비스, Napster와 경쟁하는 온라인 음악 다운로드 서비스를 제공하는 Musicmatch를 인수하였다. 야후는 수익의 약 4분의 1을 글로벌 시장에서 걷어들일 정도로 그들의 글로벌 영역을 넓혔다. 특히 유럽의 비교 쇼핑 서비스인 kelkoo와 중국 검색 싸이트인 Yisou.com을 인수했다. 2005년 중반에는 중국 최고의 전자상거래 기업인 Alibaba.com를 주식 40% 10억불에 인수했다. 이 새로운 파트너십에 의해서 Alibaba...
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...Core components of strategy implementation: * Strategic decision-making * Organizational evolution and change * Management by Objectives * The role of teams and leaders * Knowledge assets Lecture 1 The Eclectic Roots of Strategy implementation Research Views on strategy implementation: Structural view: * Organizational Structure * Control mechanisms (assessing performance during and after the implementation of the strategy – Role of formal control systems in strategy implementation Interpersonal Process View * Strategic Consensus –external consensus also imp ---TATA NANO * Autonomous Strategic Behaviours * Diffusionary Processes * Effects of leadership and Implementation Styles * Communication and other Interaction processes The secrets to successful strategy execution: * Study – Important strategic and operational decisions aren’t quickly translated into action * Execution is the result of thousands of decisions made every day by employees acting according to the information they have and their own self-interest * 4 fundamental building blocks executives can use to influence those actions (17 traits fit into each of these blocks) * Clarifying decision rights - Everyone has a good idea of the decisions and actions for which he or she is responsible * Designing information flows (Important information about the competitive environment gets to headquarters quickly. The way to ensure that...
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...Core components of strategy implementation: * Strategic decision-making * Organizational evolution and change * Management by Objectives * The role of teams and leaders * Knowledge assets Lecture 1 The Eclectic Roots of Strategy implementation Research Views on strategy implementation: Structural view: * Organizational Structure * Control mechanisms (assessing performance during and after the implementation of the strategy – Role of formal control systems in strategy implementation Interpersonal Process View * Strategic Consensus –external consensus also imp ---TATA NANO * Autonomous Strategic Behaviours * Diffusionary Processes * Effects of leadership and Implementation Styles * Communication and other Interaction processes The secrets to successful strategy execution: * Study – Important strategic and operational decisions aren’t quickly translated into action * Execution is the result of thousands of decisions made every day by employees acting according to the information they have and their own self-interest * 4 fundamental building blocks executives can use to influence those actions (17 traits fit into each of these blocks) * Clarifying decision rights - Everyone has a good idea of the decisions and actions for which he or she is responsible * Designing information flows (Important information about the competitive environment gets to headquarters quickly. The way to ensure that...
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...CORP STRATEGY PLAN FOR MAKERBOT CORP SEPTEMBER 8, 2014 This memorandum is aimed to highlight a few important strategies Makerbot needs to adapt that would help it in creating a revolution in the 3D desktop printing space which would result in an increase in the market share and total revenue which would subsequently make Makerbot an undisputed leader in the 3D Printing space and place themselves in a winning position. The company has to focus on their core strength and work towards targeting a larger customer base and affordable printing solution with unparalleled innovation as the main driving force resulting in a substantial advantage in the competitive landscape of 3D printing. To begin with, Makerbot should adopt the Microsoft model for business. Microsoft always believed in the licensing model for its software services (Windows & office software suite) which is the biggest revenue generating factor for the American Multinational. Makerbot should venture into a licensing model for its software. If the end user experience is good, reliable & affordable, there is no reason why Makerbot as an OEM would not enter into the league of high performance players in the 3D printing market space. The best always comes from the best resources and Makerbot, as always, should invest time and energy to recruit the best in the business and develop the OS which would not only exceed expectations but would attract higher customer base and cash revenues. Windows division in Microsoft has been...
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...advantage to Microsoft of outsourcing Xbox production to Flextronics? The strategic advantage to Microsoft of outsourcing Xbox is to manage manufacturing and logistic capabilities to make the Xbox itself and to manage a global supply change. Flextronics also sells computer hardware and the products represent a much smaller part of the company’s overall revenues. When taking into consideration whether to manufacture the Xbox in house or to outsource, the company chose the latter strategy. Microsoft was able to continue to focus on its core business while allowing another company, Flextronics, which has expertise in managing a global supply chain to control production. 2. What were the risks associated with outsourcing to Flextronics? Did Microsoft mitigate these risks? Do you think Microsoft would have been better off making the Xbox itself? The risk associated with outsourcing to Flextronics is the company makes the decision to outsource; it gives up control over the production process. Some of the risks also included a suitability, quality, and so on will become the responsibility of another company. Microsoft decided to outsource Xbox production; the company chose to work with Flextronics, which it had a long history with. Microsoft would not have been better off making the Xbox itself because in the long run the jobs can stimulate the economy and its easier to control a plant when you’re watching it grow. 3. How did Flextronics’ industrial park strategy enable the...
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...four basic elements: environmental scanning, strategy formulation, strategy implementation, and evaluation and control (Wheelen & Hunger, 2010). This paper examines these elements, why this process is important, and discusses the strategic management process of Microsoft Corporation. Environmental Scanning Environmental scanning involves an in-depth analysis of the factors that can affect the goals of the company (Clayton, 2013). This information is disseminated to the key people within the company and is often conducted through SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. The strengths and weaknesses form the internal environment of the company and look closely at the company’s structure, resources, and culture; whereas, the opportunities and threats are the variables that comprise the external environment (Wheelen & Hunger, 2010). Strategy Formulation Once the opportunities and threats have been analyzed, long-term plans for their effective management are formulated. It is within this step that the company’s mission is clearly set to achieve the desired objectives (Wheelen & Hunger, 2010). During this stage, any issues are prioritized prior to the development of the strategy, and contingency plans created. Economic environments are continually changing; therefore, these alternative approaches should be built into the strategic plan (Clayton, 2013). Strategy Implementation Strategy implementation is the action phase of the strategic...
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...striking competitive dynamics, particularly in sectors that spend the most on IT. Some of the competitive dynamics models include the Destroy Your Business (DYB) strategy, the Grow Your Business (GYB) strategy, the Information System (IS) and strategic advantage, and the social business strategy. (pg. 31) The Destroy Your Business (DYB) strategy is used to identify what weaknesses your company has. With DYB, you put your employees in the position of the rival companies to figure out weaknesses you may have or advantages you may have against them. By using the DYB strategy you completely disrupt all current practices. Once the weaknesses are determined, you use what you learned to better serve your customers or for better words, Grow Your Business (GYB). (Pearlson, K. E., & Saunders, C. S., 2013 pg. 32) Companies use the GYB strategy to expand their businesses. The company comes up with ways to reach a broader audience and to improve the relationship it has with its current audience. According to Pofeldt, (2011): there are 6 strategies used today to grow your business. The 6 strategies are to go after recession-resistant clients, to try international markets, to use valuable freebies to hook customers, don’t wait around for the banks, to invest in talent and to stay ahead of the trends. (Oct. 19) With the strategy to go after recession-resistant clients, you are making wealthy people your core audience. More now than ever, many companies are moving out of the country. That...
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...By this time next month, there will have been the usual sudden year-end jump in ownership of Kindles, thanks to the season of gifts. If book industry analyst Mike Shatzkin is to be believed (and I believe him) the sales at retail bookstores will have fallen by about 10% by this time next year. Physical retail book stores have been seeing an annual doubling in revenue reduction percentages ever since the Kindle was introduced. Shatzkin writes: One bookstore owner I know has been doing a great job; the store held its own despite the overall slide in print. The bookseller told me that this year, through October, sales at the store were down 5%. Not bad. They were down 2% year-on-year last year. They were down 1% year-on-year in 2009. And they had a record year for sales in 2008. There’s a pattern there. The percentage reduction is doubling each year. When I said, “so you’ll be down 10% next year and 20% the year after that, right?” Bookseller said, “probably.” If you are an Amazon watcher, there are patterns like this everywhere. The company is nothing if not deliberate and systematic in everything it does. When unexpected things happen, Amazon, unlike most companies, does not immediately respond with knee-jerk PR damage control. As Bezos said during an interview a while back, the company is willing to be misunderstood and endure temporary PR blowback. The larger gameplan is too important. Which is why the current furor over the price comparison app, and the related...
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...to do strategy In the early 1990s, the Allegheny hospital education and research foundation (AHERF) launched a strategy to become a large integrated health care delivery system. AHERF was not the only health care provider pursuing this strategy. In fact, this was the dominant strategic direction proposed by industry an-alysts and managers alike. Within a few years, AHERF was one of the largest integrated health care providers in the United States and its CEO was hailed as a visionary. By 1998, AHERF was also bangkrupt. In the early 2000s, Sumsung Corporation launched a strategy to revitalize its consumer video electronics business. Long regareded as a low- quality brand, it sought a quality leadership position in the fledgling market for digital home entertainment, including high definition television (HDTV). Samsung embraced digital light processing (DLP) technology. Cheaper and fatter than plasma, more expensive and thinner than traditional rear projection televisions (RPTVs) , Samsung’s DLP televisions offered a picture quality that equaled or beat either alternative. Samsung’s first generation DLP sets garnered rave reviews from speciality magazines and web sites. The technology appealed to critical early HDTV adopters who did their research and ignored the brand reputation. In fact, samsung’s reputation has improved since the launch of DLP. It has successfully entered the market for high-end plasma market. It takes little imagination to come up with a strategy. In fact...
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