Internal environment factors that influence Microsoft
“The internal environment focuses on the strengths and weaknesses of a company, which give them a certain advantages and disadvantages in meeting the needs of its target market.”(studymode.com)
The Microsoft ability to operate across different cultures in a highly globalized market world is an important competitive advantage that has generated capability to successfully enter in to foreign markets without negative effects. The company is also using cross-cultural teams to increase efficiency and to effectively face external challenges.
The strong brand recognition among target costumers helps Microsoft in launching new products in the market. The company has a highly intellectual workforce leading to new ideas being bounced and incorporated in the production process, fostering innovation and with the streamlined production process, creates successful products and generates more revenues by releasing newer version of each product.
“However, Microsoft has not been able to bring a new product in the market in the last decade that dominated the market place. The company successfully forayed into the entertainment segment with launch of X-Box but it is sharing leadership with Sony and Nintendo in that segment. Thus, new product development seems to be a major weakness for the company. This weakness would keep increasing in importance as company's old products lose revenues or market share.”(UKEssays, 2015)
There are also
Microsoft has their dominance of the industry at stake. They could potentially come out on top if left to continue their current tactics. They are masterfully “marketing their products” and it is paying off for them (Love, 1997).
They have expand their business from only on computer software and hardware to online search engine, home gaming devices and smartphone, those business are the popular business in the world, Microsoft is trying to adapt the new market.
Microsoft’s approach of creating competition also increases both the variety and the availability of their PCs. PCs can be found almost anywhere that sells other electronics. Each PC manufacturer produces their own configurations. Each retailer sells at least a few exclusive PCs. The end result is many different PC options for the consumer.
As a result of the wide spectrum of products Microsoft offers, they communicate to a wide customer base. The company has implemented successful brand and communication strategies throughout their range of products which vary across software, entertainment, devices and gaming etc. The modern media mix typically used by Microsoft includes television campaigns and the internet to generate reach, mobile to drive engagement and social media to spark conversations and generate virility. However, in contrast with the other sectors they operate in Microsoft holds a smaller market share in the smartphone and tablet industries. This means that Microsoft needs to implement branding and communication strategies that focus on gaining new customers rather than
Microsoft has grown into an enormous and powerful corporation by a combination of aggressive business practices and having written operating systems (DOS and Windows) for personal computers. From operating systems it branched out into other software which has, along with the operating system, become something of an industry standard.
One company that appears to have a gap between its mission and its capabilities is Microsoft. The software giant has long had a problem with respect to innovation, and continues to rely on aging franchises for the bulk of its revenue. It was left out of the mobile operating systems boom and has failed to be a leader in either software or consumer electronics as a result (Clarke, 2010).
Microsoft's struggles might seem somewhat perplexing, given its stunning success with Windows and the fact that it seems to have pursued a 'related linked' diversification strategy of primarily concentrating on products 'linked' to technology. It has not acquired businesses that are fundamentally anathema to its core product. "Companies' implements related diversification strategies in order to achieve and
Microsoft, a company founded by Bill Gates has, in the last couple of years seen a number of changes in its mode of operation. Traditionally Microsoft has been in the business of producing computer-based products exclusively (Byrnes, 2010). In the light of changing technology, globalisation and changing consumer tastes and preferences change has become in the tech-giant company. In the fast-paced world of technology, consumers are actively switching to the new touchscreen laptops and tablets, which are the replacement to conventional computers. These contemporary computers require operating systems and software that are entirely different from what was in use formerly. As means of keeping up this trend, and in order to address these new
It is defined as all the forces or conditions that are available within an environment that affects an organization and business. It is also known as controllable factors because business can control them. The internal environment deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy. Internal environment also includes culture and other intangible aspects like teamwork, coordination, efficiency level of employees, employee’s salaries and monitoring costs. The strategy for competition should also be in sync with the internal resources especially the internal environment.
This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversify. Within this section the author plans to explore Microsoft’s related diversification approach, their corporate rationale, alongside why skill transferring is essential to them sustaining a competitive advantage and also how they achieved
Microsoft operates in many geographic locations around the world and are behind the world’s most popular desktop operating system in the world. Microsoft is primarily a software company but have flexed their arms into internet services and are behind certain products in consumer market which is directly against Google. Microsoft’s market includes end-customers, enterprises and institutions just like Google. Some of the key Microsoft products are Bing which is a search engine just like Google.com and Microsoft ad center which is a direct
It’s successful because of their workplace environment, empowerment of employee ideas, and their employee benefits. These elements are the result of the strategy that the Microsoft
It’s successful because of their workplace environment, empowerment of employee ideas, and their employee benefits. These elements are the result of the strategy that the Microsoft is
Microsoft's core competency is software development, which has led to the creation of massive sales of software applications. Microsoft has a competitive edge because of the control it exerts in the operating systems segment of the industry. When the company established the intent to make Windows, the standard operating system of the future, it sets its resources into motion. In a way, Microsoft forces other software manufacturers to use Windows as a platform for its software application. The result was major competitive advantage for Microsoft as other software manufacturers were preoccupied converting to Windows platform. Microsoft's dramatic growth and profitability has enabled to invest a large amount of cash flow into its core products as well as core competencies, which has led to economies of scale and scope. Microsoft has been able to develop core competencies resulting from collective learning in the organization, which can come from coordination of diverse production skills or the integration of multiple streams of technologies.
Microsoft became the global leader of software services and internet technologies for the computing industry in the early 90’s. It provides wide range of products & services and is involved in developing manufacturing, licensing and supporting software support. Microsoft’s software product includes operating system, business solution aps, computer and server applications as well as software development tools. Microsoft offers different range of services from its five