Microsoft And Its Constituent Operating Units

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Using a broad variety of academic and industry sources, our team has conducted extensive background research on Microsoft and its constituent operating units. On the basis of our analysis of the challenges facing these units, jointly and severally, we are proposing Microsoft immediately initiate a comprehensive shift in the strategic direction of its Entertainment and Devices business unit. Microsoft’s inadequate response to the iPhone-era mobile revolution has seen it languish behind its main competitors in the consumer electronics space; in Q2 of 2014, the Windows Phone accounted for only 2.5% of the 301.3 million unit shipments worldwide (IDC, 2014). Likewise, while Q4 2014 Xbox console sales were up 14% over Q3, the competing Sony platform sold 70% more consoles during the same period (Harradence, 2014; Nelva, 2014). Microsoft’s devices have failed to command sufficient market attention to ensure the company’s status as a major player in consumer technologies. Growing market share in mobile and gaming has become a strategic imperative of the highest importance. We have identified three areas of pressing concern that simultaneously represent growth opportunities. First, Microsoft must rededicate itself to building first-party software that fosters creativity and improves the lives of users. This continues Microsoft’s tradition of creating dominant, functional platforms across a variety of hardware and contexts, as it did with Windows in the PC-era. Second, by

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