Strategic Dissection Paper on “Microsoft Corporation”

714 Words3 Pages
Abstract
This paper defines and exemplifies some of the strategies presented by David (2008) that are currently being used by the Microsoft organization. This work presents different levels of strategy (corporate and functional), some of integration and intensive strategies.
Levels of strategy
The corporate level of management consists of the chief executive officer (CEO), other senior executives, and corporate staff. The main role of corporate-level managers is to observe the development of strategies for the whole organization. This role includes defining the goals of the organization, determining what businesses it should be in, allocating resources among the different businesses, formulating and implementing strategies that span…show more content…
Not only that, engineers typically get paid more than businesspeople (Kirkpatrick, 2008).
In early 1994, Gates received e-mails from two young employees, Jay Allard and Steve Sinofsky, who argued that Microsoft’s current strategy was misguided and ignored the rapidly emerging Web. In companies with a more hierarchical culture, such action might have been ignored, but in Microsoft, which operates as a meritocracy in which good ideas trump hierarchical position, it produced a very different response. Gates convened a meeting of senior executives in April 1994 and then wrote a memo to senior executives arguing that the Internet represented a sea change in computing and that Microsoft had to respond.
Integration strategies
Microsoft is using a forward integration strategy, which usually involves gaining ownership or increased control over distributors or retailers. (David, 2010) Microsoft’s forward integration includes opening its own retail stores. Microsoft wants to learn firsthand about what consumers want and how they buy. Intensive Strategies
A market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. Market penetration includes increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts. (David, 2010)
Microsoft’s software products include operating systems,
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