MS Case Analysis Pagsinuhin PDF

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Case Study Analysis MICROSOFT DIVERSIFICATION STRATEGY Submitted by: Marjorie Pagsinuhin

3. Socio-Cultural Factors – Knowing what their target customers’ desires and needs should also be the priority of Microsoft if they want their company to be gain more loyal customers. Studying the trends and marketing their products based on a more specific approach would be a big help to become the leader in the industry.

Submitted to: Mrs. Aleli C. Dugan, CPA, Ph. D

Introduction

EXTERNAL ANALYSIS PESTEL Analysis

1. Political Factors – Microsoft had to spend millions of dollars to build a favorable image of the company among the government circles of different countries. MS grabbed the attention of government due to the anti-trust related issues. The government also put the blame on MS for creating monopoly among PC operating systems and basic office software. 2. Economic Factors – Like any other businesses, economic stability is a huge factor that impacts Microsoft. The GDP of the country, inflation, and its people’s disposable income plays an important role to the success of their products and services. The increasing income of workers in developing countries provides a great business opportunity for MS as more people can afford to buy laptops, computers, mobile phones, and gaming products.

4. Technological Factors – Since Microsoft products come from technology, developing a more advanced and efficient technology earlier than their competitors will make them unbeatable. It would also help in manufacturing production and day-to-day processes that results to less errors. Their OS should be faster and time saving than those of Linux and Google. 5. Ecological Factors – These pertains to how ecologically friendly and sustainable Microsoft’s operations and product units are to minimize the environmental impact and carbon footprint. The firm has to improve their policies and be conscious regarding this since environmental groups demand more accountability from big companies.

6. Legal Factors – Gender discrimination in the workplace was a major issue faced by Microsoft. The company was entangled in a huge lawsuit when its 8600 former and current employees filed complaints against gender discrimination. Lawsuit said that Microsoft systematically discriminates female engineers and employees.

Porter’s Model (5 Forces Analysis) 1. Low-Moderate Threat of new entrants – Computer programming is a difficult skill to learn but anyone with time to spend and adequate resources can learn this. If you are able to develop a new, more efficient and useful program than what the big firms in the software industry are offering, market entry is not as difficult as you think. Although this happens on some instance, people who were capable of developing these would rather sell the patent of their codes or products, but if they are thinking about long-term results, they can find investors and launch it. 2. Moderate Bargaining power of suppliers – The moderate size and population of suppliers give them a low but significant influence on Microsoft’s operations. But it will also depend on the uniqueness and availability of the product and materials. If the current supplier decided to raise the prices of their computer hardware components, then Microsoft would have to likely adjust their output prices, whether they opt the current supplier or switch to a new one.

software companies led Microsoft to reorganize their strategy disarray. Early product introduction than their competitors is considered as an advantage, especially when comparing the unit sales for every product that they launch.

5. Low-Moderate Threat from substitutes – Since people are dependent on fast computer solutions, there are only few substitute retailers that offer services with the usefulness and efficiency of Microsoft products. Their low performance weakens the threat of substitute in the software industry. INTERNAL ANALYSIS VRIO Analysis Are the resources and capabilities of Micrisoft: VALUABLE? . RARE? IMITABLE? ORGANIZED?

Diversification Strategy: Effective or Not 3. Low bargaining power of customers – Customers especially office and business enterprises would face difficulties in finding non-computer network solutions that are as effective as what software companies are offering now. 4. High/Strong competitive rivalry – The intense rivalry among the existing...