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Bussiness strategy formulation -Microsoft
- 1. B u si n e s s S t r a t e g y F o r m u l a t i o n Presented by : Sanjay Mishra M Siva Sagar M Bhaskar M Subhankar C
- 2. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft Corporation is an American multinational software corporation headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world’s largest software maker measured by revenues. It is also one of the world’s most valuable company. HOW IT ALL STARTED?????? Dream of having a PC on every desktop Bill Gates & Paul Allen. Intro Microsoft
- 3. B u si n e s s S t r a t e g y F o r m u l a t i o n Mission of Microsoft “Empower every person and Every organization on the planet to achieve more..” ”A computer on every desk, and in every home. Create experiences that combine the magic of software with the power of Internet services Across a world of devices.”
- 4. B u si n e s s S t r a t e g y F o r m u l a t i o n History of Microsoft Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PC computer language program to MITS Computer, Microsoft's first customer. Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system for its first personal computer. Paul Allen resigns as executive vice-president but remains on the board; Jon Shirley is made president of Microsoft (he later becomes CEO); Microsoft introduces the Microsoft Mouse and Word for MS-DOS 1.00. . Microsoft and IBM forge a joint development agreement. They launch Windows 1.0 ( first window based OS) and after that in 1986 Bill gates become youngest billionaire at the age of just 31. 1975 1981 1983 1985 1989
- 5. B u si n e s s S t r a t e g y F o r m u l a t i o n History of Microsoft Cont.. Jon Shirley retires as president and CEO; Michael R. Hallman is promoted in Shirley's place; the company becomes the first PC software firm to surpass $1 billion of sales in a single year. The company introduces Windows 3.1. Windows now has over 25 million licensed users. In this year Microsoft released Windows NT. In, 1995 Microsoft launch windows 95 and sell 1 million copies in 4 days. The Justice Department alleges that Microsoft violated a 1994 consent decree concerning licensing the Windows operating system to computer manufacturers The U.S. Department of Justice files two antitrust cases against Microsoft, alleging the company had violated the Sherman Act. 1990 1992 1994 1995 1997 1998
- 6. B u si n e s s S t r a t e g y F o r m u l a t i o n History of Microsoft Cont.. First beta of .NET framework released. Microsoft Windows XP is released internationally. In 2002, Great plain software is acquired by Microsoft. Microsoft launches Windows Server. Microsoft announces a five-country pilot program for Windows XP Starter Edition, a low-cost introduction to Windows XP designed for first-time desktop PC users in developing technology markets. MSN launches a new Search service, available in 25 markets and 10 languages. The new MSN Search service delivers results of greater relevance, instant answers to specific questions, and a collection of tools that give Internet users greater control in targeting and refining searches. Windows Vista was released to consumers along with a new version of its Office suite, called Microsoft Office 2007 2000 2001 2003 2004 2005 2007
- 7. B u si n e s s S t r a t e g y F o r m u l a t i o n History of Microsoft Cont.. Bill gates leaves Microsoft to pursue charity work. In this year Microsoft released windows 7. Beats all previous records of sales. For the first time, Apple comes close to Microsoft and becoming the most valuable technology company in America. Microsoft launch windows 8 ( for all people ), .NET framework 4.5, Internet Explorer 10 etc. Windows 8.1 was released to consumers along with Office 2013. Windows 10 was launched with a vision to have same OS across devices of every typw which are running on Windows. 2008 2009 2010 2012 2015 2013
- 8. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft Products
- 9. Key Strategical Decisionsof Microsoft in past: Linking with OEMs to charge for OS as per unit they sold instead of selling them the software once. This move enabled Microsoft to earn revenue from every unit sold with out any extra distribution or overhead costs. Changing the company’s Model from just “product based” to also “service based” by offering maintenance and constant upgradation services.
- 10. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft Store C o m p u t e r s Surface All-in-ones + desktops Laptops + Ultrabook's Accessories Tablets + convertibles PC games Windows 8 Windows 8 Pro Windows Phone Windows Phone for AT&T Windows Phone for Verizon Windows Phone for T-Mobile Office Office for Windows , Office for Mac & Office University All Office apps Additional software Visual Studio Visio Project & Mapping PC games X b o x Xbox One & Xbox 360 Xbox LIVE Accessories Computer accessories Xbox 360 accessories Windows Phone accessories PC gaming & Audio accessories
- 11. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft Competitors
- 12. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft SWOT Analysis Weaknesses Poor acquisitions and investments Dependence on hardware manufacturers Criticism over security flaws Mature PC markets Slow to innovate Opportunities Cloud based services Mobile advertising Mobile device industry Growth through acquisitions Threats Intense competition in software products Changing consumer needs and habits Open source projects Potential lawsuits Strengths Brand loyalty Brand reputation Easy to use software Strong distribution channels Robust financial performance Acquisition of Skype
- 13. Porter’s Five ForceAnalysis for Microsoft • Competitive rivalry or competition (strong force) • Bargaining power of buyers or customers (moderate force) • Bargaining power of suppliers (moderate force) • Threat of substitutes or substitution (weak force) • Threat of new entrants or new entry (moderate force)
- 14. I need previousside in this format
- 15. Competitive rivalry orcompetition (strong force) For Microsoft, the following external factors and their intensities exert the strong force of competition against the company: • Moderate switching costs (moderate force) • High aggressiveness of firms (strong force) • High diversity of firms (strong force)
- 16. Bargaining power ofbuyers or customers (moderate force) Microsoft must respond to the moderate force of the bargaining power of customers, based on the following external factors and their intensities: • Low substitute availability (weak force) • Moderate switching costs (moderate force) • High quality of information (strong force)
- 17. Bargaining power ofsuppliers (moderate force) The following external factors and their intensities maintain the weak force of the bargaining power of suppliers on Microsoft Corporation: • Moderate size of suppliers (moderate force) • Moderate population of suppliers (moderate force) • Moderate overall supply (moderate force)
- 18. Threat of substitutesor substitution (weak force) In Microsoft’s case, the following external factors and their intensities impose the weak force of substitution on the business: • Low performance of substitutes (weak force) • Low availability of substitutes (weak force) • Moderate switching costs (moderate force)
- 19. Threat of newentrants or new entry (moderate force) The intensities of external factors that lead to the moderate force of the threat of new entry against Microsoft are as follows: • High cost of brand development (weak force) • Moderate cost of doing business (moderate force) • Moderate switching costs (moderate force)
- 20. B u si n e s s S t r a t e g y F o r m u l a t i o n Microsoft