Microsoft assignment written by dichvuthuctap

Written by dichvuthuctap.com 1
MICROSOFT ASSIGNMENT
WRITTEN BY DICHVUTHUCTAP.COM
Throughout this course, you have learned about the elements of a marketing plan. This
assignment will provide you with the opportunity to research the marketing
methodology of an existing publicly traded company; using a publicly traded company
will provide you with access to a greater amount of information to complete this
assignment. As you research this company, apply the theoretical learning from this
course.
Include the sections below in your marketing plan.
• Introduction: Include a brief introduction of the company.
• Competitive Analysis: Who are your company’s competitors, and how is each
differentiated? Identify two or three strengths and two or three weaknesses of
your company compared to a minimum of two of your company’s competitors.
• Marketing Strategies: What are the marketing strategies used by your company
in the management of the globalcustomer brand? Use the four Ps in your
analysis, which are listed below.
Product: Begin with a theoretical definition of a product. What is the
product/service offering by yourcompany? How did the development of these
new products affect your company’s marketing strategy?
Place: Begin with a theoretical definition of place. What are the distribution
channels used by your company?
Price: Begin with a theoretical definition of price. What is the pricing strategy
used by your company?
Promotion: Begin with a theoretical definition of promotion. What are the
traditional and digital methods of marketing promotion used by your
company? Explain a minimum of three traditional and three digital methods.
• Competitive Advantage: Identify whether your company has a competitive
advantage in each of the areas of the four Ps. Remember that your company could
have a competitive advantage in one area and not in another.
• Include supporting rationale.

The submission must be in essay format and use subheadings. You need to include a
minimum of five scholarly sources (no blogs, no Wikipedia), and three must be peer-
reviewed sources. The submission must be a minimum of six pages in length, not
counting the title page and references page. APA format is required.

I/ Introduction
Microsoft Corporation is an American multinational company with a leading position
in the world, its headquarters is located in Redmond, Washington. The Corporation was
founded by Bill Gates and Paul Allen in Albuquerque, New Mexico in 1975, with its
first product to market, the Altair BASIC, a programming language for the Altair 8800
computer. It was Paul Allen who came up with the name “Microsoft Ware” a
combination of computer and software.
In 1979, the company moved to Bellvue, Washington. In 1980, Microsoft began making
an operating system for IBM's personal computer. The company purchased the
exclusive rights to sell the QDOS operating system from Seattle Computer Products,
which they later modified and renamed MS-DOS(Microsoft Disk Operating System)
and launched in 1981. Ms-dos became a popular operating system in the 1980s, and
most computer manufacturers loved it. As a result, Microsoft has become the most
profitable and fastest-growing software company in the world (Carlos Perez, 2013)
Microsoft Windows debuted in 1985 as a graphical interface for the MS-DOS operating
system. Microsoft was selling over a million copies of various versions of Windows
each month by the early 1990s. Microsoft became one of the most valuable and
profitable companies globally thanks to the Windows operating system. Current CEO,
Steve Ballmer, joined Microsoft in 1980 and took over as CEO of Bill Gates in 2000.
With the release of the Xbox in 2001, Microsoft entered the gaming machine market.
In the 2000s, Windows remained the most popular operating system, even though most
tech enthusiasts regarded Windows Vista, which was released in 2007, as a failure.
Apple, Microsoft's main competitor, had taken the lead in the smartphone and tablet
market by the late 2000s, with a large share of the iPhone and iPad.icrosoft's delay in
entering this market would cost them market share in the years to come. When Windows
Phone first came out in 2010, it couldn't compete with Apple, Google, or Android.
In September 2013, Microsoft announced the acquisition of Nokia's devices division.
Microsoft has taken risky but necessary steps in its pursuit of smartphone and tablet
success. Android and iOS devices continue to dominate the competitive market, and
Microsoft has a long way to go to catch up.

Part 1
I/ Microsoft’s Evolution
The process of formation and development of Microsoft has undergone extremely
important development timeline. Here are Microsoft Corporation's growth timeline
since entering the industry:
Table 1 Microsoft's Development Timeline

(Source: Cusumano, 2017)
II/ Analysis of Microsoft's Marketing mix strategy
2.1 Product strategy
It's not just a simple set of tangible features, as Ivy (2008) points out; it's a complex
package of benefits aimed at meeting customers' needs. According to Suherly, Affif,
Arief, and Guterres (2016), products are manufactured goods sold to end-users.
Tangible and intangible products are the two types of products that can be classified
(services).
Microsoft began as a software developer. Below is a list of products that Microsoft
Corporation has launched to the market during its formation and development:
1) Equipment
2) Software
3) Application
4) Games
5) Entertainment
Microsoft's two main product categories are hardware devices, which includes a
portfolio of hardware products such as computers, tablets, phones, or Xbox. In addition,
Microsoft's strength lies in software system products such as Window Ó and Microsoft
office. Microsoft's products have brought significant improvements. Every time
Microsoft launches a new product, it tries to give customers the best experience
possible, while also putting pressure on competitors. Over time, Microsoft improved its
Windows software.
In the application product line, there are both proprietary products of the company and
third-party free software. Examples are Microsoft Remote Desktop(from Microsoft
Corporation) and proprietary PDF Drawboard (from third parties, Drawboard). The

company retains a portion of all revenue generated from selling third-party applications
in Microsoft's online store.
The gaming product portfolio that Microsoft offers includes game software and Xbox.
For entertainment, Microsoft currently associates with 3rd parties and keeps a certain
percentage of the music and movie products sold on the company's platform.
Microsoft's product strategy reflects the company's growing diversification.
2.2 Price strategy
Suherly, Affif, Arief, and Guterres(2016) define price as the intermediary that
customers use to pay for the company's products or services. In general, service prices
include considerations related to fixed costs (management fees) and variable costs
(labor and material costs), such as price discounts, determination of channel common-
channel commissions, and credit considerations (terms of sale of products and services).
According to the Chartered Int titute of Marketing, a product is only worth what a
customer is willing to pay for it. Pricing has to be competitive, but that doesn't always
mean the cheapest small business can compete with larger competitors by offering extra
services or details to give customers value for money.
Microsoft's marketing strategy has to do with the cost of the software it develops. In a
technology market awash with software, Microsoft's Windows has consistently topped
the list. This can be explained by the company's pricing strategy, which includes:
(1) Current pricing strategy
(2) Freemium Pricing Strategy
(3) The "buy what you use" pricing strategy
At Microsoft Corporation, there are currently 3 strategies used by businesses. The first
is a pricing strategy built on the direction of the market. Or simply understand,
Microsoft prices its products based on factors related to the market of that product, those
factors can be consumer demand for that product or the price of the product. similar
products of competitors in the market.
The second pricing strategy adopted by Microsoft is the freemium pricing strategy. In
simple terms, for this strategy Microsoft will provide customers with some products for
free, but instead consumers will have to pay for additional features. A good example of
this pricing strategy is that Microsoft is free to use Office 365 applications on devices

with screen sizes under 10 inches and when customers have a need to use Office 365
on devices with larger screens, they will have to pay a fee to Microsoft.
The third pricing strategy used at Microsoft is the buy-what-you-use pricing strategy,
and this pricing strategy is applicable to cloud services. This strategy shows its
advantage in attracting customers who use multiple computing devices because this
strategy only charges for the number of customers used instead of applying a fee for
each device using the service.
With a flexible pricing strategy for each product line, it has brought a great competitive
advantage to Microsoft against other technology competitors in the market.
2.3 Distribution strategy (Place)
According to Iorait (2016), distribution is the factor that enables customers and users to
locate and purchase products from manufacturers/suppliers when they are needed. As a
result, distribution can become a complex operating system in which independent
producers, brokers and traders, and consumer interests are all fully interoperable in a
specific environment and at a particular time. Goods manufactured for sale to customers
must be made available to the customer conveniently so that transactions can be
completed quickly. As a result, the product must be available at the city's markets.
According to Thabit & Raewf (2018), this includes several individuals and
organizations, such as distributors, wholesalers, and retailers, who shape the company's
distribution network (distribution channel). The company must decide whether to sell it
directly to individuals or through distributors, possibly selling it directly to customers..
Microsoft's sales strategy is to maximize its influence in the computer hardware and
software markets. Currently, Microsoft's distribution channel system includes 03 main
distribution channels as follows:
(1) Microsoft official website
(2) Authorized Sellers
(3) Microsoft Stores
The company's software products are distributed directly on platforms such as the
company's official website or online store. Customers can easily buy products at these
distribution channels. At present, the online store is Microsoft's main revenue
distribution channel. In addition, the Company's authorized distribution channels are

direct sales and marketing channel vendors to provide consumers. Microsoft's
distribution channels are often located in strategic business areas around the world; This
distribution channel makes it easier for a company to reach its target market.
On the other hand, Microsoft retail store is an entity, customers can visit the company's
various products directly. So far, the number of Microsoft stores has remained small
due to product characteristics. However, such distribution channels can help companies
enhance their brand image and improve customer experience. Microsoft's distribution
strategy demonstrates the potential for increasing access to Microsoft's global computer
hardware and software markets.
2.4 Trade Promotion Strategy (Promotion)
According to Gituma(2017), promotion includes all activities aimed at disseminating
and promoting a product or service to the target market. According to the Chartered
Institute of Marketing (2009), promotion is when a company tells its customers what it
does and what it has to offer. Branding, advertising, public relations, corporate image,
sales management, special offers and exhibitions are all part of it.
Microsoft's trade promotion strategy focuses on researching and implementing effective
communication strategies to attract target customers. Therefore, in combination with
the situation of computer hardware and software market, the priority of Microsoft's
brand promotion strategy is as follows:
(1) Advertisement
(2) Sales promotions
(3) Direct Marketing
(4) Personal sales
(5) Public Relations
Advertisement is the category that accounts for the most significant proportion of
Microsoft's trade promotion budget. The following are some typical Microsoft trade
promotion programs that are highly effective. Windows XP operating system was first
introduced by Microsoft on November 25, 2011. And to promote the product, a global
media campaign was carried out and this media campaign helped Microsoft establish
That record is through the use of Windows Movie Maker software on the Windows Xp
operating system platform to "make the fastest music video clips from movies". This

clip is 3 hours 46 minutes 19 seconds long and so far no technology company in the
market has surpassed this record. In the UK alone, this media event has attracted 143
million people through more than 150 media. In addition, this video also achieved a
record of 20,000 viewers in the first week of its appearance on MSN. Microsoft's 2nd
prominent media event is the media campaign to promote the Xbox 360 product in May
2006. To carry out a media campaign to attract millions of people to watch the product
launch, Microsoft has partnered with MTV Europe with a host of high-impact
influencers.
The audience witnessed demonstrations of Xbox 360 products before, during and after
the ceremony, which brought the company closer to its customers.
During promotions, companies use discounts and other incentives to attract customers
on special occasions throughout the year. On the other hand, companies use direct
marketing to customers who are organizations, such as information technology training
institutions and businesses.
In terms of personal sales, sales staff in the Microsoft Store directly introduce products
and features to potential customers. In addition, Microsoft has paid special attention to
public relations strategies to make the company's image closer to consumers.
Microsoft's main activities are carried out through Microsoft Charities. Some of
Microsoft's typical PR activities include donating computer software and hardware
products to nonprofit organizations and donating money to youth training programs.
What has the company done well and where did it falter?
Well done Falter
With the release of the DOS operating
system for computers, IBM helped
Microsoft quickly become a giant in the
technology industry. Its early
promotional efforts informed the
company's merchandise, from DOS to
Exceeding Expectations and Windows,
and tied them together under the
Microsoft brand. In addition, factors such
Microsoft's battle to be a browser pioneer
was not without discussion; A few realize
that the company has a monopoly in the
industry. This led to the fact that in 1999,
Microsoft had to receive accusations
related to anti-reading and a number of
other charges related to their
communication and advertising
campaigns. On the other hand, the

as: diversity of products and services,
international operations, becoming a
popular browser with Internet Explorer,
the 5th most valuable brand in the world,
etc. are also its advantages.
monitor market also witnessed a decline
in Netscape's market share to 4%.
Excluding expenses, the company's stock
also grew, soaring to $60 a share in 1999.
Microsoft continued to sell unused
merchandise, including Windows 2000
and Windows XP from 2000 and 2001. In
addition, they promoted the Xbox in 2001
to test their ability to break into the multi-
billion dollar gaming industry.
Microsoft's stock fell more than $40 a
share as consumers awaited the next
operating system release. There were also
problems with the Vista operating
system, and the company faced antitrust
charges in 1988.
Microsoft can develop significantly about search engine because the Search Engines
industry is in the growth stage of its economic life cycle; this stage is characterized by
a rapidly changing technological landscape and growing product acceptance from
downstream markets. By 2025, the industry's added value is expected to reach a growth
milestone of 9.0%, which reflects the industry's contribution to the overall economy. In
contrast, US GDP is projected to grow at an annualized rate of 1.9% during the same
period. Typically, an industry is considered to be in the growth phase of its life cycle
when industry development exceeds that of the overall economy during the 10 years.
(IBISWorld, 2021). The Search Engine Industry is highly profitable (24.4% - compared
to the average return of all industries in the industry: 16.8% in 2019). Meanwhile, Bing
has struggled to make a profit since 2015. Bing takes the 2nd place in the Search market
with 4.5% market share (Google dominates), strong brand, stable market share in the
search market. more than 5 years. In 2009, it partnered with Yahoo, Microsoft will
provide the algorithmic and paid search platform for Yahoo's website worldwide. Since

2013, Bing has integrated Facebook into search results, it is now heavily integrated with
Microsoft platforms, Internet Explorer, Windows Phone, Amazon Echo and Xbox.
Bing's ethos is to dominate voice search.
On contrary, It is very difficult for Microsoft to develop in the smartphone industry:
The smartphone market is more saturated, revenue growth is likely to slow down. While
it has a highly competitive landscape, the number of Windows smartphone users in the
United States decreased between 2010 and 2021. Windows smartphone market share
continued to slide, while the share of mobile operating systems Mobile and tablet
computers are both small and reduced, and there is a lack of mobile apps for Windows
phones.
According to Dave Jaworsk, (2018) Microsoft's arrogance, of course, helped fuel a fire
in the Justice Department. And the continued arrogance of corporations through the
process of antitrust litigation did not help either. The Department of Justice's
investigation, which began on April 21, 1993, continued through May 2011 through the
Antitrust Action Decision Appeal Settlement and Extension. This was further escalated
by the European Union following antitrust lawsuits in the United States. The U.S.
federal government has ordered Microsoft to split an important lawsuit first into two
companies, one for operating systems and one for applications. In the opposition and
agreement procedure, this issue was eventually removed from the table. Microsoft has
published APIs and protocols, including APIs for internal use that were previously
unavailable to another company. Microsoft also needed the panel to allow full access to
the system, records, and source code for five years.
The consumers most affected by government action were Microsoft shareholders. More
than half of Microsoft's stock price has disappeared. The Legal Department dominated
the decision to categorize Microsoft's business practices exclusively. As a result,
Microsoft had to make some decisions during the operating system installation process,
including requiring the browser to unbundle Internet Explorer. The fight against the
government has so far lost more than half of Microsoft's life to the mind and energy on
the Redmond campus. Bill Gates retired as CEO in January 2000, and Steve Ballmer
took over as CEO. Microsoft Corporation stumbled under Steve Ballmer. Due to its
mess, Microsoft stock options were essentially worthless to a generation of employees.

During this period, the "golden handcuffs" were full and lost considerable talent.
According to Ballmer's credit, he prevented the company from splitting in two when the
DOJ seemed to devote itself to achieving these results.
Over the next few years, Apple has captured the hearts of consumers. Microsoft is no
longer considered by visionary companies as it used to be. In technical influence
conversations, Apple, Google, Amazon, and other names are mentioned before the
name Microsoft is mentioned. The company has begun to regain its reputation as an
innovation for consumers by 2014 when Satya Nadella was appointed CEO of
Microsoft.
Part 2
I/ PEST analysis
1.1 Political and legal factor
According to Ahsan Ali Shaw, (2020) companies such as Microsoft have some
production and manufacturing facilities in China. In recent years, the conflict between
the Trump administration and China and the conflict between the European Union and
Microsoft has caused great damage to Microsoft. How the EU introduces new trust and
personal information protection laws, big companies like Microsoft are getting harder
and harder to run their businesses globally. Sometimes these laws benefit brands such
as Microsoft, based on company policy.
Microsoft has realized the power of political influence for large corporations Hiring
lobbyists to provide a better image for government companies. It is estimated that
Microsoft spends tens of millions of dollars on lobbyists each year to build and maintain
a better image for the company in various politics. Microsoft has hired lobbyists to
attract the attention of the EU and other governments. Critics and some government
officials said the brand is creating its own environment by hiring lobbyists to create a
favorable environment for the company.
1.2 Economic factor
Ahsan Ali Shaw (2020) Labor law says that economic problems such as trade tariffs,
taxes, import restrictions, poor relationships with civil servants and other companies
and other issues can adversely affect the growth and profits of global companies like
Microsoft. When the dollar is lower than the foreign currency, the company`s expenses

increase and its profits decrease. The Trump administration recently announced that it
is overhauling the H1B visa program, which is the US employers` mainstay, forcing
skilled foreign workers to pay high wages. Under the new law, foreign employees will
have a shorter visa period than before.
There has been some criticism that the new rule has made it difficult for foreign
employees working in the US to get visas. However, this is beneficial in terms of profit
growth for companies like Microsoft. However, global companies like Microsoft
operate business empires around the world.
The outlook for the United States, the world's largest economy, is still dominated by
domestic factors. Private consumption accounts for the majority of GDP, about two-
thirds of total national spending. Compared to other developed countries, the United
States has a relatively small public sector, with both government consumption and
investment accounting for about 17% of total GDP. The United States is one of the best
countries in the world in technology and value-added manufacturing, and innovation is
still an important mate for growth. US Country Risk Report (2021).
(Source: US Country Risk Report, 2021)
1.3 Social factor
According to Ahsan Ali Shaw (2020), customer tastes and consumption trends of
customers are one of the important factors affecting business activities of enterprises.
As a multinational technology company, Microsoft Corporation needs to pay special
attention to researching, analyzing trends and tracking changes in consumer behavior.
IKEA is one of the typical businesses in doing well in changing products to keep up

with trends and tastes of customers. Up to the present time, Microsoft has not been
appreciated in this field to catch up with market trends and customer tastes.
This means the company is losing a large market share in the smartphone industry.
According to a study conducted by Emerson in 2018, STEM (Science, Technology,
Engineering, and Mathematics) American experts.
1.4 Technological factor
Ahsan Ali Shaw, (2020) The technology market and software development are very
competitive. There are as many competitors as there are many tech experts and software
developers. What you need is a new big idea that no one has ever thought of. When it
hits the market, everyone quickly forgets the superiority of previous software.
Google and Apple are Microsoft's main competitors. It is a form of loss of market share
and revenue when a brand does not keep up with the pace of its competitors. Microsoft
also acquired Nokia, but it did not deliver the expected results.
In 2019, Microsoft became an American multinational showing third signs. The
company's net income for 2020 is $44.3 billion. This means that the company has an
abundance of freely available resources. Now brands have to invest in research and
development to figure out something of their own.
Artificial intelligence (AI) is one of the areas where top competitors such as Google
and Amazon are investing their resources. There is also an opportunity for Microsoft to
introduce something new in the field of AI and gain market share.
II/ Competitive Analysis
2.1 Industry competitors
For Microsoft, although there are few competitors in the software market and
Microsoft's business is growing, the competition among existing competitors in the
industry is still quite fierce. As we all know, the operating system, software and cloud
computing industry is a competitive market. The ultimate goal of Microsoft, Google
and Apple is to outdo each other and increase market share. Moreover, they will
compete for the same resources and the same buyers. They all follow each company's
business strategy to achieve business goals. Thus improving the level of competition in
the industry. To gain a competitive edge, Microsoft decided to adopt a business strategy
that combined a low-cost strategy with offering the most affordable platform, and

changed the entire market with the introduction of the Xbox 360 game console, a high-
quality, lower-priced product. The target audience is mainly players with average
income. However, there are several other players in the market, such as SONY and
Nintendo, that offer similar platforms and target the same audience. Nintendo and
SONY, however, charge more for their platforms, giving Microsoft a competitive
advantage.
Google Android
Android is a Google-developed open-source operating system based on the Linux
platform. Developers and programmers can freely adapt and distribute Android thanks
to its open-source code and Google's license without too many constraints. Both
smartphone manufacturers and users have found this to be very appealing. Android is
currently the most popular smartphone operating system; it has been in the first place
since Q4 2010, and it is also the operating system with the most significant growth in
Q2 2011. Compared to the previous year, the number of Android smartphones sold
increased by more than 379% (51.9 million units). The best-selling Android products
are from various manufacturers: Samsung, HTC, LG, Motorola, Sony Ericsson, ZTE,
and Huawei. According to a Canalys report, Android devices are prevalent in Asia-
Pacific countries, especially Korea and Taiwan, where Android devices in these two
countries account for 85% and 71% of the smartphone market share.
Apple IOS
Apple iOS is the second most popular operating system for smartphones. In Europe,
Apple currently has a 17.9% market share, while it is 43.4% in the US. iOS is a closed
and exclusive operating system for Apple products. That allows Apple to maintain a
high degree of control over the iPhone user experience. The lack of customization might
cause some tech-savvy customers to ignore Apple products. Although considered a
high-priced product segment, Apple has so far achieved excellent customer loyalty.
2.2 Bargaining power of buyers
Given the relatively low availability of alternatives to Microsoft products, this suggests
that customers will struggle to find effective alternatives to Microsoft products. So the
pressure from Microsoft's bargaining power is modest. However, due to the modest
switching costs, customers can easily compare Microsoft's hardware and software

products with those of competitors in the current context. Therefore, Microsoft needs
to pay special attention to the moderate bargaining power of customers. In addition,
advanced operating systems offered by different vendors can be open source, such as
Linux or Mac OS, and competition with Microsoft is fierce, increasing the bargaining
power of buyers. So to maintain this competitive edge, Microsoft released Windows
Server and Windows Azure. In doing so, Microsoft limited the threat of buyer
bargaining power and continued to dominate the software market. With this business
strategy, Microsoft products today can be considered an important factor in controlling
buyers' bargaining power to a certain extent. As a result of these implementations,
Microsoft was declared the second most valuable brand in the world, valued at $326
billion and ranked third in the world. This is enough to prove that Compared with other
industries, Microsoft has high bargaining power in the software market, and maintains
fierce competition.
2.3 Bargaining power of suppliers
Suppliers have relatively low bargaining power over Microsoft; It is well known that
many vendors or companies have a competitive advantage in providing their customers
with operating systems and cutting-edge technology products. However, buyers can
bargain, they may demand high quality products or services, which makes it impossible
for suppliers to bargain with buyers, because suppliers are afraid that when prices rise,
customers will switch to other industries because of low switching costs.
2.4 Threat of substitute products
For companies like Microsoft, the emergence of open source software is an even bigger
threat. Windows Linux is now open source software that can replace the Windows
operating system; As a result, other companies in the industry began to embrace
Windows Linux and install it into their systems. However, this is a warning shot for
Microsoft, which realizes it's time to change the game and move the market to cloud
applications. In order to stay close to its customers, Microsoft decided to introduce the
Microsoft Azure platform to offer some services to customers at a lower price. Today,
200 million people use Microsoft Azure, but there is no alternative product or service.
Allowing Microsoft to reconquer the software market and stay ahead of its competitors.
So the threat of substitutes is modest; The main reason is that alternative products will

reduce Microsoft's market share, which Microsoft will not allow to happen.
Competitors, however, will never be able to store what Microsoft can offer. Therefore,
according to the analysis, the threat of service substitution is a relatively low issue for
Microsoft.
2.5 Threat of potential competitors
New entrants pose less of a threat because of Microsoft's dominance in operating
systems, cloud computing and software performance. To compete by offering such
software products and operating systems, companies that want to enter the industry must
invest in mass technology and branding. The Windows 10 operating system and
Microsoft's Office suite, for example, account for nearly 95% of the software market, a
valuable factor for Microsoft because there is no rival to compete with.
III/ Microsoft SWOT Analysis
3.1Strengths
Up to the present time, Microsoft is still the brand holding the number-one position
globally in the software technology market, especially in cloud computing technology
with typical products such as Azure, Office 365 commercial, Dynamic 365. Cloud
computing technology brought Microsoft more than 23.2 billion USD in revenue in
2018
As of 2020, Microsoft is the second largest technology company in the world after
Apple with a market capitalization of up to 1.61 trillion USD.
One of Microsoft's other strengths is its high market coverage. Specifically, by the end
of 2020, Microsoft was present in more than 190 countries and territories around the
world.
Revenue and profit are constantly growing despite the complicated developments of the
Covid-19 epidemic worldwide. In a recent report from Microsoft Corporation,
Microsoft had a record profit in the third quarter of 2021. Specifically, total revenue in
the fourth quarter of fiscal year 2021 increased 21% to $46.2 billion, 2 billion higher
than USD compared to the set plan. Thus, total revenue for the fiscal year 2021 ending
at the end of June 2021 of Microsoft has increased by 18% compared to the same period
last year, reaching $168.1 billion. Profit also increased 38% year-on-year in fiscal 2020,
reaching $61.3 billion.

Microsoft owns a loyal customer base with big brands. Specifically, up to now, globally,
there are 1.2 billion people using Office software and the number of customers using
Office 365 is more than 60 million customers.
Microsoft invests heavily in advertising and communication campaigns to promote the
brand image. This has helped improve Microsoft's brand recognition among customers
According to the assessment of Brand Finance - the world's leading brand valuation
company in 2021, Microsoft is the world's 4th most valuable brand.
Microsoft owns products that are easy to use and have high quality standards that are
appreciated by users.
3.2Weaknesses
The computer market is affected by fluctuations in the exchange rates of vendors. This
leaves Microsoft's business vulnerable to a negative impact
Cybersecurity issues – in the context of the 4th industrial revolution taking place
strongly in all fields, especially technology. Along with the benefits it brings, there are
also challenges that come from the increase in the number of cybercriminals. This has
caused Microsoft to be repeatedly subjected to hacker attacks.
One of Microsoft's biggest weaknesses is its lack of innovation. Specifically, for nearly
a decade, Microsoft almost did not launch a new advanced technology product. This
caused Microsoft to face difficulties in increasing sales of hardware devices.
Another weakness of Microsoft is the lack of competition in the market for Internet
browsers. Specifically, up to the present time, Microsoft's browser market has not
reached the top of the most popular browsers in the world.
3.3Opportunities
Cloud computing technology is developing day by day. Therefore, creating
opportunities for Microsoft to expand the market with its strong products.
Innovative technology and artificial intelligence have many breakthroughs. This creates
effective investment opportunities, bringing great income for Microsoft.
Taking advantage of opportunities through the process of cooperation and acquisition
will help Microshop to expand the market and increase the company's market share
globally.

In recent years, the smartphone and tablet market has grown strongly, creating
conditions for Microsoft to increase profits and expand the market with this business
area.
3.4Threats
Currently, according to statistics, Microsoft is facing the challenge of gender imbalance
in its workforce. This, causing Microsoft to face criticism related to the company's
human resource policy. Thereby indirectly affecting the brand image of the company.
Another big challenge for Microsoft is not only having to compete fiercely for market
leadership with big tech companies like Apple or Google, but also have to compete with
other competitors to keep market share.
Market trends and consumer tastes are increasingly changing, so in the future Microsoft
needs to pay special attention to market research and analysis of consumer habits.
The current trend of using open source code has created a big challenge for Microsoft.
Currently, the increasing prevalence of piracy has created a pressure on Microsoft's
secure network.
Part 3
1. Organizational problem of Microsoft
As discussed above, one of Microsoft's biggest weaknesses is the lack of technological
innovation. The proof is that in the past decade, Microsoft has hardly launched a new
product, which is mostly known through mergers or acquisitions. This has caused
Microsoft to reduce competition in the field of advanced technology to direct
competitors such as Apple, Google…
2. Proposed solution
2.1 For Product
Windows is still Microsoft's development center
Windows has been a trademark of Microsoft for a long time, so focusing on developing
newer versions of Windows is essential. Despite the decline in PC sales, Windows
remains the company's financial platform. Currently, there are many lines of Windows-
based computers such as Dell, HP, ... that users prefer.
Developing Financial and statistical applications on Microsoft Office

Currently, many financial and statistical applications taught at universities are only
available on Microsoft Office, but the iOS operating system has not yet been updated.
This is an advantage that Microsoft should take advantage of to target students who
need to use laptops very often. A great phone with outstanding features is still a good
way to attract customers with the Windows Phone platform. However, it is not difficult
to see that Microsoft is currently only successful with low-end products. Typically, the
"super cheap product" Lumia 520, this is still the most attractive Windows Phone
smartphone model. Therefore, Microsoft should focus on developing unique features
for Lumia.
Developing Windows Phone app store
Poor app store and not up-to-date trend is the reason why many customers prefer to use
Android-based phones.
Research - product development
Microsoft needs to always research and grasp carefully the needs and behaviors of target
customers to know what they need and want to quickly launch new products that not
only meet the right needs but also must constantly create curiosity as well as stimulate
desires that have not yet appeared. In addition, product research and development also
includes research to improve and improve the quality of existing products. However,
according to recent reports, users reflect that the new update of Windows 10- Windows
10 Creators Update reduces gaming performance. Microsoft says it has confirmed some
issues that cause an unusual drop in FPS when playing games on the Windows 10
Creators Update. It is also a warning sign that Microsoft's R&D work needs to be
focused and perfected further to launch a perfect product that satisfies the maximum
needs of users.
2.2 For Pricing
Pricing is one of the most important steps in a business strategy. The success of the
business depends on the company's pricing strategy. The price should always be
favorable to the consumer to increase sales volume. Microsoft may adopt a skimming
pricing strategy that can be used when a product has just hit the market and it is sold at
a relatively high cost because of its unique features, consumer benefits, or new product

design. However, the price declines as the product's life cycle ends and the product is
offered at a competitive price.
2.3 For Place
For inefficient distribution channels, Microsoft needs to re-select distributors to have a
better strategic partner and share difficulties on the basis of mutual benefits. Only
potential distributors should be selected and set specific standards, and increase the
number of hardware devices sold by increasing discounts and discounts with
distributors.
2.4 For Promotion
Microsoft needs to focus on aggressive advertising using various channels like TV,
print, online ads, billboards, etc. Microsoft's advertising needs to focus on how it
differentiates itself from its competitors in the market. Ads should be simple and
connected to people's hearts. Ads should provide accurate information and be free of
irrelevant information. These ads should appear during any product launch and should
run for a very long time. Promotions need to be developed in order to expand the market
and better reach the target customers.
3. For Research and develop new products
The reason the author chooses this solution is because Microsoft's biggest problem right
now is reducing its competitiveness in advanced technology products compared to its
competitors, leading to a decrease in revenue.
To realize this solution Microsoft can do it by internationalizing R&D activities:
Conducting R&D activities in developing countries will have many economic and
creative advantages such as: taking advantage of resources. scientific and technical
manpower with low salary, low cost of facilities and materials and to expand the
industrial base. This is also the advantage of industrialized developing countries
compared to other countries in the world, especially India and China. The operation of
China's R&D agencies is only one-tenth that of the US. The salary of R&D staff in
China is quite high compared to the domestic salary, but it is only 1/4 or 1/5 of the
salary of R&D staff in other developed countries of Europe or North America. For India,
it has the advantage of cheap but well-trained labor. There are more than 250,000 Indian
engineers working in R&D, an engineer can get a salary of only $5,000/year, and the

top engineer team leader averages $30,000/year. Microsoft should also look for new
technological competitiveness to better adapt to the market and lower R&D costs
Improve the working environment: innovative ideas, differentiating products are
strongly impacted of the working environment. A comfortable, dynamic working
environment, clear and effective communication channels will suggest more ideas for
product design and development as well as giving the right directions for important
decisions.
References
Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2015). Marketing mix and brand
sales in global markets: Examining the contingent role of country-market
characteristics. Journal of International Business Studies, 46(5), 596-619.
Bernroider, E. (2002). Factors in SWOT Analysis Applied to Micro, Small-to-Medium,
and Large Software Enterprises: An Austrian Study. European Management
Journal, 20(5), 562-573.
Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Clancy, H. (2015) “Why Microsoft’s ‘buy only what you use’ pricing strategy is a big
deal” Fortune, Available at: http://fortune.com/2015/02/04/microsoft-buy-
what-you-use/
Gituma, M. M. (2007). Effect of Maketing Mix on Sales Performance: Case of Unga
Feed Limited. Research Project Submitted to the Chandaria School.
Išoraitė, M. (2016). Marketing Mix Theoritical Aspects. International Journal of
Research - Granthaalayah Vol.4 (Iss.6), 25-37.
Suherly, H. A. (2016). Marketing Performance as The Impact of Marketing Mix
Strategy (7P) with Determination of Market Attraction and Company's
Resources. . International Journal of Economics, Commerce and
Management.
Rubens, P. (2016) “Why Microsoft continues to embrace the freemium
model” CIO, Available at: http://www.cio.com/article/3029322/software/why-
microsoft-continues-to-embrace-the-freemium-model.html

Thabit, T. &. (2018). The Evaluation of Marketing Mix Elements: A Case Study. .
International Journal of Social Sciences & Educational Studies Vol.4, No.4,
100-109.
Microsoft Corporation (2018). Annual Report

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