SECTOR INFORMATION
• IT sector has achieved a phenomenal growth during the post-
economic reform period.
• It sector has grown manifold during the period 1991-92 to 2015-16.
• There are around 600 centres set up by the Indian IT companies in 78
countries catering to the It related requirements of people in over 200
cities, performing very well and showing remarkable growth in terms
of national GDP (NASSCOM analysis report).
• In the year 2015-2016, revenues has grown from 1.2 percent to nearly
9.3 percent.
• It sourcing market has grown from 52% in 2012 to about 56% in 2016.
• By 2020, It sector is expected to reach USD 225 billion target.
CONT…
24 29 32 32 32 34 35 37 41 44
50
59 69 76 87 96.5 108 117 126 137
0
50
100
150
200
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Indian IT Industry(US $bn)
CAGR 10.45%
Domestic Export
M A R K E T S I Z E
CONT…
52%
19%
20%
9%
Sector wise Breakup of Indian
IT Market(US$ bn) FY18
IT Services
Business Process Management
Software Products and Engineering Services
Hardware
57%
21%
22%
Sector Wise Breakup Of Export
Revenue FY18
IT Servies
BPO
S E C T O R C O M P O S I T I O N
PORTER’S FIVE FORCES
Threat of substitutes
Brand Loyalty: High
Switching Cost: High
Close Relationships: High
Industry Rivalry
Concentration of competitors: High
Diversity of competitors: High
Product/Price Differentiation: High
Threat of new entrants
Cost of entry: High
Economies of scale: High
Brand Loyalty: High
Bargaining power of buyers
Switching Cost: High
Buyer concentration: High
Bargaining power of suppliers
Switching Cost: High
COMPANY
OVERVIEW
• Microsoft company is a technology company.
• Develops, licenses, and support a range of software
products, services and devices.
• Segments:
1. Productivity and business processes.
2. Intelligent cloud and more personal
computing.
• Products:operating systems
cross-device productivity applications
server applications
business solution applications
desktop and server management tools
software development tools
video games
training and certification of computer system
integrators and developers
M
I
C
R
O
S
O
F
T
O R P O R A T I O N
SWOT Analysis
Strength
Dominant brand image
Product alignment with positive externalities
Strong alliances with other firms
Weakness
Vulnerability to cybercrime
Imitability of some products
Lack of dominant computer hardware products
Opportunity
Business diversification
Innovation for computer hardware products
Stronger security against cybercrime
Threat
Cybercrime
Piracy
Strong competitive rivalry
PRODUCT PROFILE
One Drive Word
Share Point Excel
Power Point
Outlook
Microsoft Teams OneNote
COMPANY NEWS
Microsoft sees sense, will give Office 365
admins veto rights on self-service
Power tools.
• From November 19, Microsoft will be able
to disable the self-service platform, on a
per-app basis.
• Microsoft will bypass the user’s Office 365
administrators and purchase Power
Platform tools Willy-nilly for work.
• Bypassing Office 365 thus prevent
coworkers from licensing and installing
PowerBI, PowerApps, and Flow
unbounded.
Competitor Analysis
12981
80176
0
20000
40000
60000
80000
100000
Competitor Analysis
Office 365 G Suite HP OpenView
Zoho Office Suite Quip Libre Office
IBM Connections
PRODUCT INFORMATION
• Office 365 is an integrated experience of apps and services, designed to help you
pursue your passion and grow your business.
• It gets applications like Word, Excel, Power Point and more.
• These applications get updates on monthly basis.
• Allow use of the Microsoft Office Online Suite on subscription basis.
• Successor to Microsoft Business Productivity Online Suite (BPOS).
• Aimed at corporate users.
• Allows cloud-powered email for customer service.
SWOT analysis of Office 365
Strengths Weaknesses Opportunities Threats
• Strong position and
momentum.
• Broad and feature-rich
offering.
• Strong organisational
commitment.
• Wide availability of
Implementation and
Development skills.
• Large and committed
ecosystem of resellers,
ISVs and service
providers.
• All-or-Nothing approach
results in low value for
light users.
• Functional gaps.
• Complexity.
• Difficult migrations.
• “New ways of work” on
the rise.
• Synergies with other
Microsoft products can
be further exploited.
• Applying advanced
technology assets.
• Driving CSP channel Sell-
Through into the SMB
market.
• Dissillusionment.
• New competitive fields
offer new chance to
competitors.
• Legacy of On-Premises
versions of the suit
anchors long-term
customers.
MARKETING MIX
Product
Price
Place
Promotion
• First version included Microsoft Word, Microsoft PowerPoint and Microsoft Excel.
• With time, it has shared features like OLE data-integration, common spell-checker and scripting language Visual
Basic for Applications.
• Microsoft has adopted a value-based pricing system and offers its product at mid-premium prices.
• Offering products at discounted price to the students in order to grab the youth market.
• Adopted Freemium pricing strategy (free usage of office 365)
• Microsoft has adopted both sales and advertising techniques to promote Microsoft office 365.
• Launched visible campaign for advertisement.
• Emphasize on the products, their versions and upgrades to create and maintain interest in the product
line.
• Office was introduced first time at COMDEX in Las Vegas.
• Offers Home Use Program or HUP.
• Adopted push strategy (direct and indirect selling).
SEGMENTATION TARGETING POSITIONING
Geographic Demographic Behavioral Psychographic
Region– Global
Marketplace
Density– Urban and
rural
Age– 16 and older
Gender– Male &
females
Life Cycle Stage-Bachelor
Stage young, single people not
living at home, newly married
couples young, no children, Full
Nest I youngest child under six,
Full Nest II youngest child six or
over
Occupation- Students,
employees, professionals.
Degree of loyalty- Hard
core loyal, soft core
loyal.
Benefits sought-
efficiency, accuracy,
speed.
Personality-
Determined &
ambitious
User status- non-users,
potential users, first-
time users, regular
users and ex-users.
Social class- Lower
class, working class,
middle class and
upper class.
Lifestyle-
Mainstreamer
Aspirer
Succeeder
Explorer
Reformer
Targeting- Universal Event Tracking, Remarketing
Location Targeting, Device Targeting,
Custom audiences.
Positioning- Microsoft uses two types of positioning
1) Multi-segment positioning.
2) Standby positioning.
PRODUCT LIFE CYCLE
ORGANIZATION STRUCTURE
CEO
Engineering
Groups
Cloud & AI group
Experiences + Devices
Artificial Intelligence and Research
Business
Functions
Business Development Group
Corporate, External and Legal affairs
Corporate Strategy and Planning
Finance Group
Global Sales, Marketing and Operations
HR Group
LinkedIn
Marketing Group
Worldwide Commercial Business
JOB DESCRIPTION AND JOB SPECIFICATION
Software Design Engineer (SDE):
• Apply technical talents and creativity.
• Develop next generation applications, OS and tools.
Software Design Engineer in Test (SDET):
• Design, develop and maintain automation system.
• Develop product testing strategy by utilizing innovative test
technologies.
Software Test Engineer (STE):
• Lead the charge to prepare a functional product for release.
• Write test plans and bug reports.
Program Manager (PM):
• Drives the technical vision, design and implementation of next
generation software solutions.
• Define strategy and features of a product from system architecture
to user experiences.
Selection Process:
Microsoft conducts 4 to 5 rounds to
select the freshers as SDE in their
organisation:
• Online Round
• Onsite Round
• Technical Round 1
• Technical Round 2
• Technical Round 3 (System
Design Round)
• Technical-cum-HR round
FINANCIAL ANALYSIS OF MICROSOFT
-50.00%
0.00%
50.00%
100.00%
HUNDREDS
GROSS PROFIT MARGIN o Gross Margin % = Gross profit (June 2019) /
Revenue (June 2019) * 100
= 82933 / 125843 * 100
= 65.90%
o Fixed assets added during the year = Sep 19 –
Sep 18 = 278,955.00 - 257,619.00 = 21,336
o Working capital of the year=80.3 bn
o Debt-to-equity ratio that ended in Sept 2019 =
0.72
Microsoft Office 365

Microsoft Office 365

  • 2.
    SECTOR INFORMATION • ITsector has achieved a phenomenal growth during the post- economic reform period. • It sector has grown manifold during the period 1991-92 to 2015-16. • There are around 600 centres set up by the Indian IT companies in 78 countries catering to the It related requirements of people in over 200 cities, performing very well and showing remarkable growth in terms of national GDP (NASSCOM analysis report). • In the year 2015-2016, revenues has grown from 1.2 percent to nearly 9.3 percent. • It sourcing market has grown from 52% in 2012 to about 56% in 2016. • By 2020, It sector is expected to reach USD 225 billion target.
  • 3.
    CONT… 24 29 3232 32 34 35 37 41 44 50 59 69 76 87 96.5 108 117 126 137 0 50 100 150 200 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Indian IT Industry(US $bn) CAGR 10.45% Domestic Export M A R K E T S I Z E
  • 4.
    CONT… 52% 19% 20% 9% Sector wise Breakupof Indian IT Market(US$ bn) FY18 IT Services Business Process Management Software Products and Engineering Services Hardware 57% 21% 22% Sector Wise Breakup Of Export Revenue FY18 IT Servies BPO S E C T O R C O M P O S I T I O N
  • 5.
    PORTER’S FIVE FORCES Threatof substitutes Brand Loyalty: High Switching Cost: High Close Relationships: High Industry Rivalry Concentration of competitors: High Diversity of competitors: High Product/Price Differentiation: High Threat of new entrants Cost of entry: High Economies of scale: High Brand Loyalty: High Bargaining power of buyers Switching Cost: High Buyer concentration: High Bargaining power of suppliers Switching Cost: High
  • 6.
    COMPANY OVERVIEW • Microsoft companyis a technology company. • Develops, licenses, and support a range of software products, services and devices. • Segments: 1. Productivity and business processes. 2. Intelligent cloud and more personal computing. • Products:operating systems cross-device productivity applications server applications business solution applications desktop and server management tools software development tools video games training and certification of computer system integrators and developers M I C R O S O F T O R P O R A T I O N
  • 7.
    SWOT Analysis Strength Dominant brandimage Product alignment with positive externalities Strong alliances with other firms Weakness Vulnerability to cybercrime Imitability of some products Lack of dominant computer hardware products Opportunity Business diversification Innovation for computer hardware products Stronger security against cybercrime Threat Cybercrime Piracy Strong competitive rivalry
  • 8.
    PRODUCT PROFILE One DriveWord Share Point Excel Power Point Outlook Microsoft Teams OneNote
  • 9.
    COMPANY NEWS Microsoft seessense, will give Office 365 admins veto rights on self-service Power tools. • From November 19, Microsoft will be able to disable the self-service platform, on a per-app basis. • Microsoft will bypass the user’s Office 365 administrators and purchase Power Platform tools Willy-nilly for work. • Bypassing Office 365 thus prevent coworkers from licensing and installing PowerBI, PowerApps, and Flow unbounded. Competitor Analysis 12981 80176 0 20000 40000 60000 80000 100000 Competitor Analysis Office 365 G Suite HP OpenView Zoho Office Suite Quip Libre Office IBM Connections
  • 10.
    PRODUCT INFORMATION • Office365 is an integrated experience of apps and services, designed to help you pursue your passion and grow your business. • It gets applications like Word, Excel, Power Point and more. • These applications get updates on monthly basis. • Allow use of the Microsoft Office Online Suite on subscription basis. • Successor to Microsoft Business Productivity Online Suite (BPOS). • Aimed at corporate users. • Allows cloud-powered email for customer service.
  • 11.
    SWOT analysis ofOffice 365 Strengths Weaknesses Opportunities Threats • Strong position and momentum. • Broad and feature-rich offering. • Strong organisational commitment. • Wide availability of Implementation and Development skills. • Large and committed ecosystem of resellers, ISVs and service providers. • All-or-Nothing approach results in low value for light users. • Functional gaps. • Complexity. • Difficult migrations. • “New ways of work” on the rise. • Synergies with other Microsoft products can be further exploited. • Applying advanced technology assets. • Driving CSP channel Sell- Through into the SMB market. • Dissillusionment. • New competitive fields offer new chance to competitors. • Legacy of On-Premises versions of the suit anchors long-term customers.
  • 12.
    MARKETING MIX Product Price Place Promotion • Firstversion included Microsoft Word, Microsoft PowerPoint and Microsoft Excel. • With time, it has shared features like OLE data-integration, common spell-checker and scripting language Visual Basic for Applications. • Microsoft has adopted a value-based pricing system and offers its product at mid-premium prices. • Offering products at discounted price to the students in order to grab the youth market. • Adopted Freemium pricing strategy (free usage of office 365) • Microsoft has adopted both sales and advertising techniques to promote Microsoft office 365. • Launched visible campaign for advertisement. • Emphasize on the products, their versions and upgrades to create and maintain interest in the product line. • Office was introduced first time at COMDEX in Las Vegas. • Offers Home Use Program or HUP. • Adopted push strategy (direct and indirect selling).
  • 13.
    SEGMENTATION TARGETING POSITIONING GeographicDemographic Behavioral Psychographic Region– Global Marketplace Density– Urban and rural Age– 16 and older Gender– Male & females Life Cycle Stage-Bachelor Stage young, single people not living at home, newly married couples young, no children, Full Nest I youngest child under six, Full Nest II youngest child six or over Occupation- Students, employees, professionals. Degree of loyalty- Hard core loyal, soft core loyal. Benefits sought- efficiency, accuracy, speed. Personality- Determined & ambitious User status- non-users, potential users, first- time users, regular users and ex-users. Social class- Lower class, working class, middle class and upper class. Lifestyle- Mainstreamer Aspirer Succeeder Explorer Reformer Targeting- Universal Event Tracking, Remarketing Location Targeting, Device Targeting, Custom audiences. Positioning- Microsoft uses two types of positioning 1) Multi-segment positioning. 2) Standby positioning.
  • 14.
  • 15.
    ORGANIZATION STRUCTURE CEO Engineering Groups Cloud &AI group Experiences + Devices Artificial Intelligence and Research Business Functions Business Development Group Corporate, External and Legal affairs Corporate Strategy and Planning Finance Group Global Sales, Marketing and Operations HR Group LinkedIn Marketing Group Worldwide Commercial Business
  • 16.
    JOB DESCRIPTION ANDJOB SPECIFICATION Software Design Engineer (SDE): • Apply technical talents and creativity. • Develop next generation applications, OS and tools. Software Design Engineer in Test (SDET): • Design, develop and maintain automation system. • Develop product testing strategy by utilizing innovative test technologies. Software Test Engineer (STE): • Lead the charge to prepare a functional product for release. • Write test plans and bug reports. Program Manager (PM): • Drives the technical vision, design and implementation of next generation software solutions. • Define strategy and features of a product from system architecture to user experiences. Selection Process: Microsoft conducts 4 to 5 rounds to select the freshers as SDE in their organisation: • Online Round • Onsite Round • Technical Round 1 • Technical Round 2 • Technical Round 3 (System Design Round) • Technical-cum-HR round
  • 17.
    FINANCIAL ANALYSIS OFMICROSOFT -50.00% 0.00% 50.00% 100.00% HUNDREDS GROSS PROFIT MARGIN o Gross Margin % = Gross profit (June 2019) / Revenue (June 2019) * 100 = 82933 / 125843 * 100 = 65.90% o Fixed assets added during the year = Sep 19 – Sep 18 = 278,955.00 - 257,619.00 = 21,336 o Working capital of the year=80.3 bn o Debt-to-equity ratio that ended in Sept 2019 = 0.72