Microsoft (Strength And Weakness)


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Microsoft (Strength And Weakness)

  1. 1. Describe and evaluate strengths and weaknesses of their distribution approach and make suggestions for their future development By Vinayak Nandikal
  2. 2.  Company introduction  Microsoft Windows  Product description  Distribution channels • Individual sales W&S • Included with the PC W&S  Recommendations for future developments  Live Search  Service description  Distribution channels  Weaknesses and Strenghts  Recommendations for future developments  Conclusion Table of contents
  3. 3. Created in 1975 by Paul ALLEN & Bill GATES In 2008 it is 91,259 employees in 105 countries Two Main products: Other products: MSN, Encarta, PC accesories, Xbox
  4. 4. Microsoft Windows An Operating System(Main software of a PC) Price of Microsoft Windows in the USA: Distributed individually or included with the PC
  5. 5. Microsoft Office 2007
  6. 6. Individually distributed  You can buy it online at Microsoft stores or any of their online distributors  You can buy it at a physical store(computer store, supermarket)  You can use it at different places without buying it for e.g: universities  You can receive it from a Microsoft donation
  7. 7. Weaknesses  Piracy: 244 copies sold in two weeks in China  A cost: Low demand but have to provide this solution Donation is not a short term strategy
  8. 8. Strenghts Piracy: “let them pirate software developed by Microsoft -that increases the overall number of Microsoft software users and some of them may eventually convert into paying customers.” You get some market shares rather than profit You can even beat your competitor(Linux requires more discs in some cases) A better image; A Microsoft dependency
  9. 9. Included with the PC Distribution channels are then the same as the ones of a PC Bundling: from « The practice of joining related products  together for the purpose of selling them as a  single unit. » Illegal in most of the countries
  10. 10. Weaknesses  Under the threat of a huge trial (March 2004, the EU ordered Microsoft to pay €497 million)  Introduction of new competitors & low cost products:  Less profit on those products for e.g Windows XP on eee pc at 49€  Customer behaviour can drastically change
  11. 11. Strenghts  If Microsoft closed, the economical impact will be terrible;  Microsoft is almost unmovable, even if not preinstalled, customers are requiring it;  Some countries even authorized bundling(case of China) to face Piracy;  Customers are ignorant and mentality are hard to change;
  12. 12. Recommandations  Hard to recommand Microsoft something  Build an image such as setting up a « we are the good guys » policy by being more present in people's life(offering more products, training in public places)
  13. 13. Live Search  Microsoft Search engine  A recent technology for Microsoft(2004)  Google(1998), Yahoo(1994), Baidu(2000)  How Live Search can be so successful? Leading the market in only four countries: Colombia, Honduras,Rep. Dom, Angola
  14. 14. Distribution Channels  Through Internet, the user is then free;  Software, for e.g: Java, the user can be locked;  Hardware, the user can be locked;  Web applications, for e.g: Facebook, the user is locked;  His own products and services, for e.g: hotmail, the user is locked;
  15. 15. Weaknesses  A bad product(more resquests made from MSN rather than on Live Search itself)  Give a bad image of the company  Increase the unsatisfaction
  16. 16. Strenghts  Through those techniques Microsoft can overcome some barriers that its competitors cannot such as nationalism  To use those channels you need high capital and to have a large range of products and services
  17. 17.  They invest too much time in setting up good distribution strategies but what will happen if the customer discover the situation(being locked and using a bad product);  Microsoft should think about improving the quality of his technology in this field  Think too much about marketing(changing the layout, changing the name... « Kumo ») Recommandations
  18. 18. Conclusion “Bill Gates was not a computer wizard but a genius of marketing.” “I do not think that a company such as Microsoft Thinks about going bankrupt” Their distribution channels are until now unbeatable They should however as a security take care about their image, in the field of technology threats can happen at any time