Microsoft Corporation is a US-based global technology company with headquarters in Richmond, Washington. Founded in 1975, Microsoft’s mission is “to enable people and organizations throughout the world to do more and achieve more by creating technology that transforms the way people learn, work, play, and communicate”. Microsoft employs approximately 114,000 people on a full-time basis, 63,000 in the U.S. and 51,000 internationally (Annual Report, 2016).
Windows, Microsoft’s main product has been installed in more than 1 billion devices around the world. The technology company also has a solid presence in gaming industry. Xbox Live is connecting fans across Windows 10, iOS, and Android. Microsoft has a gaming audience on Xbox Live with 49 million monthly users and growing – up 33 percent year-over-year. This growth is driven in part by strong franchises like Minecraft, which has sold more than 106 million copies to date. Microsoft’s gaming roadmap over the next 18 months is anchored by two significant console releases – Xbox One S and Project Scorpio – and investments in growth areas such as virtual reality, video, and eSports (Annual Report, 2016).
During the fiscal year 2016 the company generated USD 85.3 billion in revenue, USD 52.5 billion in gross margin, and USD 20.2 billion in operating income. Adjusting for Windows 10 revenue deferrals and impairment, integration and restructuring expenses, revenue was USD 92.0 billion with USD 27.9 billion in operating income. The total cash return to shareholders for the same period reached USD26.1 billion, up 12 percent from last fiscal year (Annual Report, 2016).
Microsoft business strategy can be classified as product differentiation. The company develops advanced technological products and services and sells them for premium costs. Moreover, Microsoft business strategy is currently focused on “cloud-first, mobile-first”, growth through mergers and acquisitions and exploring business opportunities related to augmented and virtual reality. The multinational technology company also has certain weaknesses that include lack of innovation, weak position of Internet Explorer browser application and dependence on hardware manufacturers.
Microsoft Corporation Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Microsoft. Moreover, the report contains analyses of Microsoft’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
4. Organizational Structure
5. Organizational Culture
6. SWOT Analysis
7. PESTEL Analysis
7.1 Political Factors
7.2 Economic Factors
7.3 Social Factors
7.4 Technological Factors
7.5 Environmental Factors
7.6 Legal Factors
8. Marketing Strategy
8.1 7Ps of Marketing
8.2 Segmentation, Targeting & Positioning
8.3 Marketing Communication Mix
8.3.2 Sales Promotion
8.3.3 Events & Experiences
8.3.4 Public Relations
8.3.5 Direct Marketing
8.3.6 Personal Selling
9. Porter’s Five Forces Analysis
10. Value-Chain Analysis
10.1 Primary Activities
10.1.1 Inbound Logistics
10.1.3 Outbound Logistics
10.1.4 Marketing and Sales
10.2 Support Activities
10.2.2 Human Resource Management
10.2.3 Technology Development
11. McKinsey 7S Framework
12. Corporate Social Responsibility (CSR)
12.1 CSR Programs and Initiatives
12.2 CSR Criticism
List of Figures
Figure 1 Microsoft Organizational Structure
Figure 2 Cloud leadership by revenue
Figure 3 Market Share of Internet Browser Applications
Figure 4 Annual lobbying by Microsoft Corporation
Figure 5 Microsoft’s ‘Scroogled’ Marketing campaign
Figure 6 Example of Microsoft print advertisement
Figure 7 Microsoft Porter’s Five Forces
Figure 8 Global market share of desktop operating system as of April 2017
Figure 9 Microsoft value chain analysis
Figure 10 Microsoft production supplier locations
Figure 11 Microsoft McKinsey 7S model
List of Tables
Table 1 Microsoft SWOT analysis
Table 2 Microsoft product categories and products
Table 3 Microsoft segmentation, targeting and positioning
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- Published: May 2017
- 46 Pages