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Microsoft Analysis

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Introduction

Microsoft Analysis Introduction and Summary of Company History and Background Information Microsoft over the past 27 years has positioned itself as the arterial system of almost all computers rolled into use across the world. Albeit with no competition worth the name to challenge its existence leave alone on technology advancements, the company has still managed to keep pace with both felt and perceived needs of its customers and its niche remains robust thus far. Nevertheless disturbing winds have begun to blow. Its corporate governance is under the microscope and the world is watching as to how Microsoft is bracing itself for the challenges posed both by competition (however innocuous it may be at present) and technology proliferation. Let us look at Microsoft��s expansion plans and initiatives to integrate them to its existing competencies - Microsoft��s role according to Mr. Gates himself is to provide a software platform that allows everyone who is building applications to build far more powerful applications. - MOM (Microsoft Operations Manager) 2005, which is a key management software and Virtual Server product as part of simplification of the IT lifecycle have been launched recently - In hardware domain the company has had the benefit of exponential improvement in recent decades. During the first half of next year, the company is expected to have a very smooth transition from 32-bit to 64-bit systems, with total binary compatibility. This will provide the ability to mix 32-bit and 64-bit; a simple recompilation for any application using the full 64-bit address base. ...read more.

Middle

rating from Fortune for best company to work at and most admired company - Windows series, and Windows NT are globally known as the PC desktop operating system with a market share of above 80% - Participation in socially relevant philanthropic work in various countries has been a significant value addition in terms of corporate PR Weaknesses A) Major Weaknesses - Hardware manufacturers need to be motivated to pre-install Microsoft's PC operating system. Although training of computer professionals and workers is by and large done on Microsoft Architecture and this in turn creates a situation of inevitability for hardware manufacturers, their default support cannot be assumed. - Peripheral player in the Internet space and few products for Internet applications - Failure on the part of leadership to anticipate the impending growth or popularity of the Internet - Marginal or insignificant presence in the wireless market, WAN and Windows CE - Leadership is monolithic and a pool of thinkers is invisible if not absent. Mere compensation/ stock option packages don��t produce leaders B) Other weaknesses - Software Architecture remains its primary strength but has not yet developed a substantially new line of products - Continuous product launches and deadlines contributes substantially to monotony and employee fatigue - Employee turnover has increased from 6% for a ten year period to 7.4% - Falling sales in the operating systems and server software sectors - Elaborate 5-layers of management leading to red tape and dilution of two way communication within - Frequent reorganization, reorientation and autocratic shades do dampen employee creativity leading to a loss of key ...read more.

Conclusion

Market forces are dynamic as is technology and innovation. The corner stone or benchmark in business is market share. There are four ways to look at it. "" Improving market share by encashing opportunities of new markets and market segments "" Retaining market share in the face of threats and challenges "" Improving market share by utilizing value addition/new application opportunities of existing customer base "" Product diversification and innovation leading to altogether new role and share in the market. This has a telescopic effect on gross market share rather than on limited niche share In the context of Microsoft all the above possible strategies have been discussed. No doubt the company still enjoys pre-eminent position in its niche market. In the foreseeable future no major threat is perceived to this position. But the fact is its niche market of today is threatening to lapse into dilution and redundancy due to rapid overshadowing by Internet and Wireless devices and applications. This is not of course going to make the company obsolete by any stretch of imagination. However there are perceptible warning signals, which the company will do well to recognize, invest in right research and innovation and sustain its leading edge in spite of the market dynamics and increasing competition. The focus areas have to be in tune with evolving technologies and applications. As marketing by definition is to identify customer needs and to satisfy them, the company cannot always hope to thrust its products and applications on the customers. Microsoft has the resources to do it. It should be willing to just do it ...read more.

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