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Transcript of Microsoft

Challenges & Opportunities

Business Model

Competitive environments






1975 -1981
1982 -–1985
Introducing Windows 1.0
1987 -–1990
Windows 2.0 – 2.11
Core Competency
- Expertise in operating systems and office productivity software.
- Create new products to compete with competitors.
Strategic renewal
- Change in strategy through a process of creating new services, capabilities, and knowledge bases.
Change implementation
Organizational leaders take action to support strategic renewal and maintain performance in a dynamic environment.
Strategy to success in Competitive Environment
Windows Live Messenger (MSN) OR
Working Environment
Outlook is a business focused webmail.
It replaces the Hotmail domain with a fresh top-level domain.
New functions available: Notes, Calender, Journals.
Launched on July 1999 with a
text-messaging system.
Soon supported
voice conversation, video call, games and upgraded customize elements
Shut down
by March 2013 worldwide except China.
Key Factors to success
Merged MSN with Skype
Windows Live Messenger chat could not communicate with Skype in Windows Phone
The X-box, which is using ChatPad and Kinect video chat is integrated with Messenger
Messenger had about 100 million users, while Skype has over 663 million users.

Microsoft Mobile Phone & Tablets
Partnership with Nokia on Feb 2011
Acquire Nokia’s devices & services business, license Nokia’s patents and mapping services.
Create new software.

The first Surface product announced on June 2012
Up coming! "Surface Mini" is expected at May 20.

Steve Ballmer said he wants a gentler and more collaborative Microsoft.
Reorganized a major company on July this year.

game console and the
Microsoft Surface
series of tablets.
The world's
largest software maker

One of the world's
most valuable companies
Develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services.
Headquartered in
Redmond, Washington
Microsoft Windows
line of operating systems,
Microsoft Office office
suite, and
Internet Explorer
web browser.
Founding and company beginnings
1990 -–1994
Windows 3.0–Windows NT
1995 -–1998
Windows 95
& The First Version of IE
1998–- 2000
Windows 98, Windows 2000, Windows Me
2001–- 2005
Windows XP
2006–- 2008
Windows Vista
Windows 7
2012 - 2013
Windows 8
Business Model

How do you feel about this company ?
CEO: Satya Nadella
new appointed CEO: Satya Nadella
shift in target market
different approach from old ways
mini reorganization of executives
Been with Microsoft since 1992
changed the cloud service with a growth of $16.6 billion to $20.3 in 2 years
"led the transformation of the company's business and technology culture from client services to cloud infrastructure and services"
Assessment &
Microsoft Windows
line of operating systems, and
Microsoft Office
office suite
$14.1 billion in profits for Microsoft on sales of $51.1 billion in 2007
$17 billion in net income in 2012
Spending $10.6 billion on R&D (research & development), $1.79 billion in “property and equipment”
Microsoft and Best Buy announced the launch of a new Windows Store at 500 Best Buy locations in the United States and another 100 in Canada, for a total of 600 in North America.
Instead of a store-within-a-store concept (which both Apple AAPL0.42% and Samsung now employ at Best Buy), the Windows Store represents a complete take-over of the PC department. Windows Stores will effectively replace the computer department at these 600 Best Buy locations.
But they will offer a wider range of Microsoft consumer products (PCs, tablets, and accessories, of course, but also Office, Windows Phone, and even Xbox) than just PCs.
I believe this move is very risky, but it could pay off. By eliminating all other computers in these stores, customers will almost be forced to buy Microsoft products.
I think that 500 stores is almost a perfect number to start with. It seems as though Microsoft isn't willing to take as big of a gamble as Samsung did with their 1400 store within a store idea. 500 stores seems like more of a trial.
Microsoft is facing the risk of a monopoly in the smart phone and tablet business. It is clear that Samsung and Apple are the highest sold products and Microsoft might just give up in these markets if they decide they cannot make enough money. Also Apple is rapidly growing in the computer industry and it is possible that Windows becomes obsolete. I do not see this happening for quite some time if ever, but it a possibility. And of course the gaming industry. Xbox and PlayStation seem to be the only companies offering gaming products at this time, but that is not to say there will not be a new entrant.
If the company announced some strategic moves recently or has been rumored to do so, what would be your assessments on these moves?
Are dramatic changes happening in the competitive environment of this company now? Will they happen in near future? How should the company react then?
What are the major challenges the company is currently facing or likely to face in near future? Why?
What are the opportunities the company currently has? What opportunities are likely to emerge? Why?
There are many changes currently going on with the Microsoft company at this time. Only a few months ago the Xbox One launched and is in competition with the PlayStation 4. Xbox One offers a multitasking feature, a newer version of Kinect, and voice control. These three features are different than what the PS4 have and might make the Xbox One more desirable.
The Windows Phone was released within the past year and is trying to make a footprint in an already tough market. The iPhone and Galaxy are neck and neck in sales for smart phones but Microsoft is pushing to make the Windows Phone successful.
Microsoft also released a tablet to stay competitive with Apple and Samsung. The Surface is a niche model, which works both as a computer and tablet. It offers a keyboard so that if the user put the tablet upright, it realistically is no different than a computer. However, if the user wants to use it simply as a tablet, the keyboard is detachable. Apple and Samsung do not offer a product like this and for that reason; the Surface could be very profitable.
The Microsoft product that has been around the longest is the Windows software and it continues to advance. Recently on Windows based computers, the desktop can be viewed as tiles instead of the old background. The tiles seem to be more efficient and slick for more tech savvy users but the old background can still be used for more inexperienced users.
All of these changes are ongoing and to stay competitive, new products and features will have to continue to evolve. No one really knows what the future holds for technology other than the fact that it continues to adapt and grow. Microsoft will have to stay competitive with companies like Apple, Samsung, and Sony if they want to stick around.
· The opportunities for Microsoft are endless because of how profitable the company is. Microsoft seems to be going with the flow and only seems interested in following the trends of other companies, but I have a feeling Microsoft will create a new product outright.
· Future opportunities include a possible merger with any of the current companies in any market. If Microsoft merged with Apple or Sony, it would eliminate competition and would be a monopoly of that particular market.
Microsoft acquired Nokia's handset division and finalized this transaction as of April 25, 2014 for $7.2 billion
winning back the hardware vendors that are now producing products for other competitors such as the chrome books
getting rid of third party developers have failed
"invested $150 million in Apple"- August 6, 1997 weeks within bankruptcy

Work Cited

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