Microsoft
The impact of Microsoft's Mission, Vision, and Primary Stakeholders on its Success
The Mission and Vision statement of Microsoft express its strategic directions and priorities to its prime stakeholders. These two statements have a significant importance for the company's success as all its strategic moves and efforts are aligned according to what these statements entail. They show Microsoft's true concern for the key stakeholders as well as for the community in which it operates. The prime stakeholders of Microsoft include customers, investors, regulatory authorities, employees, suppliers, distributors, and business development firms. Each of these stakeholders has a significant role to play in the company's success and sustainability in its industry. For example, the suppliers provide it the required raw material to produce highest quality of technological products whereas distributors deliver it to the potential retailers and final customers. Similarly, employees act as an intellectual capital of the company and contribute towards its competitiveness and continuous growth (Microsoft, 2012).
SWOT Analysis of Microsoft Corporation
1. Strengths:
Microsoft enjoys a number of core competencies and distinctive strengths in its industry. Being the largest IT giant in the world, Microsoft is recognized for its wide range of computer hardware and software products and technical services, huge scale of operations around the Globe, and exceptionally high sales and financial performance in its major target markets. Microsoft also enjoys a high level of customer appreciation, a strong brand image, and trust of stakeholders. By capitalizing these strengths effectively, Microsoft has become one of the most innovative and competitive organizations in the Global IT industry (Microsoft, 2012).
2. Weaknesses:
One of the major weaknesses of Microsoft is low sales in different developing markets of the world. Microsoft has failed to ensure a high sales volume due to availability of competitive products in those markets at lower prices. The employee turnover of Microsoft is showing an increasing trend for the last few years which is a critical sign for the Management. Moreover, Microsoft has to downsize its low-demand product lines which negatively impact its operational performance. This downsizing decreases its competitiveness in those particular product lines. Some IT giants like Google have left Microsoft behind in the race of internet and communication by introducing innovative products and services.
3. Opportunities:
Microsoft can expand its business operations in new potential target markets and introduce more innovative products in order to cater the changing expectations of its customers and target larger market segments (Cadle, Paul, & Yeates, 2010). The major focus areas for Microsoft for its future competitiveness can be software, communication, and virtualization which can help it to achieve a distinctive position in its industry. It can further diversify its product lines to strengthen its market positioning in both high and low sales areas (Kurtz, MacKenzie, & Snow, 2010).
4. Threats:
Microsoft faces various threats from its external environment. The biggest threat is its industry rivals which not only snatch its potential customers, but also negatively impact the way Microsoft operates and strategizes to stay competitive. In its diversification strategies in new product lines, Microsoft faces a big threat from existing well-established businesses that manufacture those products. The costs of production, Research & Development, and high employee turnover are also among the big threats for the company's profitability and overall performance.
Michael Porter's Five Forces Model for Microsoft
1. Rivalry among Existing Competitors:
Microsoft faces a stiff competition from top industry rivals in each of its product lines. For example, the top competitors for Microsoft in the computer hardware market are Dell, HP, IBM, Sony, etc. Similarly, the top industry rivals in the software market are Adobe, Google, Symantec, Oracle, SAP, etc. In order to beat this biggest competitive force and maintain its market leadership, Microsoft has to keep itself abreast of the changes in its external environment, adopt a continuous growth strategy, and keep on introducing innovative products as a first-mover in its industry (The New York Times, 2011).
2. Threat from the New Entrants:
In addition to the existing well-established businesses, Microsoft also faces an intense competition from new entrants in the Computers and IT industry. These new entrants try to penetrate this industry by introducing innovative products at comparatively lower prices than existing competitors. Microsoft takes them as a big threat for its sales and customer base because they significantly decrease them in the short run
3. Threats from the Substitute Products:
Microsoft operates in a highly diversified and saturated industry where there are a large number of manufacturers producing both identical and non-identical products in the same product lines. The substitute software and hardware products directly impact the company's sales and level of acceptability. For example, Microsoft's...
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