Category: Microsoft

Introduction: Microsoft Corporation

Microsoft Corporation is based in the US and deals with manufacturing and development of software products applied in computers. The company develops variety of software which include; operating systems, server applications, business solution applications, information worker applications, high-performance computing applications, software development tools as well as MSN network which is an internet provider.

Microsoft’s operating system which has unique qualities in the market forms the major strength of the Company. The system provides dependable link between the computer and the user. In addition the Company also ventures into manufacturing application software as well multimedia market (Aaarkstores, 2010).

Microsoft Corporation is known to be technologically oriented company with most of its core processes operated electronically through avenues such as e-shops. The company heavily utilizes the use of online services and web-based information systems.

Such services as e-marketing provides the company with integrated means of reaching consumers hence allowing possible means of projecting current and future customer requirements within the market (Johnson et al, 2008, 51-59).

Figure 1: Microsoft and its competitors

Description of Customer Perceived value for the Company

Consumers are believed to always engage in internal and external processes of information search before attaching value to product or company. Internal information search involves the process through which consumer identifies all alternatives to the product/company from memory.

Such actions require companies to engage in aggressive programs which enable their various brands to become memorable to consumers and are mostly applicable to low involvement products or companies (Payne and Holt, 2001). While external search is applicable to high involving firms such as Microsoft as well as Apple amongst others.

In such a case organizations are advised to make available their product information through web sites. Consumers at the same time could use compensatory decisions which requires the consumers to critically analyze all the attributes of a company before pledging loyalty to them (Eggert and Ulaga, 2002).

Value should be examined from the customer point of view since expressions towards a product vary depending on the customer segment served. Within the various market segments, some customers tend to value more, certain product attributes compared to others.

High prices of products might represent high value to particular customer segment since the benefits are considered higher than money value attached to the product. In this case Microsoft’s operating system provides the customers with more useful ways of operating their computers (Barnes et al, 2009).

There is realization of increased productivity owing to easy communication through the integrated system which enables instant sharing of information.

There is faster and instant means of information sharing through the use of desktop applications as well as line of business which eliminates the essence of spending a lot of time in locating and communicating with partners. There is also sufficient access for customers whether travelling or at home and at the same time enables remote users to access directly security-enhanced presence without the use of Virtual Private Networking (VPN).

The operating system together with other Microsoft services enables business collaborations between organizations easier with a guarantee of protecting sensitive business information.

Microsoft services provide organization with connections through public IM data centres and Live Communications Server Internal users which enables effective connection between information workers and public IM services (Holbrook, 2003, pp 45-61).

Microsoft ensures the possibility of customers extending their current infrastructure investments by incorporating new technologies into the existing computing environments. For instance, the provision of Live Communications Server 2005 which forms part of Microsoft Windows server system which improves the functions of the collaboration infrastructure.

The software enables customers to share Ms Office and other applications from working station with other collaborative sessions such as encrypted IM. Microsoft Office System integration grants customers uninterrupted workflow system and at the same time enable Real-time communication with familiar Ms Office programs (Ahmed and Rafiq, 2002).

Consumers value Microsoft’s ability to eliminate communication delays within the business cycles with business partners through their advanced technology in Live Communications Server 2005. There is provision of instant access to business partners across organizational and geographical boundaries. This has accelerated improvement in business efficiency through familiar security enhancement.

Increased manageability, scalability and security are possible through development of Enterprise-Grade Real-time communications. Customers are as well provided with NT LAN Manager Capabilities which increases the control as well as the security of the supposed network through consolidating the necessary resources with Microsoft Windows Active Directory.

Companies benefit from real-time collaboration solutions enabling growth through easy scaling-up opportunities. This means that the up-time for enterprise communications is upgraded and at the same time the Microsoft SQL servers enables data recovery preventing further time and data loss.

The use of SQL-based Logging in Microsoft’s communication server makes it possible for internal auditing of the available IM transactions (Dubois, 2007).

Organizations at the same time are capable of enhancing the efficiency of their internal operations through application of various Microsoft services for the right duties. These include working together across departments with experts through contact centres. The process presence is enhanced through leveraging of knowledge and ideas hence enabling healthy advancement within entire enterprises.

At the same time there is the provision of building stronger customer relationships owing to the development in the unified customer touch points which reinforces relationships. The possibility of connecting to customers using appropriate tools is made possible through servers live communication links which has also made it possible what is referred to as agent-initiated cross-selling (Holbrook, 2003, pp 45-61).

The provision of familiar and modern Windows-Based management tools has assisted in simplifying the management and administrative tasks. Organizations are able to operate within timely schedules through new deployment tools.

The other value added to organizations apart from time management is that they can now save on training expenses through the use of soft wares such as Windows graphical user interface, which enables easy management of users, servers as well as global settings.

When integrated together with Live Communications Server 2005, windows-based management tools reduce server management and training costs (Woodruff, 1997).

Microsoft’s idea of rolling out new technologies within the market has met mixed reactions from the consumers. The company’s venture in developing Internet Explorer with Windows 98 and other integrated products has been at the centre of the antitrust suits.

This is seen as a direct assault on the company’s strategy on software development which is known to be innovatively involved in unveiling more features, technology and other products into their key components such as Windows NT, SQL server database, and E-mail Server Exchange. The strategies on all these innovations focuses on promoting functions and at the same time reduce prices.

The consumer reaction is generally mixed concerning the various practices involved since some view the advantages of the software bundles in terms of pricing as well as product integration while others view the processes as short-term applications (Holbrook, 1999). The company is also prepared to roll out its man flagship development tools as well as emerging middleware.

Microsoft at the same time plans to integrate developer’s toolkit systems which comprise AS/400, Oracle, DB2 and VSAM; in addition there is also bundling of Microsoft’s SNA Server. These soft wares would enable easy operations by large scale developers.

Microsoft’s automated and well organized system gives customers easy time when transacting their businesses and activities through the computers. Their operating system has enabled easy access to required websites enabling consumers to indicate every detail they require through websites hence making majority of work to be efficiently done.

The use of electronic sites provides the various steps necessary for completion of any business transactions between suppliers and consumers. The company also offer customers free trial version of their software’s on sale hence enabling buyer confidence after buying the product.

The company at the same time grants protection to its customers from fraudulent activities which may occur in the process business transactions. It operating system and software program enables application of all these activities (Ulaga and Eggert, 2005).

Microsoft Corporation designs programs which enable consumers to browse through products as fast as possible. The firm utilizes its strong brand for the purposes of driving sales of their software programs and other related services. The brand name at the same time is used for attraction purposes within the new market segments.

This is also utilized for the purposes of enhancing partnership between related companies operating within the same industry. The partnerships prove healthy towards market competition since they enable the process of co-branding of the new sites hence granting Microsoft a good market base for sale of its related products and services.

There is easier incorporation of activities and use of network systems such as MSN provided by Microsoft Corporation. Partnership with service providers enables the offer of enough space capable of handling new inventions for both small and established businesses (Piercy, 2009).

Evaluation of Existing Value Proposition

Clear definition of Company’s value proposition gives the required customer base. The value proposition helps in identifying the customers within the chosen market segments where the value seems most attractive. Microsoft has been able to face market competition owing to their simplicity of Integration between vendors and their systems. Such a strategy has not yet been adopted by other competitors such as Apple or Linux.

Microsoft servers are capable of running on Windows Platform making it easier for use by consumers. This has granted the Microsoft an advantage over their prime competitors since each contributor has to understand operations of Linux for easy working within the environment. Microsoft’s business model is different from other competitors within the market despite derivation of revenue as well as profit from the sales from the PC’s.

The difference comes from the selling of applications and also upgrades software’s to the base of PC’s. The company focuses on investing in new generation operating system and upgraded application software prices. The growth of the already installed base makes it impossible for competitors to match Microsoft’s current level of operation.

The company has got incentives for setting low prices to deal with the growth in the installed base. And at the same time set high prices for the productivity applications enabling the creation of stable financial base from the PC’s installed. The operation of Microsoft’s business models affects such elements as pricing, investment and time of release of new operating systems (Aaarkstores, 2010).

Good brand image forms a good basis for company’s future development and progress within the market. This has contributed to Microsoft being one of the sole leaders in computer software manufacturing. The Company utilizes the use of modern and upgraded technology in providing consumers with fine software and services associated with the preferred system.

Microsoft makes use of the available resources to provide and win considerable customer base hence an outstanding brand name. The company has supplied the market with high quality software products besides their operating system. At the same time their work environment contributes to the good image since they accord their staff considerable benefits and at the same time everybody treated as equal partners.

Strengthening its coverage requires the company to consider reinforcing its relationship with consumers and other potential partners within the marketplace. Microsoft’s level of creativity and innovative ability has been outstanding granting them competitive advantage over other players within the industry. This acts as a source of motivation to various companies willing to emulate their marketing strategies (Johnson et al, 2008, 51-59).

There is focus in providing efficiency through Microsoft’s products and services with the aim of capturing organizations. Generally Microsoft has upgraded most of their equipments from computers, websites, operating system and their software programs.

The appearing of their brand name on their products provides customers with the assurance of the products and services they are supplied with making the company enjoy global support from loyal clients. Their software engineers are professionally trained hence understands better market needs from professional point of view. This makes it difficult for pirates who are always in the process of selling counterfeit products (Aaarkstores, 2010).

Microsoft Corporation’s attribute of participating in corporate social responsibilities such as offering donations to institutions as well as not-for-profit organizations reinforces its good image.

The company is greatly involved in organizing seminars within various regions of the world and at the same time indulge in infrastructural development. Their services involve thorough training programs to customers through the company’s website and at the same time provide consumers with enough warrant time regarding some of their highly prized software (Aaarkstores, 2010).

Microsoft promotes its image in such manner as being actively involved in environmental issues. Research reveals that majority of consumers in America and other parts of the world are very conscious in buying products from companies which are environmentally conscious. Microsoft participates in community clean-ups besides donating their computers to schools and other institutions.

This has helped in improving and developing the image of the company amongst potential clients. Their interest in the well being of the community they serve earns the company greater value and favour amongst the population.

They also advance as far as partnering with the various environmental organizations in creating environmental awareness through their websites advising on the importance of conserving available natural resources (Johnson et al, 2008, 51-59).

Company’s business model is always dependant on array of players such as; competitors, substitutes, complementary organization, customers as well as suppliers. Microsoft for example complemented so well with Intel to provide the market with valuable products. However, much focus has been given to interdependences between competitors and at the same time between buyers and sellers.

Business models have the capability of either reinforcing each other or detracting through competition. Microsoft is currently present in various business sectors such as videogame systems as well as operating systems for the PDAs (Personal Digital Assistance) (Johnson et al, 2008, 51-59).

Microsoft Server has the capability of delivering instant messages providing scalable enterprise-grade solution. The system offers enhanced security, seamless integration alongside other Microsoft products and services. The company also offers necessary extensions in their industry-standard development platform.

Such upgraded services have enabled organizations to save on costs as well as gaining ground on improved business efficiencies, increased productivity, and improved security on Intellectual property through provision of easily managed and available solutions (Aaarkstores, 2010).

Microsoft bases their services in the presence of devices which enables instant messaging and at the same time revealing other devices readiness for communication. The devices provide complete picture concerning the user’s status and the nature of their alleged environment made possible through the use of Microsoft CRM. Customers are capable of predicting before time if their devices are ready and available for use.

The presence of groups enable point-and-click access initiating instant sharing hence decisions becomes easy to create through Microsoft office programs enabling easy team-centric communications (Aaarkstores, 2010).

The company has organized plans based on the available resources such as capital. Microsoft has stable capital base generated from great deal of cash on hand enabling them to capture available opportunities within the market. This gives them considerable advantage over small software firms having limited capital from cash on hand, hence forces the small firms to forego great investment opportunities.

Microsoft tends to make its strategic plans from corporate level concerning issues on providing high quality software and services to customers. Such plans always involve heavy and aggressive capital investment. At the same time the company makes plans at business unit level making it possible for the business to include additional services besides operating systems and applications software.

Such services include provision of internet services as well as video games. This means that the management team gets involved at different capacities making all decisions central to the assigned areas which make accountability easier (Zeithaml, 1988).

Microsoft at the same time makes plans at the functional level allowing the specialization and accountability easier. Such strategy is applicable especially in marketing where prices of Microsoft software requires adjustment based on the increasing demand. The company’s scope needs reasonable definition for the purposes of capturing the existing market opportunities.

Therefore, Microsoft needs not to identify itself only as Computer Company since such definition may limit the nature of services provided. The mission of the company incorporates in broad terms the different groups of consumer segments served with appropriate technology involved (Frow and Payne, 2008).

Figure 2: Diagram showing the processes for on-line sale of an Item

Compare and contrast the value proposition with that of the leading competitor in your sector

Both Microsoft and Apple Inc aim at satisfying the needs of their respective customers. This is since potential customers differ in their satisfaction levels and at the same time not all customers have the same needs. Different kinds of customers have got different types of preferences and needs more than that which organizations can handle.

Different segments carry varied weights based on the kind of needs demanded hence require change in marketing mix used. However, both companies apply the use of differentiation methods for the purposes of reaching their targeted customers. They all fine-tune the elements of their respective marketing mix for the sale of computer products and services.

The volume of sales made on the PC’s at particular times depends on the nature of customer value attached to the microprocessor as well as the operating system. The other low values are captured through OS pricing which also determines the coordination between microprocessor and operating system. Previously Apple’s iPod dominated the market as it was seen to be portable as well as its capability to handle digital player segment.

The device made Apple Inc to hold over 75% of the US market share since the year 2001. However, the device got a big challenge when Microsoft launched similar device referred to as Zune in the iPod segment. Zune attracted more interest and attention compared to Apple’s ipod in terms of features and pricing forcing Apple to reduce its prices by $ 50 in the year 2006.

At the same time Microsoft launched a competitive browser to match Mozilla’s Firefox, the browser referred to as Internet Explorer 7 assisted the company in recovering the market segment lost since the year 2004. The software incorporated various features adopted from Mozilla such as integrated search window, tab browsing as well as pop-up window blocker.

Such development was countered by Mozilla through release of Firefox 2 which was much up-graded. The strategy sparkled war between the two entities since they each wanted to dominate the market (Fifield, 2007).

In conclusion, Microsoft Corporation stands as one of the most successful firms having great deal of technology alongside experienced staff capable of designing software. Their image value wins them considerable market share and respected brand name. However, some units of Microsoft records losses making MSN incapable of achieving desired targets within the market.

Besides, the company is faced by various threats which include rapid development from other sectors owing to high economic growth and economic downturn which has affected normal operations owing to high energy costs. Despite all these, Microsoft always takes the opportunity of having strong brand name within the market, hence enabling them to venture into the hardware market.

Strong brand name has enabled the company to become trusted source of consumer services in spite of the low sales recorded during recession. Few weaknesses experienced within the company calls for wise decisions in the area of resource allocations. Microsoft is capable of promoting this by pumping enough resources into MSN owing to their good financial base (Andreson et al, 2006).

Implementation of new value proposition that will match the value criteria of customers

The firm should fulfil its social responsibilities by participating in environmental programs. This has so far enabled Microsoft to win consumer loyalty and at the same time improve its public policies. At the same time the company’s public relations helps in the process of reinforcing their marketing techniques through the internet search engines.

The process assist in improvement of sales owing to the fact majority of the customers are capable of applying the use of internet technology. Integration of marketing communication software within Microsoft business system prove vital to the organization since it assists in coordination of strategic transactions within the firm.

Public relations have since helped the firm in effective communication since they are able to link directly to customers giving right information about their various products and services. This provides uniqueness of products within the market giving the company ability to attract consumers through their captivating information displays.

At the same time it is possible for the firm to earn political goodwill through its social and charitable actions. Microsoft is also capable of foregoing temporary profits through temporal reduction in prices for the purposes of attracting attention hence increasing the demand. Specific actions such as increasing the market share through gaining more distribution stores are of concern to Microsoft.

Appropriateness as one of the attributes of Microsoft’s resources should be considered, since it determines the level of financial performance which ultimately leads to attraction of investors. The attribute ensures full utilization of research and development which assist the firm in financing of innovative activities and production of new devices.

The nature of financial base also largely determines the various profitable activities guaranteeing the company’s sales. In the same line sustainability also represents one of the most crucial attribute of the business models. This is since the uniqueness of the product determines the duration of sustained earnings from the sales of the product (Kotler et al, 2009).

Major achievement is enablement of First-Contact resolution where presence of employees is determined through real-time. This reinforces communication since availability of clients is easily detected through available media. There are always frustrations on the side of consumers especially when they are unable to reach their correspondents with right information at the right time (Ulaga and Chacour, 2001).

Products and services provided by the company are currently selling hence having value for the market. This should make the Company to involve provision of other related services enabling the sale of computers hence acting as rich sources of the company’s revenue.

Microsoft Company should at the same time cooperate with vendors within the supply chain to enable extension of their additional services for the convenience of their clients. At the same time the firm offers training facilities to clients hence helping them improve on their online application skills.

Microsoft has also created several sites which assists in the sale of consumer based goods like used cars providing their price information and quality details (Lindgreen and Finn, 2005).

Internal and external Plan for Microsoft Corporation

Microsoft’s goals focus on different aspects of the organization’s management. Their planning basically focuses on impacting the four functions of management. The internal planning incorporates directions in the product processing, human resource management as well as efficient utilization of assets. These include good financial management, creation of conducive working environment to all employees.

On the other hand their external plan incorporates such issues as partnerships with other potential companies, political and legislative influences, technological innovations as well as environmental concerns. Partnerships and collaborations incorporate demographical changes within the workforce. The company plans to be accountable towards laws and at the same time offer equal opportunities to all its employees.

The Company tend to improve on the nature of their service delivery mechanisms and information set-up through new inventions. This would require radical change in the management team for the purposes of matching external competition on quality workforce.

Making the environment safe for habitation forms one of the top priorities for the company since they consider following strict legislative rules in the process of product and service distribution.

Conclusion

Microsoft utilizes public relations effectively since they use all the media channels including websites to provide necessary information to customers. The services are also provided locally through linkages with their main servers at cheaper and affordable prices. The use of company local sites in marketing has enabled consumers to quickly locate their various much needed products saving on time and money.

The company has expanded its services equally throughout the world within every region some of which include; North and South America, European Countries, Africa as well as Far East countries connected through internet.

Microsoft Corporation offers customers products within wholesale markets, there is also services available at retail options and structural efficiencies. The Company offers clients free listing services as well as intensive sales promotion services.

Reference List

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Introduction

For organizations to be competitive in the current global economies, they are required to put in place certain measures and strategies. In a single industry, the industry players are in constant competition. Only effective strategizing is known to influence the outcome of this competition.

This essay discusses the competition of two companies in the same industry for the same internet deal. The paper focuses on the strategies they have put in place. The case involves competition between two of the leading computer and internet companies in the world, namely Microsoft and Netscape. These companies enter complex negotiations in an attempt to win the contract by two organizations, which are America On-Line (AOL) and KMPG.

Effectiveness of the Strategies

Microsoft and AOL Deal

The strategies put in place in the negotiations between AOL and Netscape were initially ineffective. In the beginning, AOL was inclined towards the services of Netscape based on the opportunities that the two companies could develop if they worked together. AOL’s management viewed Microsoft as a common enemy. Therefore, it (AOL) wanted to award the contract to Netscape to counter Microsoft and/or prevent its further growth and expansion.

Poor strategies on the side of Netscape can be witnessed in the making of this offer. The company’s executives knew that AOL would get them to use their services. However, they were slow in engaging AOL seriously. Engineers in Netscape were not keen on the deal that was pending. Instead, they initially opted to work on other opportunities. Netscape failed to strategize and/or tag stringent measures on any possible partnerships between it and AOL, thus making the company reconsider its interests.

Microsoft had a number of reasons that the deal between it and AOL would not be possible. However, it approached the negotiations with confidence, but from the losing side. AOL was known to be in partnership with some of Microsoft’s competitors. This strategy was enough to make the deal hard to enter.

Eventually, a deal was sealed between AOL and Netscape as many had expected, although there was a positive reaction from the markets of these companies. However, Microsoft put in strategies to ensure that it had a deal with AOL that was far better than the one between AOL and Netscape. It gave AOL a far better deal where its (AOL) clients would access services better, thus making the company more visible on the internet. A number of benefits would also be enjoyed between Microsoft and AOL in the new deal.

Microsoft’s strategies were effective in winning the deal with AOL. The company decided to remain patient with the deal even after negotiating the agreements between AOL and Netscape. These strategies ensured that the company managed to win the better part of the deal, as opposed to Netscape that worked with the surety of winning from the start. It thought that it had no major competitors since all factors had been working in its favor.

KPMG-Netscape Deal

In this second competition platform, Microsoft’s strategies were not enough to ensure that it wins the deal with KPMG. Some of the things that worked against it include the expensive changes that KPMG would have to make in its (Microsoft) operations to ensure that was the leading platform in the industry.

If Microsoft were to win the deal, KPMG would have had to upgrade its software. This situation would have been expensive in the end. The strategy that Netscape used to ensure it won the deal against Microsoft included the willingness that it had demonstrated in supporting the existing KPMG infrastructure.

The deal between the two companies had a number of benefits for Netscape. For instance, it would benefit in the competition against Microsoft. The company’s browser sold thousands of copies after the deal. This amount was more than what Microsoft had sold.

The deal also contributed to the expansion of the company internationally through the introduction of the browser that was run by KPMG on the global front. This shows that the strategy applied by Netscape to win the deal with KMPG was efficient since worked in its favor. On the other hand, the strategies put in place by Microsoft were not effective, and hence the reason behind its loss of the deal.

Microsoft was unable to provide a match against Netscape in the bit of the deal with KPMG. One way in which it was unable to achieve this goal is through the retention of the charges that would have taken effect once the deal between the two was struck. In addition, Microsoft managers and sales representatives seeking to win the deal between Microsoft and KPMG were unable to assure KPMG of the profitability of the deal.

The strategies it put were not sufficient to counter the offer made by Netscape. While Netscape offered to lower its standards to accept the new deal, Microsoft was not willing to ensure adequate capacity to host the new organization. The strategy used by Netscape was based on the calculation of the total value of the deal between its company and KMPG. Although downgrading Netscape’s software would cost it in the technological capacity, the result of hosting KMPD was such that it would cancel out this effect.

The strategy worked. Hence, Netscape was able to market itself using the new platform to thousands of people. In a year, the deal was worth Billions, with Microsoft only being left to reconsider the decision in terms of why the strategies it put in place did not work. Some of the other strategies that did not work for Microsoft include the refusal to allow a downgrade of its capabilities. The introduction of an intranet in KMPG’s operation meant that only the organization and its clients would use the new system.

To Microsoft, this issue was not adequate to allow a downgrade of its software to allow PPMG to use Microsoft to deliver services. The executives at Microsoft did not know of the strategies being put in place by Netscape to ensure that it wins the deal. Should Microsoft have won this particular contract as it won the first one, it would have increased its market domination over Netscape through the addition of new clients along KPMG’s intranet.

Conclusion

Both Microsoft and Netscape made their presentation to AOL so that the company can decide who wins the contract of providing them with a browser for their online services. The negotiations were dramatic. An initial deal made between AOL and Netscape was only overturned after a day, with Microsoft taking the day. The two companies, Microsoft and Netscape, intensified competition after the incident.

A year later, they met again in another intense competition. In this second competition, Microsoft and Netscape are competing to win a contract with KMPG. This second competition for a contract between the two companies was as intense as that for an AOL contract. After intense competition from Microsoft, Netscape wins the battle. The whole scenario can be explained in terms of the business strategies that the two companies were able to put in place to win the deals as discussed in the paper.

Microsoft Corporation has been a monopoly in computer operating systems and software market for a long period of time. It has been accused of violating anti-trust laws and using noncompetitive practices to dominate the market. The current market share of Microsoft is large, thus, enabling it to remain a monopoly in the operating systems market for decades.

Research has revealed that Microsoft has a 93% market share despite a stiff competition from other technological firms. Competitors, such as Macintosh and Linux have competed with Microsoft for a long period. However, Microsoft has managed to control the largest portion of the market. The declining innovativeness and creativity of Microsoft might have adverse effects on its market share.

Microsoft behaves like a monopoly because there are a few innovative competitors in the market. It has used several strategies that other technology firms have failed to execute in order to control and maintain the large portion of its market share. First, it has developed strong relationships with other technological companies to maintain its dominance.

For example, it has collaborated with several video and audio streaming companies to extend its monopoly in providing multimedia content to its consumers. Secondly, Microsoft has invested in emerging technology companies to eradicate competition that these companies introduce in the market. This has ensured that technological innovations are in line with Microsoft’s plan for dominance.

Thirdly, Microsoft has collaborated with several learning institutions, which have helped retain its dominance in the desktop market. Monopolies usually result from perpetuation of uncompetitive practices by companies or firms that prevent other companies from penetrating the market.

It is difficult for other companies to acquire a sizeable market share under prevailing conditions because of entry barriers created by Microsoft. From a legal and economic perspective, Microsoft’s market share is large enough for it to behave like a monopoly.

Dead weight loss refers to loss of economic efficiency by a firm, company or organization that is caused by monopoly pricing, taxes or external factors. As such, Microsoft is a dead weight loss to its economy because of several reasons. First, monopolies usually incur great expenses because they spend a lot of money in order to maintain their monopoly in a specific market.

This increases the average total cost of producing a product or service. For example, Microsoft has spent a lot of money in legal battles to maintain their monopoly. Secondly, monopolies attract high taxes from the government. The more costly a product or service is, the higher the tax a firm or corporation pays for the product or service.

If Microsoft was not a monopoly, taxes would be lower because competition from other firms would result in cheaper products that would attract lower taxes. The prices of Microsoft’s products could be compared to a private tax that has the same dead weight loss that most government-imposed taxes bear.

With current advancements in technology, Microsoft is gradually losing its monopoly. Despite the fact that it earns high profits from its products, Microsoft has been stagnant over the last decade. It is unable to compete effectively in emerging markets, such as development of software for mobile devices due to lack of innovation.

Judge Thomas Penfield’s statement that Microsoft enjoys a monopoly is true and valid. Microsoft has a large market share of operating systems that are compatible with most personal computers. In addition, it has established barriers that hinder entry of other companies and has forced consumers to depend on its operating systems due to lack of alternatives.

The judge’s ruling validated the claim that Microsoft is a monopoly and controls a large market share. The judge was correct because Microsoft has used anticompetitive strategies in the past to maintain its monopoly. Microsoft integrated its web browser into its operating system in an effort to eliminate competition from other software companies, such as Netscape.

Today, it collaborates with other software companies, thus, leading to anti-competitive agreements that eliminate competition from those companies. The ruling of the judge is consistent with the findings of recent studies on the dominance of Microsoft. Microsoft’s monopoly has elicited debates because it has eliminated competition from other companies by using anticompetitive strategies.

In addition, its monopoly has harmed consumers because they have no option but to use Microsoft’s browser and other software integrated in their operating system. In addition, the monopoly has resulted in high prices that have also harmed consumers adversely. The conduct of Microsoft of using anticompetitive strategies was intended to suppress competition from companies that produced products that were a threat to its monopoly.

Defenders of Microsoft have always reiterated that current technological advancements have reduced Microsoft’s monopoly. However, they ignore the fact that the judge put such considerations in his ruling. For example, Linux introduced an operating system that failed to quell Microsoft’s dominance in the market. However, with the current trend in the software market, Microsoft’s monopoly may soon be eradicated.

Microsoft is no longer innovative as it was in the past decades. The emergence of modern computing necessitates innovation and creativity in order to meet its demands, which Microsoft has failed to do. New entrants into the software market, such as Google are gradually eliminating Microsoft’s dominance.

In addition, Microsoft has failed to keep up with the demands of modern age computing, such as the need for software for mobile devices. The development of the Android operating system has presented a blow to Microsoft. Android is open-source software that gives software developers permission in order to adapt it to their needs.

Operating systems that are developed by Linux and the Apple are gradually becoming more acceptable for users. Most companies have developed operating systems that perform better than Microsoft’s Internet Explorer does. For example, Google Chrome and Mozilla Firefox are some of the best web browsers. They have included features that have improved security and speed when surfing the internet.

Microsoft has not improved its browser for a long time, and that is one of the causes of its waning popularity among users. Microsoft’s waning dominance of the software and operating systems market is evident from its current struggles to develop applications that guarantee its monopoly in the market. In addition, the ruling by Judge Jackson was a great blow to Microsoft’s dominance.

Even though Microsoft currently controls a great portion of the market, its dominance is waning, and in a few years, it will not be a monopoly any longer. The creativity and innovation that are exhibited by emerging technology companies is enough proof that Microsoft will soon lose its dominance and consumers will have more options. Diversity is an important aspect of the operating systems market.

Marketing is an integral part in an organization; when devising the marketing strategy to adopt marketing managers need to understand the target market of their commodities. Different products are likely to have a number of customers in different parts of the world; marketers need to segment the market and decide the specific area, age-gap, economic status, and the social well being of the market to focus on.

Market segmentation is a marketing approach where managers establish their market segments or focus market: focus market is a homogenous subset of the main market, which share similar characteristics that make then demand/require similar goods.

Whether in the service or good industry, companies need to have effective marketing policies; Microsoft Corporation is an American multinational headquartered in Redmond, Washington. To sells its products; which are services, the company has enacted effective marketing policy (Anctil, 2008). This paper discusses the marketing approach as adopted by Microsoft.

Microsoft Corporation

Microsoft Corporation is an international developer, manufacture, supporter, seller, and licenser of a wide range of products and service for the computing industry. Although the company is located in the United States, it fetches its market from different parts of the globe; with the wide market the company has an aggressive marketing team.

The company was initially incorporated to sell BASICinterpreters for the Altair 8800 on 04^th 1975 however with innovationa dn invention, the company advanced its services to market MSDOS in the mod 1980’s. some of the competitors that the company has to contend with include IBM and Apple Inc.

Describe the main line of business of the company

Microsoft Corporation manufactures and sells operating systems for information communication gadgets like computers and laptops; currently the company has five main products divisions as Microsoft Business Division, Windows & Windows Live Division, Online Services Division, Server and Tools, and Entertainment and Devices Division.

Names four of the countries in which the company operates

Microsoft operates in the following nations: United States, United Kingdom, China, and South Africa.

Marketing Mix for Microsoft

With the similarities of a market segment, an organization is able to develop effective marketing strategy where focus shifts to devising the correct method to sell and address the needs of the target market.

One common method in contemporary business environment to strategize for target market sales is the use of marketing mix (marketing mix looks into four main areas of the established market as price, promotional, places, and product).

In a nutshell, a marketing mix is meant to ensure that products are well promoted to customers, they are available when required by customers and they have a price that reflect the quality of the products/services must add value to consumers/users.

Competition

Although Microsoft Corporation is a leading developer, seller, and marketer of operating systems, the company has a number of competitors which include IBM, Apple, and Google, Linux Operating System, Mozilla, and Opera. To cub competition the company always improves its products with time.

Target market

Target market refers to the specific class of people with certain homogenous characteristics that a company focus on; After developing a marketing segment, Microsoft next step is to develop mechanisms to enable sales in the target market. Microsoft target market are manufactures and users of electronic gadgets that use their operating systems; to sell to the market, the company ensures its has an effective marketing campaign.

For instance when selling to computer manufacturers, the management uses word of mouth to sell the products. The company’s effective marketing mix ensures that goods are available to the target customer, when they need them and they are affordable.

Having the marketing segment in mind, then the company can know the kind of products that will be produced (Campbell, Edgarm& Stonehouse, 2011). The following chart shows how a marketing strategy can be developed:

Product strategy

With advancement in information technology, research and development department at Microsoft have taken the initiative of undertaking wide research and coming up with products that are more user friendly and can handle more information transmitted via computers.

With the product strategy, the company ensures that it develops high quality packages are sold to customer; the success of the company is dependent on the quality and reliability of the products; when products are of the right quality and meet the standards of the people, they are likely to be competitive amidst competitor products.

When a company is developing a product, there should be the need that the product is supposed to fulfill. The company ensures that it improves one product after the other, for instance since MsDos, there have been other better versions of operation which include window XP, Window Vista, Window 2003, and Window 7.

Distribution strategy

To reach to the target customers, the company has devised different method to reach the target customer; depending with the products/ the services, the company sells them in disks and over the internet where someone can download and use the services.

The method of distribution enables the company to reach its target customers with ease; with the option of downloading a software, the company has been able to sell its products in different parts of the world successively (Kotler & Denize, 2008).

Communication strategy

Having products and services is the start point, the company has to ensure that it communicates to the target customer of the existence of the products/services. To undertake this role, Microsoft uses a mixture of approaches. Marketing communication denotes the planned activity of disseminating certain information to a target audience in order to create a favorable and receptive scenario for certain a product, service or idea.

The most basis method that Microsoft adopts is the use of word of mouth; the approach is used for corporate customers where marketers physically sell the products to the companies; with the advent of competitive corporate culture, the relevance and urgency of marketing the method is effective to sell wide range of the company’s products.

According to marketing gurus a well-designed and thoroughly crafted marketing communication strategy can provide a definite competitive advantage to an organization; at Microsoft, the marketing department is given the mandate of determining the best communication strategy that the company should implement.

Microsoft marketing department looks at the prevailing corporate scenario, and then c up with the best policy to sell its services (Kotabe & Helsen, 2004).

Pricing strategy

Microsoft sets prices that are competitive in the market and offer maximum returns; it ensures that the products reflect quality it is the policy of the company that prices set should be attractive to the customers. The cost of services can break or make a company, it is likely to make services/products competitive and convincing the customer to buy them is fast.

The company sets its prices using premium pricing approach and price skimming strategy. price skimming strategy and premium pricing approach are pricing methods where a company sets products prices at relatively high prices than that offered by the competitor; the strategy is particularly effective with unique or new products in the market.

Price skimming strategy is an approach used by companies with strong brand name in the approach, Microsoft is one such company thus it uses the method to reach to target customers. The company use its name to charge expensively for their goods, as people will believe that they have good services; it also a strategy to capture the high-class people in the economy that think that expensive is quality.

The reason for the pricing model and skimming method is because the model rewards a new innovation in a product which conforms to the nature of Microsoft; Microsoft has a strong brand name thus it can effectively use price-skimming strategy.

According to marketing theory of brand extension, price-skimming strategy can be an effective method of pricing when the company using it has a strong brand name; Apple falls in the category (Fred, 2008).

Describe any differences observed in the implementation of this concept, from one country to another

Although Microsoft Corporation has a centralized marketing team, the company takes into account cultural, ethnical, and social-economic differences in different countries. With the above understanding, marketing campaigns are custom-made for different countries.

For instance in developing countries where access to computers is limited, the company has concentrated on disk-software sales while in developed countries the company uses downloaded software method.

References

Anctil, E. (2008). Marketing and Advertising the Intangible. ASHE Higher Education Report, 34(2), 31-47.

Campbell, D., Edgar, D..& Stonehouse, G.(2011). Business Strategy: An Introduction. London: Palgrave Macmillan.

Fred, D. (2008). Strategic Management: Concepts and Cases. New Jersey: Pearson Education.

Kotabe, M.,& Helsen, K.(2004). Global Marketing Management. New York: John Wiley & Sons.

Kotler, P., Denize, A. (2008). Principles of Marketing. Frenchs Forest NSW: Pearson Education Australia.

Introduction

Joint venture is a form of temporary business partnership based on mutual benefit. Microsoft and NBC News had a joint venture through MSNBC.com. However, substantial strategic differences led to breakup in 2012. This paper will examine the joint venture between Microsoft and NBC News (Stelter 1).

Microsoft’s business objective in joint venture with NBC News

Microsoft’s joint venture with NBC was aimed at seeking growth strategy in online digital content. Microsoft was the largest software maker in the world yet it was struggling in online news service. A joint venture with NBC News at the time was viable as it enabled Microsoft to tap into the new business environment of online news service. It should be noted that NBC News was one of the pinnacle sites for general news in the United States. Moreover, NBC News sites were ranked fourth in terms of traffic.

Microsoft management believed that the joint venture would open it to a new platform of online news service thereby fulfilling their growth strategy in digital content. Through the joint venture, Microsoft would tap into existing NBC News traffic. Additionally, Microsoft would plan adequately before setting up their platform. In essence, Microsoft would use NBC News to expand into a new venture appropriately and without considerable economic risk as opposed to starting an online news service from scratch (LBSR 1).

Why Microsoft preferred a joint venture rather than an outright acquisition in this case

Acquisition is essential in implementing business strategy, especially growth strategy in a new venture, as was the case in Microsoft. However, acquisition depends on various factors such as the type of business, the cost of acquisition and the projected profit margin, among others. Additionally, it should be noted that acquisition is best executed when dealing with a competitor where the deal results in direct transfer of the competitors’ customers to the company (Waggoner 1).

However, when moving into a new venture, like sale of digital content, which had strong players like AOL, CNN and Yahoo, Microsoft had to collaborate with another business player to assess their ability in the market (Liedtke 1).

Therefore, Microsoft’s choice of a joint venture rather than an acquisition was important as it enabled them to assess their performance in the market before deciding to go solo. Moreover, Joint venture offered Microsoft adequate time to explore the new venture and strategize adequately for either acquisition or start up (Goedhart, Koller and Wessels 1).

Why the joint venture unraveled and whether it would have been better for Microsoft to pursue a solo venture or acquire NBC News outright from the beginning

Joint venture unraveled because the two companies developed different strategies during their partnership. It is clear from the views of both companies’ representatives that they had different strategies for moving the joint venture ahead. The companies felt stifled from expressing their visions for the joint venture. For instance, Microsoft complained that it was being limited to MSNBC.com news even though users wanted multiple news sources (Liedtke 1).

Moreover, the company was bothered with the requirement to feature content from MSNBC.com in all their websites. Additionally, MSNBC’s strategy on cable channel was seen as politically motivated, which did not go well with Microsoft. On the other hand, NBC News also felt caged by the joint venture since they could not make decisions freely. In essence, this led to the ‘amicable breakup’ (Liedtke 1). It should also be noted that the two companies were looking to compete.

Nonetheless, joint venture was the best possible deal at the beginning for Microsoft since a solo venture would have taken years to build market presence. On the other hand, acquisition of NBC looked would have been expensive if it were possible (Bamford, Ernst and Fubini 1).

Works Cited

Bamford, James, Ernst David, and Fubini David. “Launching World-Class Joint Venture.” Harvard Business Review. 2 (2004): 1. Harvard Business Review Publishing. Web.

Goedhart, Marc, Koller Tim, and Wessels David. The Five Types of Successful Acquisitions. 2010. Web.

LBSR. Making joint Ventures a Strategic Success. 2015. Web.

Liedtke, Michael. “Microsoft, NBC dissolve MSNBC.com joint venture.” Associated Press 2012:1. Print.

Stelter, Brian. “Microsoft and NBC Complete Web Divorce.” New York Times 2012. Web.

Waggoner, Dena. Joint ventures and Strategic Alliances. 2015. Web.

Introduction

Nowadays, modern consumers can access and purchase company products from the online stores or from the physical stores. Despite the presence of the virtual stores, consumers still prefer visiting the physical stores of the companies (Jin and Kim 397). However, the appearance of a physical store often determines its suitability. Microsoft Company possesses numerous physical stores across the United States. One of its renowned physical stores is the Microsoft store situated in Westfield, San Francisco. This store is on the focus concerning its arrangement. Due to such concerns, this essay intends to analyze the strengths, weaknesses, and the pain points of the Microsoft physical store located in Westfield, San Francisco.

Strengths

The Microsoft store located in Westfield, San Francisco, has some strength in its physical planning. Efficient staffing- With the ever-increasing consumer needs within the stores, having a prompt and an efficient staff is necessary (Jin and Kim 399). The San Francisco store has an adequate staff, which is in a systematic arrangement. According to Ghosh, Tripathi, and Kumar (84), customers often admire a stress-free store that has an efficient and a prompt staff that assures buyers of a shopping convenience. Merchandize mix– The San Francisco retail store practices product diversification. The physical store has an assortment of modern tablets, personal computers, laptops, phone accessories, and other valuable electronics.

Efficient billing systems– the kind of a billing system that a retail store uses often influences the decisions of the customer concerning store selection. The San Francisco store has a well-organized billing system that supports visual billing on the products, and a state-of-the-art payment system. According to Ghosh et al. (84), “a customer chooses a store based on parameters like convenience, merchandise mix, and atmospherics.” An informative signage- the layout of the San Francisco store has an appropriate signage for the convenience of the consumers. Such appropriate technological signage with a commercial appeal, eminent through the store markings, writings, and directional marks, makes buyers confident and relaxed.

Weaknesses

Some weaknesses in the arrangement of the Microsoft retail store in San Francisco, explain why its redesigning is necessary. Merchandize display­– According to Pantano and Laria, the method of displaying merchandize can influence the decisions of customers about store selection (197). The San Francisco branch of Microsoft store has an uninviting display of the products as the company has a single layer of a product display. The office layout– The Microsoft store in San Francisco has an open room, with crowded tables and chairs. Pantano and Laria (199) state that this form of a floor layout affects the perceptions of the consumers concerning their roaming freedom and the accessibility of the products.

Confusing shop attendants- The decisions of the consumers concerning store selection depend on the physical appearance of the staff (Jin and Kim 397). The Microsoft branch in San Francisco has workers who wear differently colored clothes. Such appearances make the customer service seem poor, because it scares the shoppers who fear fraudsters, harassment, and public humiliation (Ghosh et al. 84). The lack of immersive systems– Within the San Francisco stores, the layout lacks a digital scenario. The company does not use the 3D real-time simulations such as the HD computerized screens that stimulate the buyers. Pantano and Laria claim that an absence of 3D displays makes consumers lack fascination (197).

Pain Points

Modern physical stores must have some unique appearance in their design to fascinate the consumers and have a better attractiveness than the virtual stores (Jin and Kim 340). The San Francisco physical store of the Microsoft Company seems to have a real-time environment with a proper lighting, coloring, and an attractive architectural design, but lacks a unique appearance. Lack of a 3D innovation– A major problem that makes the store lose its novelty is the severe lack of a 3D immersive system. Pantano and Laria (197) state that unique 3D computer graphics make stores appealing and improve the presentation of the product information.

In the San Francisco store, consumers have to touch the tablets and phones to get the product features. Technological products become valuable when their information appears via technological devices (Pantano and Laria 195). The lack of wall displays– Displaying tablets and phone gadgets on tables placed in the stores has become a common feature in most of the retail shops (Pantano and Laria 195). The company has failed to utilize the space adjacent to the store walls to enhance the secretiveness of the consumers, their confidence, and their shopping pleasure. In addition, the store has a limited entertainment. Lack of entertainment influences the perception of the consumers concerning their waiting time.

Conclusion

Planning of a physical retail store is an imperative issue for most of the modern physical stores. In the modern days, efficient and prompt staff, proper store layout, appropriate lighting, and coloring of the store, merchandize mix, technology integration and an appropriate architectural design, are some of the salient features that a modern physical store must consider. The physical retail store of Microsoft located in the Westfield region of San Francisco has an adequate staff, efficient billing systems, a proper merchandize mix, and an informative signage. However, the San Francisco store looks rather overcrowded, technologically deficient, and with a confusing workforce that dresses on unmatched store attire.

Works Cited

Ghosh, Piyali, Vibhuti Tripathi, and Anil Kumar. “Customer expectations of store Attributes: A study of organized retail outlets in India.” Journal of Retail & Leisure Property 9.1 (2010): 75–87. Print.

Jin, Byoungho, and Jai-Ok Kim. “A typology of Korean discount shoppers: shopping motives, store attributes, and outcomes. “International Journal of Service Industry Management 14.4 (2003): 396-419. Print.

Pantano, Eleonora, and Giuseppe Laria. “Innovation in Retail Process: From Consumers’ Experience to Immersive Store Design.” Journal of Technology Management & Innovation 7.3 (2012): 194-206. Print.

Maren Tool as a Lucrative Market Product in Saudi Arabia

Microsoft Mare is a tool that contributes to Internet communication development in the Arab world. Due to the language barriers, the lucrative market segment presents great potential, since it can be a beneficial finding for both Internet users and the developers of a product.

Saudi Arabia represents the most favorable foundation for Microsoft Maren’s functioning. After the popular uprising that took place in the country in 2011, the central government imposed a number of strict regulations upon the Internet and social media content. Such intensification contributed to the decadence of the online services throughout the country (“Saudi Arabia: Prime Center of Content Blocking” par. 3). The content blocking was sustained with the help of various methods: banning, online filtering, and so on (Hofheinz 6).

Today, when Saudi Arabia embraces a new political direction, Internet freedom is partially extended. According to the modern demographic estimations, the country starts following a new path, and it can turn in a global market dominator with a share of foreign citizens increasing to 35 % in 2030 (“Saudi Arabia in 2030: The Future Demographic” par. 2).

Due to the future globalization of the country, Internet language barriers should be destroyed. Microsoft Maren is a tool that can bring value to the Internet users of Saudi Arabia, for it can open up a number of opportunities for the country to enter the world market. According to Lulu, Microsoft marketing gains extreme popularity in Saudi Arabia since the Maren tool is used by almost every young citizen of the country (par. 1). Therefore, the product creates the way in which the Arab market can become globalized as well as the opportunities for Microsoft development and its successful promotion.

Microsoft in the Arab World

Since the Internet gains crucial importance in the Arab world, Microsoft Maren becomes a revolutionary market product. Still, the tool targets the elites primarily, due to its relative expensiveness and the English-language content (Ghareeb 396). The Arabian experts emphasize the importance of Microsoft Maren for the population but mention that Microsoft still has to undertake numerous challenges: “as an Arabic startup we are flattered to see this happen but do remain to focus on innovating to better serve our users” (“Arab Crunch: Microsoft Launches Maren, a Native Windows Arabic Transliteration” par. 7).

It is a primary challenge for Microsoft today to embrace a new strategy that can potentially enhance the general popularity of Microsoft Maren. First, the Windows Arabic transliteration should be improved through the introduction of clear Arabic instructions, for many citizens have trouble with the usage of the program, due to its English-language guidance. Second, the company has to launch the trial version of Microsoft Maren. The costly program offers few opportunities for the young Arabians to evaluate its advantages. Consequently, a free version of the Maren tool might enhance the general interest of society in this product.

Due to its immeasurable potential, Microsoft Maren can create the so-called cult of the company in the leading Arab countries. The tool that helps to connect these countries to the external world may give a new status to Microsoft. To achieve the goal, the company should take up a strategy of multiple partnerships. For instance, it may be beneficial for Microsoft to cooperate with the major Arab organizations that work for the global market. While the Arab world is striving to become globalized, the company can become one of the most recognized world marketing institutions.

Works Cited

Arab Crunch: Microsoft Launches Maren, a Native Windows Arabic Transliteration 2009. Web.

Hofheinz, Albrecht. “The Internet in the Arab world: Playground for Political Liberalization”, 2005. Web.

Ghareeb, Edmund. “New Media and the Information Revolution in the Arab World: An Assessment.” Middle East Journal 54.3 (2012): 395-418. Print.

Lilu, Bashar. “Microsoft Maren”, 2009. Web.

Saudi Arabia in 2030: The Future Demographic 2015. Web.

Saudi Arabia: Prime Center of Content Blocking 2012. Web.

Introduction: Microsoft Company. Current Strategy and the Related Issues

Known all over the world and used by the majority of the population in literally every state, Microsoft is more than a brand – it has become a business legend. However, when considering the current company policy, one will most likely discover that the company management pursue their own selfish goals instead of working for the benefit of the company. Unless Microsoft changes its strategies and makes the managerial abandon their selfish ways, the company will face the threat of a rapid decay.

Issues with the Company’s Managerial: With Personal Interests Ahead

According to what Goals and governance of the firm says, it is quite understandable, yet rather undesirable: “Is it desirable for managers to act in the selfish interests of their shareholders?” (Goals and governance of the firm, n. d.). Hence, to make people less selfish, the company needs to make them understand that their ambitions are accepted, yet, to gain something, they will also have to make an effort and offer something to the company (Hill & Jones, 2010).

Market capitalization and the current financing

Before going any further, one must mention that the strategy which Microsoft Corporation used to implement before left much to be desired, since it was focused rather on the company’s benefits and, therefore, gave the employees reasons to suspect that they are being used (Goals and governance of the firm, n. d.). In addition, the issue of interoperability must be mentioned; defined as the ability of the company’s products to operate together with the products of other companies, interoperability is not the prior issue at present, yet it can bring the managerial sufficient income, which defines the company’s current policy. As Orcmid (2008) claims, interoperability works “as a self-interest of a dominant producer in our industry” (Orcmid, 2008, para. 1), which means that the company managers are most likely to choose the interoperability method to

Making Managers Stop Pursuing Their Selfish Interests: New Ideas

It seems that the actions which pursue the stakeholders’ interest are harmful for the company. As Benkler explains, “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity—myself, especially—are in a state of shocked disbelief” (Benkler, 2012). Hence, the negative impact of the selfish gene has to be stopped.

Using the “unselfish gene”

Speaking of the way in which the ways of the company’s managerial can be made less selfish, one should consider the principle of the unselfish gene, which Benkler talks about. As Benkler explains, “The widespread conviction about the power of self-interest is based on two long-standing, partly erroneous, and opposing assumptions about getting people to cooperate” (Benkler, 2012). Therefore, pursuing solely the selfish goals is not the human nature either. Once using people’s social instincts and making them feel certain that their interests are going to be taken into account, one will be able to get the Microsoft managerial to stop using their power for their own benefit.

Getting the priorities in line

Judging by the above-mentioned, it is obvious that the Microsoft Corporation must take their management needs and wants into account as well. While Microsoft can continue its policy with boosting the sales, it can offer its managers more opportunities to show their full potential and get rewards for their performance.

Conclusion: New goals, new standards, same people

Hill and Jones stressed the efficiency of the corporate scandals which made the employees set their priorities straight:

In the aftermath of a wave of corporate scandals that hit the corporate world in the early 2000s, there are clear signs that many corporate boards are moving away from merely rubber-stamping top management decisions and are beginning to play a much more active role in corporate governance. (Hill & Jones, 2008, 359)

Therefore, once new goals which align with the needs of the management are set, Microsoft will be able to regain its winning position.

Reference List

Benkler, Y. (2011). The unselfish gene. Web.

Goals and governance of the firm (n. d.). Web.

Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach (4th ed.). Stamford, CN: Cengage Learning.

Orcmid (2008). Interoperability: What’s the self-interest? Web.

Organizational change is one of the turning points in the development of any organization. According to Lewis (2011), “change can serve as means to address many important challenges such as those related to policy, governance, rule of law, philosophy, and distribution of information, rights, and resources” (p. 12). At times, change is necessary for addressing past failures and improving the quality of learning and achievement in an organizational environment (Lewis, 2011).

Even the most successful organizations need to change, in order to sustain their achievements and positive results in the long run. At a glance, Microsoft does not seem to be a good example of organizational change: the company has become so successful that no change is needed. In reality, after the latest reorganization, Microsoft still faces numerous challenges related to customer involvement and employee engagement, which present a serious barrier to innovativeness and creativity in the software market.

Proposing a Change Initiative

As mentioned earlier, Microsoft has recently undergone massive structural reorganization. The initiative was developed and implemented with the goal of enhancing the quality of business performance, productivity, and innovative development results. The change was based on a strong belief that it would enable Microsoft to innovate, create, and promote quality products with greater speed and efficiency (Hanft, 2013). Unfortunately, even the most successful reorganization cannot create favorable opportunities for the subsequent prioritization of customer involvement and employee engagement needs.

Microsoft is an open system, which interacts with the environment and uses environmental feedback as a source of information and guidance in organizational decision making. In the words of Amadoh (2008), the open systems theory can hardly be helpful in achieving and maintaining a reasonable balance of effective consumer involvement and employee engagement. Microsoft needs to change the patterns of its cooperation with customers and employees to ensure that none of the stakeholders feels discriminated or lacks effective involvement in product development.

Stakeholders

Apparently, employees and customers are the two most important groups of stakeholders, who will be affected by the proposed change. As of now, Microsoft has enough opportunities and instruments to maintain two-way communication with customers. Lundkvist and Yakhlef (2004) suggest that conversational models facilitate consumer involvement in idea generation and creative product development. However, not all employees may welcome the inclusion of customers at the earlier stages of product development and design.

Many employees seek empowerment to communicate their ideas and have them translated into products and services. Simultaneously, once an appropriate balance is established, both employees and customers will benefit from it. While employees will see the company’s profits grow due to better products and higher sales, customers will be more likely to stay loyal to Microsoft, as they see their ideas being transformed into convenient and affordable products. The community as a stakeholder will also benefit from the proposed change initiative, as the organization will become more profitable, socially responsible, and sensitive to the needs of customers.

Support and Resistance

Change never goes without resistance. Such resistance can manifest in a variety of forms, but it is one of the greatest barriers to productive change. Distorted perceptions of change and its need, misbalanced expectations of change outcomes, and the poor understanding of the change process greatly contribute to the difficulties encountered by organizations on their way to positive change (Val & Fuentes, 2003). The two stakeholders who are likely to support the proposed change are customers and community representatives.

While customers expect to become more active participants in organizational decision making, community representatives hope that customer involvement will make the company more sensitive and responsive to community needs. Resistance is likely to emerge on the side of employees and managers, who are not willing to give up their current position and power to customers. Such resistance may come from two sources. First, employees may develop a misperception of change as the force, which deprives them of their decision making powers (Val & Fuentes, 2003). Second, because employees at Microsoft receive numerous benefits for their creativity and decision making, they may be poorly motivated to initiate any such change (Val & Fuentes, 2003).

One of the best recommendations to overcome resistance is through effective communication between leaders, customers, and employees. A general meeting devoted to the change initiative could bring all parties together and give them some space for expressing their concerns and asking the most painful questions. Leadership support will play a huge role in how the change initiative is implemented. Both employees and customers must see that leaders at Microsoft are ready to develop and promote the dialogue with all parties and stakeholders.

Conclusion

In conclusion, Microsoft is one of the most successful companies in the global software market. However, even the most successful businesses are not secured from failures. The proposed initiative is aimed to achieve and maintain a reasonable balance of employee engagement and customer involvement in organizational decision making and product development. Microsoft must be ready to deal with and overcome resistance to change.

References

Amagoh, F. (2008). Perspectives on organizational change: Systems and complexity theories. The Innovation Journal: The Public Sector Innovation Journal, 13(3), 1-14.

Hanft, A. (2013). Microsoft’s massive reorganization – All structure, no culture. Web.

Lewis, L.K. (2011). Organizational change: Creating change through strategic communication. Philadelphia, PA: John Wiley & Sons.

Lundkvist, A. & Yakhlef, A. (2004). Customer involvement in new service development: A conversational approach. Managing Service Quality, 14(2), 249-257.

Val, M.P. & Fuentes, C.M. (2003). Resistance to change: A literature review and empirical study. Management Decision, 41(2), 148-155.

Background of the Organization

Microsoft is a multinational computer technology company in the United States with numerous branches across the globe (“Microsoft: Facts about Microsoft” par. 1). The core founders of Microsoft Corp are Paul Allen and the renowned Bill Gates. The company has been growing steadily over the years and currently ranks in topmost in the Forbes group among other multinationals within the United States and worldwide (“Microsoft: Facts about Microsoft” par. 1). The company has its headquarters situated in Redmond, around Washington City.

Revenue

From a latest January 2014 international report of the second quarter of December 2013 released by Microsoft Corporation itself, the company managed to record revenue growth of about $24.52 billion (“Microsoft: Facts about Microsoft” par. 2). Its gross margin stood at $16.24 billion, operating income was at $7.97, and net income at $6.56, and the diluted earnings for each share was at $0.78 (“Microsoft: Facts about Microsoft” par 1). From their report, Steve Ballmer, the Chief executive Officer of Microsoft Corporation, explained that their, commercial market segment has grown and outpaced the overall computer software and hardware productions.

Number of Employees

Microsoft is one of the major employers in the world because of its internationalized operations. The company employs approximately 59,197 employees and technicians within the United States alone and over 100 932 employees worldwide (“Microsoft: Facts about Microsoft” par. 6). Male employees working for Microsoft Corporation in the United States are about 44,826 employees, and female employees are roughly 14,371 in number. Over 10,312 are employees under the age of 29 years, while about 22, 610 are employees of the age bracket of 30-39 and about 26, 275 are employees aged above 40 years (“Microsoft: Facts about Microsoft” par. 4).

Market Capitalization

The Microsoft Multinational Corporation is one of the globally renowned multinationals currently ranking among the top ten best companies across the world. The company has an extensive and big market share that economists categorize it under the mega-capitalization group (“Microsoft: Facts about Microsoft” par. 3). From the initial market capitalization value of $234 billion in 2013, the present report of 2014 about market capitalization indicates that the market value of Microsoft Corporation stands at $314 billion (“Microsoft: Facts about Microsoft” par. 1). Microsoft is a capitalist corporation, and this has enabled the company to be among the eight largest multinationals across the world.

Product Line

Microsoft Corporation is a computer technology multinational company that deals with a variety of computer software and hardware systems and related applications and technologies (“Microsoft: Facts about Microsoft” par. 3). The company manufactures, develops, and designs software-licensing programs, sells computer hardware and software, offers computer services and other consumer electronics associated with the computer technology (“Microsoft: Facts about Microsoft” par. 2). Microsoft produces Windows operating system, Microsoft Office software, mobile phone operating systems such as Windows 8 and 7 for Nokia phones, and other online applications, networking services, and hardware devices.

The E-Commerce-customer Perspective

Electronic commerce also commonly known as e-commerce is a modern business strategy where purchasing and selling of products happen through electronic systems, including the Internet and computer networks (“Microsoft: Facts about Microsoft” par. 5). Microsoft rarely carries out online marketing or online selling because consumers normally rely on reliable intermediaries, which access Microsoft products. Customers also disregard its online services, including its help centers that offer little support. In a five-point scale, scores two out of five in the utilization of e-commerce.

The e-Commerce-organization Perspective

In their strategic planning, Microsoft claims to employ modern technologies in producing and marketing of its products across the globe. Their general website name is Microsoft.com or sometimes Microsoft Corporation, but their full range of products does not appear on the websites (“Microsoft: Facts about Microsoft” par. 2). Their websites have concentrated on marketing a few products that seem to have a low market reputation and demand. Windows 7 and 8 are the major operating systems that regularly appear on their website. Marketing nowadays relies on e-commerce and technological.

Work Cited

Microsoft: Facts about Microsoft 2014. Web.