Introduction

Microsoft Corporation is an American software Corporation headquartered

in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of
products and services related to computing. The founder of this company is Bill Gates and Paul
Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenue.
(Michel van Kooten, 2011)
On June 18, 2012, Microsoft announced the Microsoft Surface, the first computer in the
company's history to have its hardware made by Microsoft. To deal with the potential for an
increase in demand for products and services, Microsoft opened a number of "holiday stores"
across the U.S. to balance the increasing number of "bricks-and-mortar" Microsoft Stores that
opened in 2012.

From the bar chart, it is shown that Google is the dominant of tablet from 2012-2013. The main
competitors of the company are Apple and Samsung.
Microsoft's mission has been to create software for the personal computer that empower
and enriches people in the workplace, at school and at home. As the world's leading software
provider, Microsoft strives to produce innovative products that meet customers' evolving
needs. Micrsoft is well known for its software product, yet recently the company makes change
to the company by introducing Miccrosoft Surface Tablet. The users of Microsoft surface is
people from the age of 18-49 years old. Currently the users who uses Microsoft surface is
business people because of technology and apps that are been produced in Microsoft surface.
1

Section B : Application
1.
From chapter 11,Terrain. Know the weather, know the terrain,your victories will be limitless.
( lines10.54-line10.55)
Microsoft cooperation applies this Sun Zis philosophy in producing Microsoft
surface(tablet).This can be seen when the company sees the current trend in market today where
more than any other product, it's tablets that are replacing PCs that run Windows. It is
significance because Tablets are among the most important developments in computing and
consumer products in the last 20 years. Like Google's Android Tablets, the Windows Tablets will
be made by many different manufacturers. And just like Googles Nexus, which provides
reference designs for the Android product line, Microsoft is producing its own Surface Tablets
for the Windows product line. (Dr. Raymond M. Soneira, 2012). The new Windows Tablets, led
by Microsofts Surface, provide a third major family of Tablets for consumers and the computing
world. Initially Microsoft plans to market two versions of Surface. The first will be based on an
Nvidia Tegra processor and run Windows RT. The customers may have more than one choice to
decide which will suit them most. Thus, Surface Tablet is launched in different processors and
features.
When Microsoft set the price of tablet, they observe the marketing price in order to gain
profit. Apple traditionally charges $129 more for an iPad with 3G, so its likely Microsoft would
target about the same price difference. If the Windows RT version of Surface is truly priced to be
competitive with consumer tablets, the price of Windows RT licensing fees will make it
impossible for OEMs to compete effectively. There will undoubtedly be less-expensive Windows
RT devices on the market, but they will be clearly inferior to the Surface tablet.
2.
In chapter five, Sun Zi explained the use of creativity of combining timing in building your
momentum can create such an overpowering and precise force.
Microsoft came up with the operating system Windows 8 about a year ago and then finally a
gadget to complement the newly updated program. Windows 8 was released for manufacturing
on August 1, 2012 and was then released for general availability on October 2012. The gadget
being referred to is none other than the well-known Microsoft Surface. Microsoft Surface has
two products namely Surface RT and Surface Pro. Among the specs of Microsoft 8 are such that
users have the extra edge to change the size of splitscreen view. By that way, users will be
2

happier to use the program as they can have the view of their tablet display in whatever size
preferred. As can be seen, Microsoft Corporation is using Windows 8 as a platform to support
their latest product, Microsoft Surface. Windows 8 has many advantages. One of those perks is
that Windows Explorer which is being renamed File Explorer. File Explorer contains a new
ribbon located in the command bar. Dialog boxes have been updated to provide extra detailed
statistics, the ability to pause transfer of files and to reduce problems when copying files from
one folder to another folder. Only after Windows 8 came up, Microsoft Corporation launched the
tablet. The tablet consists of PC, display, rechargeable power source, a mechanically attached
keyboard and pointing device. They had prepared a platform for Microsoft Surface to be
launched. Microsoft Surface cannot function without a compatible operating system. Windows
8.1 would be a good operating system for the tablet. The functionality of Windows 8.1 worked
very well with the making of the tablets. Lee, 2013, reported in the Star2 section of The Star
newspaper that Sunny Ooi, Microsoft Malaysia consumer channels group director said Up until
August, 66.7% of new devices shipped locally was powered by Windows 8 and the numbers are
growing healthily.
3.
In chapter 4 under business application states that entrench the product so as to resist all
attacks; view the market from a high level, rapidly moving into new market opportunities as you
see them and horizontal growth expanding products into other geographic locations and/or
increasing the range of products and services it offer to current markets
Microsoft Corporation is well known as the worlds largest software maker measured by
revenues. It produces a wide range of other software for desktops and servers. Microsoft
Windows and Microsoft office are examples of very useful, popular software created by
Microsoft. Microsoft rose to dominate the personal computer operating since mid-1980s. As of
2013, it is the market dominant in both the PC operating system and office suite markets.
Although Microsoft received a big success in software industry, it does not just stay still
in that market. The company understands that in order to become unbeatable and to resist to all
attacks, it has to make itself become stronger by expanding or increasing the range of products
and services it offers to current market. Due to this, Microsoft always seeks for new market
opportunities and rapidly gets involves in those industries as it see them. Since 1990s Microsoft
3

has increasingly diversified from operating system market and has made a number of corporate
acquisitions like computer software- forethought (1987), electronic games- Electric Gravity
(1996),

online

music

search

engine-MongoMusic

(2000),

telecommunications-Skype

technologies (2011) and the most recent mobile phones industry- Nokia (2013). Besides,
Microsoft does actively involved itself in other industries like internet search (with Bing), the
video game industry (with the Xbox and Xbox 360 consoles, and Xbox One console), the digit
service market (through MSN and outlook), mobile phones (via the Windows Phone OS) and Pc
vendor market (via Microsoft surface tablet computer). By doing this Microsoft will not only be
able to protect itself from attacking by others, at the same time gains the market share,
4.
In Chapter 3: Strategic Attack, under five ways to predicts victory of a General, Sunzi mentioned
The general must unite his soldiers and officers ( 3.47) which relates to the importance of
leadership.
Microsoft's soon-to-retire chief executive officer (CEO), Steve Ballmer had been carrying
out his job as a great CEO throughout the 13 years (2000-2013). According to Microsoft website,
under his leadership, Microsoft has more than tripled revenue and doubled profits since 2000.
Sunzi also said: The general must have strong sense of timing (Line 3.45) and The
general must be proactive all the time so as to seize opportunities (3.48)
As a CEO of a company, Ballmer work hard to maintain the stability of the company and
bring improvements to the company by observing the trends of market, analyzing the strength of
company. Since 2007, Microsoft launched Windows Vista and later upgraded to Windows 7
until today with Windows 8. CEO of the Microsoft knew that the operating system might get
outdated thus they launched new version of it about every 2 years. The same concept was applied
to enterprise tool like Microsoft Office. Besides that, seeing the importance of mobility, Steve
Ballmer did a right choice by making cloud services become one of the strength of company.
Microsoft excels at combining several kinds of cloud software and programs stored on a
customers own servers. When he saw the opportunity in tablet and smartphone market, he once
again get his team together and launched window surface RT and also window phones to
compete in the market. Ballmer shows the leaders challenge is to adapt to the different markets.
4

Apart from that, Steve Ballmer showed one of the positive traits in leadership where he
had courage to admit his failure, taking responsibility for the mistake. According to BBC News
(2013), he regrets the company didn't get into the smartphone and tablet business sooner which
now the market is currently dominated by Apple and Google's Android operating system.
Microsoft Corporation with good financial support had missed out the chance to generate more
revenue when they fail to become the very first to stand in the market.

Section C: SWOT Analysis

Strengths:
(S1) The Microsoft Corporation has a good reputation because of their Windows and
Office software since 1975 as well as the founder of Microsoft, Bill Gates is a well-know
philanthropist. This results many of his admirer will show loyalty to his corporation's product.
Its product included PowerPoint, Word, Excel and so on for Microsoft Office whereas for
Microsoft Windows, the latest product is the Windows 8. Public will analyze that its tablet will
be good too.
(S2) Besides, Microsoft Corporation has a strong, robust and stable financial performance
for years. According to its financial report ended June 30, 2013, quarterly revenue of $19.9
(RM63.9) billion was made. The corporation's investors' confidence became strengthen and they
will provide more capital on this business. In this case, Microsoft Corporation has a strong
financial support to focus on their development of new products.
(S3) Based on the news center of Microsofts official website, Microsoft Corporation will
purchase over all of the Nokias Device and Services business, expected in early 2014. Nokia is a
well-know company to produce mobile phone before Samsung and Apple. This transaction has a
purpose of increasing Microsofts share and profit. In February 2011, they have a partnership and
produce Nokias Lumia smartphone which running Microsoft software and it was a success
device that attracted many customer.
(S4) Apart from this, as smartphone and tablet are getting more essentials, the Microsoft
Surface tablet fulfills the needs of the public. Nowadays many people own a tablet instead of a
laptop. According to a survey conducted by International Data Corporation(IDC) in April, 8.7%
of respondents would like to replace their laptop with tablet. At the same time, 58.5% of
respondents in the survey will prefer to bought a new tablet, and not as a replacement. Tablets'
size and weight will definitely lower than a laptop. In addition, the battery of tablets can run
longer than a laptops' battery due to the battery component of the laptop is far smaller percentage
of the laptops internal components.
(S5) There are numerous corporations such as Apple and Android produced tablets at the
same time, with this reason, the advanced processor and graphic design, new look as well as
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unique accessories of the Microsoft Surface tablet attracted attention of the public. The Touch
and Type Cover is a new accessories that user can choose to dismantled it or used it as a cover to
protect their Microsoft Surface tablet. The attached VaporMg casing is also a unique design that
couldn't be seen from other tablets such as iPad and Samsung Galaxy Tab. It could support the
tablet up just the same like when using a laptop With all of these new technologies, however, the
price of the tablet is still affordable than purchasing a new laptop.
(S6) Microsoft Surface tablet has superiority that it could use PowerPoint, Word, Excel
and so on, which are useful tools for many aspects.As these software belong to Microsoft
company, it affects the intention of buyers because others tablet such as iPad and Samsung Tab
did not provide it.
Weaknesses:
(W1) Weak management Confuse the potential customers. Window cannot provide clear
information regard their tablet. During the release of Surface RT last year, Microsoft failed to
explain and clarify the difference between Windows 8 and Windows RT to potential customers
.This really caused a lot of confusion among the customers. Not only that on November 14,
2012, Microsoft was sued for false advertising and unfair business practices. This is because
surface tablet does not have all the storage space the company advertised. Half of the total
storage space on its 32 GB Surface RT tablet was used by the operating system and pre-installed
apps. Although it is common for mobile devices to have less usable storage space than advertised
but this lawsuit incident more or less will affect the companys reputation.
(W2) Apps Dilemma in Windows Store. We cannot install any desktop programs on the
tablet. Instead, we will have to download it as apps through the apps store which known as
Windows Store for Windows Surface users. The larger the number of apps, the more likely it is
that there will be application for niche users.This will give a huge user base for those who has
large number of apps. Since Windows is still quite new in tablet industry, Windows Store does
not have many apps compare to Apple and Google Android store .As of mid-December 2012, the
Windows Store had roughly 14,280 available apps which far lower than the Apple store with
more than 275,000 apps available..But unfortunately, there is still a long way off ios and android.
(W3) Product defect harm Windowss reputation.There are issues with the Touch Cover
of the Microsoft Surface. The Touch Cover is to works as stand, screen protector and
7

keyboard .After this product has been launched, there were already some customers complained
that the Touch Cover was suffering from defect where it split at a seam. Microsoft has
immediately taken action by replacing it with a new one. Although it was just a small matter but
it still might affect the Microsofts reputation and the customers confidence on Windows
product. Customers might doubt about their manufacturing line and they will think twice before
make decision to purchase it.
(W4) Unreasonable Price The selling price of Windows Surface is considered high.The
normal sales price for a tablet is between $200 and $300 .However, Windows has sold the basic
Surface RT with 32GB for $449. While that is double the storage of Apples similarly priced
basic iPad. Furthermore, no tablet maker yet has been able to sell in high volumes at this high
price. It might stop those potential customers who are still students. They are hardly to afford
such a high price.
(W5) Advertising of Microsoft Surface is not effective. Microsoft Surface considered as
new product in tablet market, till now some customers still do not take note about it. Customers
may more prefer to purchase other well-known tablets like Ipad or Samsung Tab. Thus,
Microsoft Surface has to be more creative in delivering, introducing and promoting the product.
That is, through advertise Microsoft Surface creatively so that it helps to grab public attention.
Unfortunately, consumers are hardly to access or exposed to these advertisement neither through
internet or shop. Most of the pop-up advertisements that we saw while surfing internet were
about Samsung tab or apple Ipad .Moreover there are less Microsoft Surface centre and
Microsoft Surface tablet seldom become the main product to be promote in IT centre.
Opportunities:
All organizations have some external opportunities that they can pursue. Identifying profitable
opportunities that match the capabilities of a firm is the mark of astute management.
(O1) Strong growth in tablets market. There is a rapid increase in demand for tablets thus
its markets grew steadily over years and Microsoft could use this opportunity by introducing
more of its own tablets. Meanwhile, the vast improvement in wireless broadband in Malaysia has
increased the number of hotspots available, which contributed to the increasing demand for
tablets. People now prefer using tablets or smartphone more than desktops or laptops because the
high-tech device which is portable is convenient for all users.
8

(O2) The buying behavior of the new generation. Customers tend to replace the outdated
tablets over the time. With the introduction of Microsoft Surface Tablet which runs Window 8, it
will be another choice for customers. Many of the younger generation around 20-30 years old
who had worked and can afford more than one technology devices, they will prefer to own a
tablet even though they had owned a smartphone earlier. This can be related to the intense of
showing off mindset among the young generation. Furthermore, customers are affordable to own
a tablet as the economic in Malaysia is in stable phase.
(O3) Microsoft Corporation is a big company with sufficient manpower. Manpower is
proportional to productivity. People will opt to work in the company as the reputation is solid,
thus companys project can be carry out efficiently, especially in long term progress. When the
level of manpower in a company is adequate, the business has more options in how it operates.
Additionally, the company has more employees who can give their own ideas and perspectives.
Microsoft is widely recognized as a leading company for offering one of the strongest and most
comprehensive compensation and benefits packages such as competitive pay, bonuses based on
individual performance. This will encourage more people to work for the company.
(O4) Microsoft has an opportunity to enter the tablet market with a device able to use the
Microsoft Office suite of software compare to competitors. Nowadays most of the countries are
practicing paperless office and e-learning which is more convenient and eco-friendly. Both
practices need documentation software, and the Microsoft Office is always the best option with
Microsoft Window operating system. Other tablets are unable to run the software as their
operating system are different, however Surface tablet with Window 8 operating system is able to
do so. If Microsoft can bring innovation and changes in its future tablets, then there is no reason
why Microsoft can't get on top of the tablet and computing industry. With its cloud service as
well, many big company will sign contract with Microsoft in long term period.
9

Thread:
(T1) As the world is getting more globalised everyday and technologies are improving
day by day, seeing the rise of applications such as Google Android, Apple and Samsung is no
longer a surprise, This will definitely cause a stiff competition between Microsoft Corporation
and these companies which coincidently produce high-tech products, including tablets.
Consumers will tend to pick and choose between the many brands available. Due to the highly
varied options of tablets of different companies available, the possibility of Microsoft
Corporations profit dropping is rather high.
(T2) Microsoft Corporations dependence on specific suppliers is another threat.
According to a report in July 2012, Microsofts second-tier partner could not manufacture the
case in a fast manner. The tablets magnesium chassis could not be produced in time by the
manufacturer. Seeing that the problem has occurred over a year ago, the same thing has an equal
probability to occur again. Resources might be depleting in the near future. The supplier may not
be able to withstand the pressure of producing certain elements such as the chassis and the case
of the tablet at a rapid pace as Microsoft is a company with well-known reputation.
(T3) Information Technology (IT) is developing very quickly, thus Microsoft has to be
able to keep up with the fast pace. In the 1990s, there was no such technologies like touchscreen and tablets. Only large-sized monitors and personal computers (PC) were available at that
time. Moving on to the late 2000s, tablets were well-known. A huge development has taken
place. In ten years from now, a new technology might emerge and tablets might be even outdated! The world is getting more advanced each and every day. The economy crisis which
occurred in 1997 is not forgettable.
(T4) This shows that the world is prone to economy downturn. When economy crisis
happens, inflation rate increases. Value of money decreases and prices of products increases.
People would tend to avoid spending their money on gadgets like tablets but would rather spend
on their daily needs such as food and transportation. Things will worsen when they have bigger
families as more mouths are to be fed. Certain companies would terminate their employees and
the number of jobless people will increase. At that time, people would not have the financial
capacity to purchase costly items like tablets.

10

Section D: Findings & Recommendation

Strategy 1:
(S1) Microsoft Corporation has a good reputation because of their Windows and Office software
since 1975 as well as the founder of Microsoft; Bill Gates is a well known philanthropist.
(W5) Advertising of Microsoft Surface is not effective.
(O4) Microsoft has an opportunity to enter the tablet market with the device able to use the
Microsoft Office suite of software compare to competitors.
(T1) As the world getting more globalised and technologies are improving day by day, seeing the
rise of application such as Google Android, Apple and Samsung is no longer a surprise.
Based on the SWOT analysis above, the best strategy that we suggested for Microsoft
Corporation to improve their business is using Diplomatic Approach. This strategy is discussed
under Chapter 3: Strategic Attacks. There are 4 stages of strategic attacks which are to win by
strategizing, to disrupt the strategic alliances, to go after the enemy directly and to go all-out
assault against walled cities.
In diplomatic approach, it is stated that the best victories are those that can be won
without conflict or with minimal conflict. In the other way round, it is the best for the company
to win without fighting. The best way is to make opponents into allies, Strategic alliances not
only enhance companys market position, it also increase market share and improve companys
product or services.
Considering the first stages of strategic attacks: to win by strategizing. Microsoft
Corporation should know the strengths of their enemy and know the strength of them because the
ability to subdue the enemy without any battle is the ultimate reflection of the most supreme
strategy. For example, Microsoft Corporation needs to put more effort in advertising their
product as other company such as Asus, Apple and Samsung. The advertisement and the shops of
their product can be found easily in shopping complexes, whereas it is comparable more difficult
to find the stall or shop for Microsoft. They can introduce their most special strengths which is
their device able to use the Microsoft Office suite of software compare to competitors.

The

company should fully utilize their good reputation in the eyes of consumer and seize the chance
11

to launch their product so that it is remarkable for consumer. It is very very important for the
company to use their advantages of size to compete with other similar size of company.
With the strength of Microsoft Surface, I believe that the sales can be double if there are
more people get to know about it. Therefore, our suggestion for Microsoft Corporation is they
have good reputation and have particular strength which is the Microsoft surface tablet able to
use the Microsoft Office suite of software compare to competitors. The only thing they need to
do to improve their sales is put more strategic in advertising their product to compete with other
company.
Strategy 2:
(S2) Microsoft Corporation has strong, robust and stable financial performances for years.
(W3) There are issues with the Touch Cover of the Microsoft Surface which harm Windows
reputation.
(O3) Microsoft Corporation is a big company with sufficient manpower.
(T2) Microsoft Corporation dependence on specific suppliers to manufacture cases and
magnesium chassis.
Based on the SWOT analysis above, it is recommended that Microsoft Corporation
ensure that they are invincible in defence. The invulnerability to attack by enemy will greatly
enhance if a strong defence force is in place because no enemy will dare contemplate taking on
such strong defence. Hence, by ensuring that one is not vulnerable, it is then possible to look for
opportunities to defeat the enemy.
Microsoft Corporation has strong, robust and stable financial performances for years.
They have the capability of doing extraordinary things such as picking more enemies who are
easily conquered or extremely vulnerable. According to Sun Zi, very careful in planning, only
adopts measures and strategies that ensure victory. In other words, Microsoft Corporation needs
to plan wisely in their strategies. It is a good sign for Microsoft Corporation to take over
company such as Nokia, Skype and etc. If they want to be the dominance of the market, the need
to take more approach to increase the size of their company so that it is difficult for other
company to attack them.
12

Moreover, recognizing their own weaknesses, Microsoft Corporation can also take over
their suppliers company and be their own supplier since they have stable financial performance.
Through this, they need not to depend on other company to manufacture cases and magnesium
chassis. Besides, it is a big company and has sufficient manpower. Thus, the efficiency and the
quality of their product and their production line must be proportional to it. Microsoft
Corporation is a big company where they must employ workers which have certain qualification
to make sure the production line is being well supervised to avoid issues such as Touch Cover of
the Microsoft Surface which will harm Windows reputation to happen in future. Again,
according to Sun Zi, those who were skillful in warfare ensure they would not be defeated and
then waited for opportunities to defeat the enemy.
I believe that Microsoft Corporation will be the market leader if provided with they fully
utilize their abundant capital to recognize opportunities and they can defeat their enemy if they
are skillful in exploiting any momentum created as the result of their skill in deploying his force.
Strategy 3:
(S4) Smartphone and tablet are getting more essential, the Microsoft Surface tablet fulfills the
needs of the public.
(W4) The selling price of Windows Surface tablets is considered high in the market.

(O1) The rapid increase for demand causes a strong growth in tablets market.
(T3) Information Technology (IT) is developing very quickly, thus Microsoft has to be able to
keep up with the fast pace.
Based on the SWOT analysis above, Microsoft Corporation should launch more choices
of product in the right timing and momentum. Besides, creative thinking is very important in the
market as there are many other company produce electronic devices and software. This strategy
comes from Chapter 5: Forces.
The right timing can decide the popularity of one product after understanding the
environment, nature of competition, characteristics of target audience as well as strengths and
weakness of company and competitors. In IT world, Microsoft software is a well-know computer
device and it helped the corporation to win initial success. As the launching of Microsoft Surface
13

tablet to gain more attraction from tablet buyer, they will have the desire to look at other
Microsofts device such as GPS or more advance software and apps.
Besides, momentum is also an important aspect in order to become successful in market.
Once Microsoft Surface tablet establishes foothold and accepted in market, corporation should
expand it as quickly as possible. Due to many people relies on mobile electronic device,
Microsoft Corporation can produce more and more products and variety of choices of tablet, for
example tablets from low price to high price or different size, thickness, colour, weight and so
on. Since Microsoft Surface tablet is getting more familiar in IT market, we recommend that
Microsoft Corporation to take this chances to expand its business before this trend fades away.
In addition, Sun Zi emphasized a lot on creativity and innovative use and interplay of the
direct and indirect approach, strategy and force in order to create winning strategies. In this case,
we strongly recommend that Microsoft Corporation to invent and create more and more
applicable, interesting or educational apps in their apps store, Windows store. As many buyers
were attracted by Apple and Samsung, they should put more effort on creating apps which is
unavailable in iOS and Android which are their competitors in the market. Therefore, creativity
and innovative are needed for designer in order to get more attention from buyer.

14

Conclusion

In conclusion, we had learned how to apply the internal analysis (strengths and
weaknesses) and the external analysis (opportunities and threads) to a company besides
indentifying the company competitors, market dominance and business trend of a company. We
can see the importance of using SWOT analysis to a company or its product. The analysis will
concentrate on the most important factors which affect your business. Thus you can understand
your business better by taking advantage on the strength, capitalize on opportunities, aware of
the threat, and improve from the weaknesses. Besides, SWOT helps a company to develop
business goals and strategies for achieving them.
For the most important aspect, we learned how the company applies the Sun Zis
philosophies and strategies in their business. We had to do research to provide facts that proved
the company was applying those business principles such as leadership, right timing, adapting
according to situation and knows your enemies well. The research is really helpful as it made us
to really understand the theory and applied it in business strategies. We appreciated the
opportunity given that we are able to refine the understandings towards the subject Sun Zi Art of
War and Business Strategy throughout the assignment.
Apart from that, throughout the process of completing the assignment, we are being
exposed to teamwork. We had discussions, and divide the work equally among the group
members and helping each other in the assignment. As the saying goes many hands make light
work , we gathered the ideas from all the member during discussion and each member cooperated well while doing the assignment, eventually we completed the assignment in the given
time. In fact, teamwork is extremely important when we step into the society to work for a
company, working together is always better than working alone. Whenever we have conflicts
with each other, we voiced out and tried hard to solve the problem together. We learn how to
communicate in a better way while accomplishing the group assignment.
Lastly, we would like to thank our lecturer for guiding us while doing the assignment.

15

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