Annexure-V- Cover Page for Academic Tasks

Course Code: MKT503 Course Title: Marketing Management

Course Instructor: Rajeev Gupta

Academic Task No.: 1 Academic Task Title:

Date of Allotment: Date of submission: 02/09/2019

Student’s Roll no: 8 Student’s Reg. no: 11900998

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by
students as specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student‟s
work or from any other source except where due acknowledgement is made explicitly in the text, nor
has any part been written for me by any other person.

Student’s
Signature:

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:

Marks Obtained: _____________________

Max. Marks: _
 INDEX

1) Introduction to the company______________________________01

2) Past Analysis of the company______________________________04

3) Analysis of the current situation of the company_______________06

4) Comparison with the competitor____________________________07

 INTRODUCTION

Microsoft is a American based global technology company. Company’s headquarters is

situated in Richmond, Washington. Microsoft was founded by Bill Gates and Paul Allen on
April 4,1975 to develop and sell BASIC interpreters for the Altair 8800. With MS-DOS in
the mid-1980s it was raised to dominate the personal computer operating system market ,
followed by Microsoft Windows.

Since the 1990s,it has increasingly diversified from operating system market and has made a
number of corporate acquisitions and merges with many companies.

Some companies which are acquired by Microsoft are:

• Skype (2011)
• Fast Search & Transfer (2008)
• Nokia's mobile and devices division (2013)
• LinkedIn (2016)

Microsoft company mission is ‘to empower every person and every organization on the
planet to achieve more’. Microsoft employs more than 130,000 people internationally. During
the fiscal year 2018 Microsoft Corporation generated USD 110.4 billion in revenue and USD
35.1 billion in operating income.

Microsoft produces a wide range of products and services related to productivity and
business processes and to support digital work of customers. Some of its products and
services have become highly popular in the global scale. For example, more than 135 million
people use Microsoft Office and Outlook Mobile is installed into more than 100 million iOS
and Android devices worldwide. Similarly, Microsoft Teams is used by more than 300
organizations worldwide, including 87 of the Fortune 100 and nowadays there are nearly 700
million devices around the world with active Windows 10.

PAST ANALYSIS OF THE COMPANY

Microsoft company contains the application of the major analytical strategies in the business
studies such as SWOT and PESTEL.

Strengths :

• Leading Software Company : Microsoft is the undisputed global market leader in

software technology specifically in cloud computing. It’s the world’s largest
developer of Windows OS and the leading cloud player.
• World’s largest Company with dominant market share : Microsoft ranks
fourth with a market value of $750.6 billion in the world’s largest companies in 2018.
• Vast market reach : Microsoft operates in more than 190 countries worldwide. After
launching the promoted version of Windows 10, it has over seven hundred million
dollars installs worldwide.
• Constant growth : The latest earning results of Microsoft clearly demonstrate its
strong growth in the cloud business. According to the analysts, Microsoft will be 1
trillion dollars in the near future.
• Easy to use software : Microsoft is known for its hi-tech and quality products
offerings. Windows OS and Office software products are quite user-friendly with
highest quality standards.

Weaknesses :

• Overexposure to the PC market : PC shipments are often subjected to frequent falls

due to vendors’ rising prices and currency fluctuations.
• Cybercrime theft : The increasing cybercrime cases have left Microsoft in a
vulnerable state. Hackers have reportedly attacked the cyber security of the Windows
Operating System several times.
• Lacking innovation : Microsoft has been failing to grow its hardware products sales
such as surface pro computers and phones. It has been lagging in innovation and
advanced technology, whereas apple, Google, and Amazon are quickly blazing trails.
• Unsuccessful acquisitions : Microsoft’s fewer acquisitions like WebTV, Link
Exchange, Massive, and Danger resulted in failures and divestitures. Such
unprofitable investments are the biggest weaknesses of Microsoft.

Opportunities :

• Cloud business growth : Its cloud-based services have gained immense growth and
success in recent years. Thus, there’s an opportunity for Microsoft to expand its cloud
business.
 • Innovation and Artificial Intelligence : Microsoft has a massive opportunity in
many innovative areas like AI and game technology. Investing in these areas can give
an upper hand to Microsoft.
• Partnerships and Acquisitions : Microsoft can focus on entering into new strategic
alliances and partnerships. It will enable the company to gain high market share.
Acquiring major hi-tech firms will also be a profitable opportunity for Microsoft.
• Smartphone industry : The fast-growing market of smartphones and tablets offer an
excellent opportunity for Microsoft. It can capitalize on the rising demands of these
products.

Threats :

• Workforce’s related criticisms :In Microsoft company the number of women and
minorities working was quite low, fuelling severe criticism and arguments against the
company’s HR policy.
• Gay reference controversy : Microsoft has faced many criticisms for its XBOX
LIVE game service because of homosexuality and gays can’t be used in the
Gamertag and user’s profile, as the company considers this matter ‘unsuitable’ and
‘offensive’ for other users.
• Aggressive competition : Microsoft is in intense competition with Google and Apple.
These companies established positions can be a threat to Microsoft market position.
• Open source projects : Like Linux OS and Open Source Office, many new open
source projects have successfully entered into the market offering similar services for
free. It can threaten Microsoft that offers these products at an expensive rates.
• Cybercrime and piracy – Increasing cybercrime thefts and software piracy issues
have mostly affected Microsoft’s security network system.

Microsoft Corporation’s managers include PESTEL analysis

Political :

These is a political stability in Microsoft company which will create worldwide

opportunities and increase its investments and corresponding performance. For
example,the company can improve its sales and marketing investments in Europe to
achieve a corresponding increase in revenues.

Economical :

Microsoft benefits from the considerable economic stability of the majority of

developed countries. For example, the company can expect stable performance in
these markets. Microsoft also has potential boosts in sales revenues in high-growth
developing countries. This opportunity translates to steady growth in Microsoft’s
global sales.
Social :

The stable attitudes about leisure present opportunities for Microsoft to develop
products that can satisfy customers’ leisure preferences. For example, the company
can increase its investment in innovating computer gaming products for this purpose.

Technology :

Microsoft Corporation can improve its performance through rapid innovation of its
mobile devices. This opportunity is based on the rapid adoption of and rising demand
for mobile technology. However, this technological external factor is also a threat that
facilitates competition against Microsoft.

Environmental :

Based on the increasing preference for green products, Microsoft Corporation has the
opportunity to enhance its sustainability standing. For example, the company can
develop more environmentally friendly products, and increase the use of green energy
in its business operations.

Legal :

Increasing electronic waste disposal regulations are an opportunity for Microsoft

Corporation to implement more effective recycling and disposal programs that
improve brand image. However, this legal external factor is also a threat that could
impose additional challenges for the company in addressing the environmental impact
of its business.

ANALYSIS OF CURRENT SITUATION USING MARKETING STRATEGIES :

“Marketing is the management process responsible for identifying, anticipating and

satisfying customer requirements profitably”.

A marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable advantage.

Microsoft uses both the demographic and behavioural segmentation strategies to

segment the market in groups with similar characteristics. demographic is used for
products and behavioural is used for products like Microsoft windows server
operating system. It has presence in large number of hardware and software
businesses ranging from operating systems to mobile manufacturing and selling.

Due to having a wide product and service portfolio Microsoft uses mix of
differentiated targeting strategy. In office and Windows or overall in operating
systems, the population is homogenous and the target is the complete world which has
access to computers. However, in mobiles and developer tools Microsoft needs to
 have a differentiated target as these products have a lot of competition and the market
is divided based on the features offered.

From rebranding its products & services to logos; company underwent a turnaround
recently to reposition itself as a value based company mean to enrich the life of the
individuals worldwide. If we talk about the positioning of Microsoft, then its operating
systems and several software are simply top of the mind positioned in the market.
Because of the brand value of Microsoft, any product it launches gets a good
positioning. But in some cases, it might not be the top of the mind positioning.
Example – Microsoft mobiles phones vs Samsung or Apple in the smart phone market

Competitive advantage in the Marketing strategy of Microsoft :

Microsoft is in the business of large number of products and services which gives its
competition over other companies in the world. It has offerings in Microsoft tablet to Xbox
console games to software. Being in meta-market industry is helping the company in using
shared capabilities to excel in its functional businesses.

One of the most important competitive advantages that Microsoft has over its competitors is
its acquisition strategy. Microsoft have acquired some of the best companies in the world
like Hotmail, skype, Nokia, Visio corporation, Navision and many other small and big
companies.

Generally, Apple is considered as the main competitor of Microsoft interms of interface,

design, hardware components, software availability, security and prices.
Graphical User Interface :

Windows' trademark design is its Start menu, the globe with the Windows logo where all
files, folders, and applications can be found. Mac OS has finder, very much like Windows
Explorer, and the Dock, a small strip of application icons at the bottom of the screen for easy
access to your most-used programs, similar to the taskbar on the Windows desktop. This is
mostly a cosmetic difference: two ways of accessing your files and applications. Windows
also keeps its Start bar at the bottom (you can move it to the top or either side) while Apple
has its menu bar at the top. The placement of the close, minimize, and maximize buttons are
also reversed: Windows has its buttons on the top right while Mac OS has its buttons on the
top left.
Software Availability :

Windows has claim to much more software because it is more widely used than the Mac OS.
Many software companies simply don't have the resources to develop for two different
systems, so they choose the one with the most users. Many software companies do create
versions of their products for the Mac OS, and other vendors create lookalike versions for the
Mac, but the programs aren't always as functional or stable as their Windows counterparts.
Design :

Apple computer parts are all built by and for a single manufacturer: Apple. Conversely, a
Windows PC may use hardware from a dozen different manufacturers. Because of this, Macs
tend to run a bit more smoothly since all the hardware components were made to work with
each other and with nothing else. However, this also means that if a Windows computer
needs a replacement part, it can be found from a variety of sources; if your Mac needs repair,
you will typically need an Apple part (unless it is something like a hard drive or RAM).
Hardware and Replacements :

Apple computers are rather resilient to change; on MacBooks especially, the case design
leaves little room for opening up your computer and changing parts. Windows computers are
more accessible, and hardware can be swapped out more easily. People who build their own
computers prefer using Windows due to the simplicity of upgrading individual parts instead
of buying a new computer. If this isn't a necessity, the simplicity of buying a custom-
designed Mac from Apple's online store is a plus.
Security :
windows' popularity also harms it. Because Windows is more widely used, people who create
viruses will often skip making them for Mac, choosing the broader Windows audience. Mac
OS isn't necessarily more secure -- in fact, one security expert declared that Windows 7 was
more secure than Mac OS X -- just less popular. When it comes down to which system is
more secure, that tends to change depending on which version of each OS is out at the time,
though both Apple and Microsoft constantly release updates to patch security holes. There are
also significantly more antivirus and other security programs available for Windows; the
repertoire of security software available for the Mac OS is small.
Price :

Mac computers are almost infamous for their prices, which tend to be much higher than other
computers of similar builds. Windows computers are anywhere from slightly cheaper than
Macs to drastically less expensive, especially if you build your own Windows PC. Macs are
nice to look at and function well, but for some users, they aren't worth their added price.

REFERENCES :

https://www.microsoft.com/en-us/annualreports/ar2018/annualreport#primaryR3

https://research-methodology.net/microsoft-corporation-report/
https://www.grin.com/document/336767Bottom of the Pyramid Strategy – The Real
Challenges and Their Solutions
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