Samples Technology Summary of Microsoft Corporation’s Corporate Strategies

Summary of Microsoft Corporation’s Corporate Strategies

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Microsoft Corporation is a leading Corporation within and outside the U.S.A. borders. In order to deliver efficient results, the corporation has been divided into 5 functional divisions. The divisions are: entertainment and device, MS Business, Server Software, Windows and Live Windows Group, and Online services division. All the divisions were completely self-contained until 2003. However, this strategy was changed in 2003 because MS lacked any well-established global strategy that involved all the 5 departments. The corporation requires a certain level of global inclusion and diversity.

This strategy is addressed by three areas in Microsoft, that is, representation, inclusion and innovation. The company believes that the speed at which it penetrates new and existing markets is a factor of global diversity and inclusivity. Another strategy is by applying the Ballmer E-mailing services in its sales. The invention of this service terminated its initial autonomous divisions, thus allowing the company to work jointly as a team under one central management system. The Ballmer system emphasized the urgent need for faster communication process within the Corporation by empowering the employees available in local markets. Microsoft has also been driving an evolution in creating an interface linking the computing interfaces and the web. This is meant to sustain the corporation’s activities in the future.

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Microsoft Corporation has dominated the intersection between the consumers’ access and technology. The corporation’s success over the years can be attributed to its unique approach in terms of the philosophical and organizational structures. Microsoft has been using a business model that can be referred to as “A New Approach”. The company is never stagnant. For instance, when the Google started to take charge of the web market, Microsoft decided to give away their Internet Explorer at no fee. It also exiled the Netscape away from business activities for good. The model’s strength is deep rooted in factors such as the licensing fees to Windows OS users and MS office suite. The corporation also introduced a new method of operations to face its competitors like Google and Apple. The model stresses on a combination of product integration together with what is termed as “freemium” software packages. The core objective of this latest model is to enable the customers to be actively engaged and totally fixed to its products. The model indicated that the company was shifting its attention from the PC’s into the evolving mobile phones and tablets. It was hoped that consumers’ engagement with some of the products from the corporation would increase tremendously when compared to the initial model.

The model aims at retaining the existing customers and at the same time, expanding its market base in accordance with the responses and/or feedback from the customers. The new model successfully introduced products and services that were more compatible with the ones that were offered by the competitors. By allowing Microsoft features such as MS Windows to work in devices such as mobile phones produced by its competitors was a milestone achievement towards responding to the demand and change in the market. Its main competitors are Google and Apple. A feature like Windows OS and Skype are compatible with different devices, hence enabling its consumers to continue using the same products or services for a longer period of time. The company has constantly been adjusting the quality and nature of its products and service, thus enhancing its continuous and sustainable functioning.

Microsoft has diverted some of its attention to focus on cloud computing sales. In order to implement this, the company had to lay off about 3000 workers. This type of sale was a shift from the traditional method of selling its software. This was realized after years of research and is expected to reap more from it. Through this plan, the corporation targets to sale its products and services to companies referred to as commercial clouds. The cloud computing was an initiative of Amazon, a leading provider of internet retailing services. Cloud computing is achieved by allowing Microsoft software and other resources to be warehoused on physical servers which are managed by cloud computing service providers. Different Microsoft users across the globe can easily access the software or information through the internet. This has replaced the use of hardware, thus enabling people to work without being physically present at their offices.

The Company’s model has enabled it to remain relevant in the market despite the eminent stiff competition. For instance, after the corporation exited the web market, it decided to come up with more compatible software. As a result, in 2014, a new vision was unveiled. The company’s Windows software was modified to improve its compatibility with competitor’s products like iPad. Other compatible products includes its MS surface and surface pro that have been competing favorably with devices produced by Apple. The company’s products have been gradually appreciating in value, quality and service delivery. A good example of such an improvement is witnessed in computers whereby the Cortana feature has been enabled to work even when the computer screens are locked. In its attempts to drive an evolution between the computing and web interface, the corporation has developed services such as Azure IoT, machine learning API’s and Bot frameworks. The corporation’s selling activities through company cloud grew by an exciting 56%, attaining a new and all time highest value of $ 45.3 billion in the financial quarter year which ended on the 31st Dec.2017.