Microsoft Strategic Review

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Australian college of Kuwait

Thursday, January 05, 2012
Microsoft Strategic Review
To: Mrs. Cathy Robertson
Abdulaziz Behbehani 0602151
Mohammed Marafi 0500533 Meshari Al-thebari 0703052

Table of Contents
Introduction3
Short History of Microsoft3
Overview current situation4
Business strategy mission, vision and values5
Mission5
Values5
Strategic planning for Microsoft5
Porter five forces in Microsoft5
Power of Suppliers:5
Power of buyer5
Substitute products and services5
The new entry competitors5
The degree of rivalry among incumbent firms5
Analysis of the external environment5
Macro Environment5
Industry Environment5
Why is Microsoft strong company5
Conclusion5
Bibliography5

Introduction
Microsoft is a global company operating mainly in the field of computer software, with projected income in 2011 of nearly $US70 billion. It employs 92,000 people in over 100 countries, and its headquarters are in Redmont in Washington State, in the United States of America.

This essay will present a brief history of Microsoft. Now we analyze what are the strengths and weaknesses in the company. And will also explain what are the external factors that could affect the company and the analysis using Porter’s five forces and, for example, are potential competitors and what are the existing companies to compete with Microsoft, the power suppliers and the power of the buyer, the goods and service substituted. Short History of Microsoft

Microsoft was founded in 1975 as company writing software for microcomputers. Bill Gates and Paul Allen registered the trademark “Microsoft” on 26 in November 1976. They were fortunate to win a contract to provide the operating system for IBM’s Personal Computer range when it was launched in 1981. This range was a great success, and soon other hardware manufacturers made IBM compatibles but all of these used Microsoft’s operating system causing the company to grow dramatically in it first 10 years.

Microsoft then developed its Office computer program as well as improving their operating system to Windows. These soon became the standard software used in all offices and Microsoft grew to become a large global corporation
Microsoft diversified in the 1990’s into the backoffice software used to run office networks. Meanwhile PC’s started to be used as “home” computers as well as “office” computers and Microsoft software was a popular choice.

Microsoft embraced the development of the Internet in the 1990’s and early 2000’s and their internet browser “Internet Explorer” and Email software “Outlook” became the popular choices.

Microsoft also launched a games console, the Xbox, and tried to get into the mobile phone market, but so far has not had great success. Overview current situation
Microsoft has grown to its huge global size primarily on the back of the growth in PC sales. At the launch of the IBM PC in the early 80’s, it was businesses that bought PC’s and initially it was mainly the accountants and other numbers-based workers who used them. During the 1980’s and early 1990’s, growth in sales came from further penetration in the business market to other knowledge workers such as sales and marketing. It was at this time that the sale of pc’s to individuals for home use started to grow. With the development of the internet and use of email, sales of PC’s continued to grow strongly in both business and home markets throughout the first decade of the 21st century.

Although there was fierce competition for the hardware side of all these PC sales there was very little competition for the software side – almost all theses PC’s had Microsoft software installed. Microsoft obtained large revenues from these PC sales.

Microsoft has attempted to diversify. It has moved into games with the Xbox, mobile phones (most recently...
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