Microsoft Strategy Analysis
1 Executive Summary
After the successful acquisition of Yahoo!, Microsoft has increased its share on the internet search market and become market leader in web-service subscribers. However, it is still far behind Google in the searching advertising market.
Although Google is by far the leading power in search advertising today, internet search technology is still in its infancy and there are much room for improvement. Microsoft shall invest on the R & D research of search technology and the integration of search with its current products. Meanwhile, it shall also invest in the fast growing display advertising market.
Advancement in technology has enable internet to become a platform in its own right. This brings about the rise of online applications and open-source movement, each offering alternatives to Microsoft software offering. This essay analyses each phenomenon and the threats and opportunities Microsoft is facing.
As the most successful PC software company, Microsoft key strength lies in its ability of creating software that help customers to fulfil their potential. In the up and coming age of internet computing, Microsoft shall keep its focus on being a successful software company. This however requires it to make radical change to its business model, development method and its competition strategy.
In section 4, a SWOT matrix is present consisting the opportunities and threats identified in competitive analysis, and highlight the strategies identified. These strategies are then present in section 5.
2 The Story So Far
2.1 Acquisition of Yahoo!
Microsoft has successfully acquired Yahoo!, a company renounced for its internet search and media portal services. This takeover bid has been the most talked about IT and business topic in the year of 2008, for its impact on the IT industry in particular the internet searching and advertising sector.
As a result of the acquisition, in the internet searching market, Microsoft and Yahoo!
After the successful acquisition of Yahoo!, Microsoft has increased its share on the internet search market and become market leader in web-service subscribers. However, it is still far behind Google in the searching advertising market.
Although Google is by far the leading power in search advertising today, internet search technology is still in its infancy and there are much room for improvement. Microsoft shall invest on the R & D research of search technology and the integration of search with its current products. Meanwhile, it shall also invest in the fast growing display advertising market.
Advancement in technology has enable internet to become a platform in its own right. This brings about the rise of online applications and open-source movement, each offering alternatives to Microsoft software offering. This essay analyses each phenomenon and the threats and opportunities Microsoft is facing.
As the most successful PC software company, Microsoft key strength lies in its ability of creating software that help customers to fulfil their potential. In the up and coming age of internet computing, Microsoft shall keep its focus on being a successful software company. This however requires it to make radical change to its business model, development method and its competition strategy.
In section 4, a SWOT matrix is present consisting the opportunities and threats identified in competitive analysis, and highlight the strategies identified. These strategies are then present in section 5.
2 The Story So Far
2.1 Acquisition of Yahoo!
Microsoft has successfully acquired Yahoo!, a company renounced for its internet search and media portal services. This takeover bid has been the most talked about IT and business topic in the year of 2008, for its impact on the IT industry in particular the internet searching and advertising sector.
As a result of the acquisition, in the internet searching market, Microsoft and Yahoo!