Microsoft's Diversification Strategy Essay Example
Microsoft's Diversification Strategy
1. Why did Microsoft, the most successful computer software company, choose to remedy its strategic disarray? Microsoft is a multinational computer technology corporation headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies. However, after a string of bad news seriously undermined the future growth of Microsoft, the bad impression was arisen. Microsoft tried to remedy its strategic disarray, because in the high-technology industry, standstill is equal to commit suicide. IT industry is really a highly competitive industry. Microsoft must to solve their problems as soon as possible. Microsoft was the most successful computer software company. However, if they ignore its strategic disarray, they may be defeated. I would like to use SWOT analysis to illustrate my views why Microsoft chose to remedy its strategic disarray. Strengths: Microsoft is the world's largest software company with global name recognition and strong reputation for innovative products. Microsoft’s Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and cost-effectiveness. Windows 95, 98, 2000 series are globally known as the PC desktop operating system with a market share of about 88%. What’s more, Microsoft has relatively rapid product development processes that allow for timely updating and release of new products. Weaknesses: Between1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the
1. Why did Microsoft, the most successful computer software company, choose to remedy its strategic disarray? Microsoft is a multinational computer technology corporation headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies. However, after a string of bad news seriously undermined the future growth of Microsoft, the bad impression was arisen. Microsoft tried to remedy its strategic disarray, because in the high-technology industry, standstill is equal to commit suicide. IT industry is really a highly competitive industry. Microsoft must to solve their problems as soon as possible. Microsoft was the most successful computer software company. However, if they ignore its strategic disarray, they may be defeated. I would like to use SWOT analysis to illustrate my views why Microsoft chose to remedy its strategic disarray. Strengths: Microsoft is the world's largest software company with global name recognition and strong reputation for innovative products. Microsoft’s Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and cost-effectiveness. Windows 95, 98, 2000 series are globally known as the PC desktop operating system with a market share of about 88%. What’s more, Microsoft has relatively rapid product development processes that allow for timely updating and release of new products. Weaknesses: Between1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the