Microsoft-Strategic Management Process


Strategic Management Process

Strategic management analyzes the major steps taken by the firms or organization top management keeping the owner in confidence, involving resources and performance in external environments. It specifies the organization’s mission, vision, objectives; developing policies and plan. It also contains the steps needed to achieve the objective through proper planning. Five major steps for company to follow while developing strategy (Burgelman et al, 2001)

·         Assessing the competitors and market condition

·         Goal setting and strategy making according to company’s current position
·         Reassessing the goals regularly (Quarterly) to show the progress of implementation
·         Searching for the alternatives or change in the strategy
·         Evaluating and controlling the business process.
Importance of strategic management process
For company to operate under variable market conditions, it is necessary that it has planning. The assessment of competitor gives company a chance to see their position in market with respect to competitors. The steps of goal setting also motivate the employee of the organization to achieve the mutually agreed objectives. Reassessing the strategy helps the company to look after alternatives if planned strategy does not work as per plan. Evaluating and controlling helps in assessing the strategy implementation process and deviation in the process.
Microsoft strategy implementation- Achieving the Competitive advantage by positioning (Carroll, P. 1996)



Horizontal Scope


The main products/ services include language (Software) and operating systems/languages applications. The main products attracted about 90% of revenue in the year1999.
Vertical Scope
The operating system, of the company is popularly known as Windows, has business model in the retail and OEM (original equipment manufacturer, such as Compaq) channels. The sales volume appears predominantly from OEMs. The business of software is done through OEM’s, applications through many channels that consist of corporate site licenses, computer companies, various retails channels and the internet.
Geographic Scope
The revenue originated from several channels throughout the globe. The South Pacific and American region claims for 40% of total revenue in 2001. OEM sales accounted for 30% and remaining30 percentage. Come from the rest part of the globe.
Microsoft strategy

Product market mix


 


Model for applying the strategy- Microsoft model

SWOT Analysis

The assessment of Microsoft’s strengths, weaknesses, opportunities and threats is as follows

Strengths

q  Presence of powerful leadership
q  Availability of large reserves of cash which is needed for quick development by acquisition and research and development of technologies
q  Good experience of the variable market
q  Already having good market share in the field of operating systems and applications software

Weaknesses

q  Proprietary software that is code of platform is not open and open movement in the field of software is getting much popularity
q  The present model is not support sustainable growth because after selling the main product, selling upgrades is only option left
q  Large size of organization make any move to be problematic

Opportunities

q  There is large option left in the Internet and Web Services
q  Another option exist in the field of proliferation of devices
q  Emerging field exist in the field of media Convergence
q  Microsoft can explore the Communications field
q   Renting software can become new source of income.

Threats

q  Open Source Movement poses much threat to window software
q  DOJ (Department of Justice) as many cases is pending against the company



 

      References

Burgelman, RA., Maidique, MA. and Wheelright, SC., 2001. “Strategic Management of Technology and Innovation.” McGraw-Hill Irwin.
Carroll, P. 1996. “Inside Microsoft: The Untold Story of How the Internet Forced Bill Gates to Reverse Course.” Business Week, July 15.
Munro, N. 2000. “A Window in Microsoft’s Strategy.” National Journal, 32(43): 3336.
Patricia Seybold Group, 2001. “Understanding Microsoft's Strategy: .NET, XP and Beyond.”

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