Microsoft Defends Its Empire – the Future of MicrosoftEssay Preview: Microsoft Defends Its Empire – the Future of MicrosoftReport this essayMicrosoft was founded in 1975 and it was first publicly traded on March 13, 1986. It opened at $25.50 and closed that day at $28.00. The stock closed October 18, 2010 at $25.82. The stock has increased in value and split nine times since inception. Microsoft has sustained many internal and external changes throughout time. The popularity of the Internet is one of the changes Microsoft is currently reacting to. The Internet changed the way all companies would need to conduct business in order to become or stay successful. From the mom and pop shops in quaint communities to giant retailers around the globe, nearly all companies have a website. Consumers use websites to shop, research, and bank, just to name a few purposes of the Internet. Microsoft is no different in needing to react to the every growing popularity of the World Wide Web.
The Future of Microsoft Reports at the End of this postMicrosoft’s business plan was established in 1975 to enhance the overall operations of Microsoft. The first three years and most of the company’s three largest divisions include the U.S., Canada, and Mexico. The company was the first publicly traded company to expand into the Asian region, and also the first to market with a highly recognized Internet presence. In 1975 Microsoft began operating its most important online store in Europe. By 1985, it also opened its new headquarters in Germany and it began building its largest retail office in Brazil. There Microsoft is rapidly building its biggest customer base, and the company’s growth continues along with the growth of the mobile device industry. In addition to its Internet business Microsoft also owns a high-tech, engineering, and computer infrastructure. All of this in addition to expanding the Internet into the areas of medical, commercial, home automation, and personal computing. This includes the new, more powerful Internet and its expansion back to Japan, Canada, and the Caribbean in a large part as an extension of both Microsoft’s business. In addition to being the world’s largest employer of computer engineers there are other aspects that may affect the company, including its high-tech, engineering, and computer infrastructure. However, it is important now for Microsoft to realize that it could be successful in many areas. Microsoft has made many significant investments in many fields, the most recently being the company’s investments in healthcare, energy, and computer science. Microsoft acquired one of the foremost computer manufacturers, and the largest manufacturer of medical and dental patents. Microsoft has been a member of the CEA, the Association of Computer Science Centers, the National Association of Insurance Commissioners (NAIC), and the American Association of Insurance Commissioners (AIAFC). To be sure this is not a sweeping statement, Microsoft has also taken a number of actions in their support for American scientists that were never intended to be adopted by other countries. Microsoft also has a much more expansive strategy that can help its position expand. For instance, in a September 2012 interview Microsoft President Peter Brimelow told Bloomberg’s Mike Konczal that the organization would expand both its worldwide footprint and its office in New York City. In an interview with Bloomberg’s Mark Bittman, Microsoft’s Ericsson said it has been working to increase its office in the United States “through the Internet.” Brimelow also clarified that he plans to continue to make significant investments in the business of Microsoft, and would continue to make the company a multi-national company (though it may be able to expand beyond its current market dominance in the European and Asian markets). Further, it may be possible to leverage its large scale business activities and reach more global markets to capitalize on its global capabilities. And it appears that Microsoft isn’t just taking corporate action. In February 2012 Microsoft was fined $10 billion by the U.S. government for antitrust violations. On September 16 Microsoft issued a cease-and-desist order against “one of the largest Internet companies in the world” and the head of the Internet Engineering Task Force (IETF) of the World Wide Web Foundation (WWF) in San Francisco stated in an Executive Announcement that at a September 26, 2012 meeting of the IETF, he “was surprised when a group of members said their concerns about the future of Microsoft’s Internet products included not having the “ultimate control over the operating system,” but controlling the company’s Internet business as such. “This decision came from the highest levels of our company on a technical level, a decision that was made based on what we understand to be its core value proposition: to make the Internet more accessible at a scale that no other company [has made] for most of human civilization,” Microsoft’s CEO John Stempel told Business Insider before announcing the end of the Google Fiber contract in May 2014, following the announcement of “the first phase of the new Internet backbone.” Microsoft is
The Future of Microsoft Reports at the End of this postMicrosoft’s business plan was established in 1975 to enhance the overall operations of Microsoft. The first three years and most of the company’s three largest divisions include the U.S., Canada, and Mexico. The company was the first publicly traded company to expand into the Asian region, and also the first to market with a highly recognized Internet presence. In 1975 Microsoft began operating its most important online store in Europe. By 1985, it also opened its new headquarters in Germany and it began building its largest retail office in Brazil. There Microsoft is rapidly building its biggest customer base, and the company’s growth continues along with the growth of the mobile device industry. In addition to its Internet business Microsoft also owns a high-tech, engineering, and computer infrastructure. All of this in addition to expanding the Internet into the areas of medical, commercial, home automation, and personal computing. This includes the new, more powerful Internet and its expansion back to Japan, Canada, and the Caribbean in a large part as an extension of both Microsoft’s business. In addition to being the world’s largest employer of computer engineers there are other aspects that may affect the company, including its high-tech, engineering, and computer infrastructure. However, it is important now for Microsoft to realize that it could be successful in many areas. Microsoft has made many significant investments in many fields, the most recently being the company’s investments in healthcare, energy, and computer science. Microsoft acquired one of the foremost computer manufacturers, and the largest manufacturer of medical and dental patents. Microsoft has been a member of the CEA, the Association of Computer Science Centers, the National Association of Insurance Commissioners (NAIC), and the American Association of Insurance Commissioners (AIAFC). To be sure this is not a sweeping statement, Microsoft has also taken a number of actions in their support for American scientists that were never intended to be adopted by other countries. Microsoft also has a much more expansive strategy that can help its position expand. For instance, in a September 2012 interview Microsoft President Peter Brimelow told Bloomberg’s Mike Konczal that the organization would expand both its worldwide footprint and its office in New York City. In an interview with Bloomberg’s Mark Bittman, Microsoft’s Ericsson said it has been working to increase its office in the United States “through the Internet.” Brimelow also clarified that he plans to continue to make significant investments in the business of Microsoft, and would continue to make the company a multi-national company (though it may be able to expand beyond its current market dominance in the European and Asian markets). Further, it may be possible to leverage its large scale business activities and reach more global markets to capitalize on its global capabilities. And it appears that Microsoft isn’t just taking corporate action. In February 2012 Microsoft was fined $10 billion by the U.S. government for antitrust violations. On September 16 Microsoft issued a cease-and-desist order against “one of the largest Internet companies in the world” and the head of the Internet Engineering Task Force (IETF) of the World Wide Web Foundation (WWF) in San Francisco stated in an Executive Announcement that at a September 26, 2012 meeting of the IETF, he “was surprised when a group of members said their concerns about the future of Microsoft’s Internet products included not having the “ultimate control over the operating system,” but controlling the company’s Internet business as such. “This decision came from the highest levels of our company on a technical level, a decision that was made based on what we understand to be its core value proposition: to make the Internet more accessible at a scale that no other company [has made] for most of human civilization,” Microsoft’s CEO John Stempel told Business Insider before announcing the end of the Google Fiber contract in May 2014, following the announcement of “the first phase of the new Internet backbone.” Microsoft is
The Future of Microsoft Reports at the End of this postMicrosoft’s business plan was established in 1975 to enhance the overall operations of Microsoft. The first three years and most of the company’s three largest divisions include the U.S., Canada, and Mexico. The company was the first publicly traded company to expand into the Asian region, and also the first to market with a highly recognized Internet presence. In 1975 Microsoft began operating its most important online store in Europe. By 1985, it also opened its new headquarters in Germany and it began building its largest retail office in Brazil. There Microsoft is rapidly building its biggest customer base, and the company’s growth continues along with the growth of the mobile device industry. In addition to its Internet business Microsoft also owns a high-tech, engineering, and computer infrastructure. All of this in addition to expanding the Internet into the areas of medical, commercial, home automation, and personal computing. This includes the new, more powerful Internet and its expansion back to Japan, Canada, and the Caribbean in a large part as an extension of both Microsoft’s business. In addition to being the world’s largest employer of computer engineers there are other aspects that may affect the company, including its high-tech, engineering, and computer infrastructure. However, it is important now for Microsoft to realize that it could be successful in many areas. Microsoft has made many significant investments in many fields, the most recently being the company’s investments in healthcare, energy, and computer science. Microsoft acquired one of the foremost computer manufacturers, and the largest manufacturer of medical and dental patents. Microsoft has been a member of the CEA, the Association of Computer Science Centers, the National Association of Insurance Commissioners (NAIC), and the American Association of Insurance Commissioners (AIAFC). To be sure this is not a sweeping statement, Microsoft has also taken a number of actions in their support for American scientists that were never intended to be adopted by other countries. Microsoft also has a much more expansive strategy that can help its position expand. For instance, in a September 2012 interview Microsoft President Peter Brimelow told Bloomberg’s Mike Konczal that the organization would expand both its worldwide footprint and its office in New York City. In an interview with Bloomberg’s Mark Bittman, Microsoft’s Ericsson said it has been working to increase its office in the United States “through the Internet.” Brimelow also clarified that he plans to continue to make significant investments in the business of Microsoft, and would continue to make the company a multi-national company (though it may be able to expand beyond its current market dominance in the European and Asian markets). Further, it may be possible to leverage its large scale business activities and reach more global markets to capitalize on its global capabilities. And it appears that Microsoft isn’t just taking corporate action. In February 2012 Microsoft was fined $10 billion by the U.S. government for antitrust violations. On September 16 Microsoft issued a cease-and-desist order against “one of the largest Internet companies in the world” and the head of the Internet Engineering Task Force (IETF) of the World Wide Web Foundation (WWF) in San Francisco stated in an Executive Announcement that at a September 26, 2012 meeting of the IETF, he “was surprised when a group of members said their concerns about the future of Microsoft’s Internet products included not having the “ultimate control over the operating system,” but controlling the company’s Internet business as such. “This decision came from the highest levels of our company on a technical level, a decision that was made based on what we understand to be its core value proposition: to make the Internet more accessible at a scale that no other company [has made] for most of human civilization,” Microsoft’s CEO John Stempel told Business Insider before announcing the end of the Google Fiber contract in May 2014, following the announcement of “the first phase of the new Internet backbone.” Microsoft is
The Future of MicrosoftThe decision to rent or purchase may not be a choice only made by persons in the market for a home. Microsoft CEO Steve Ballmer believes offering its software to rent as opposed purchase is the answer to competing with inexpensive software alternatives available on the Internet. Now, businesses have a choice to rent software such as Microsoft Exchange and SharePoint.
The benefit to the consumer is a less expensive route. The cost savings comes into effect when taking the price of personnel and the hardware to maintain the software. Additionally, there would be less maintenance involved for the businesses.
The benefit for Microsoft is more revenue. Ballmer believes he can generate more revenue from large corporations renting software versus purchasing software. Still unknown is the challenge and cost associated with maintenance.
Ballmer has also emphasized the necessity to meet the customers needs. In order to do so, he has made overhauling programs a priority. One of the programs being revamped is the ever popular Microsoft Office. Never before has Microsoft Office been offered for free. A less robust version of Microsoft Office will be offered at no cost for consumers who do not need all the functionalities. The free, less robust option will directly compete with other software alternatives available on the Internet. This version would allow users to access documents on portable devices such as cellular telephones and online.
For users who need or want a more powerful version of Microsoft Office, Ballmer has added more capabilities to the paid version. The paid version of Microsoft Offices offers more fonts, formats, and arithmetic tools. Users have the ability to share documents with groups, allowing them to work together in real time. The additional features in Microsoft Office are an attempt to meet the needs of consumers.
Internal AnalysisTo maintain and potentially grow market share, a company needs to recognize the value of an internal analysis. Internal resources such as financial resources, operating resources, and technical resources, just to name a few, define the strengths and weaknesses of an organization.
In considering an internal analysis, an organization looks at a chain of activities from research and development to sales and service and everything in between. A value chain analysis clarifies for an organization the value a consumer places in every aspect of a product.
Microsoft develops, manufactures, licenses, and supports software products for many computing devices. The companys software products consist of operating systems, server applications, information worker productivity applications, business solution applications, high-performance computing applications, and software development tools. Microsoft also develops the MSN network of internet products and services. The company has a strong brand image, which promotes greater trust in its product and services, which boosts their demand. However, intense competition from various technology players may affect Microsofts margins and market share. (Microsoft Corporation SWOT Analysis, Aug2010, p. 4)
The strengths, weaknesses, opportunities, and threats of Microsoft are detailed below.(Microsoft Corporation SWOT Analysis, Aug2010, p5)Microsofts main advantage is brand recognition and financial strength. Microsoft has the financial resources to focus on research and development. The research and development will allow Microsoft to offer advanced technology to meet the needs of consumers.
Microsoft is attempting to maintain its competitive advantage by designing the new Windows operating system to work with smart phones and portable devices. Microsoft recognizes the growing popularity of portable devices such as Blackberrys, iPads, and Kindles. By introducing an operating system compatible with these devices Microsoft is capturing more market share.
Microsoft can be seen as a server software monopoly. Other products such as IBM mainframes and Linux are not comparable. Microsofts server software is less expensive and more dependable.
Microsofts Internet division has the smallest revenue; thus, it has more opportunity for growth. Microsofts search engine market share is low. To capture more search engine market share, Microsoft launched Bing. Bing is off to a strong start. The Bing search engine focuses on “delivering great search results and one-click access to relevant information, creating a more organized search experience, and simplifying tasks and providing tools that support insight about key decisions.” (Customer and Partner Experience: Increasing the Satisfaction of Microsoft Customers and Partners White Paper, 2010, p. 11)
In the world of entertainment and devices, a product that begins with i holds a large market share. iPhones, iPods and iPads are difficult to compete with. Additionally, there are Blackberrys and Wiis. Cellular telephones that utilize Windows Mobile software and Xbox keep Microsofts entertainment and devices division profitable; however, there is room for growth.
On October 11th Microsoft is due to unveil phones from manufacturers such as HTC and Samsung that incorporate its new operating system, Windows Phone 7 (WP7). An accompanying media blitz will seek to position it as an attractive alternative to Apples iPhone, Googles Android and Symbian, which powers many Nokia phones. The stakes are high for Microsoft and for Mr. Ballmer, whose stewardship of the firm is the subject of intense debate. (Economist; 10/9/2010, Vol. 397 Issue 8703, p90)
Microsoft has the financial strength to conduct research