Saturday, May 22, 2010

Where is Microsoft Today?

INTRODUCTION

In 1975, Bill Gates and Paul Allen founded Microsoft and now, Microsoft is a leader in the field of computer programming, with $58.43 billion of revenue in FY2009. Its software products run from operating systems, personal computers, mobile phones, and other devices to software development tools, video games, and hardware such as the Xbox 360 and Zune. Mission of Microsoft "To enable people and businesses throughout the world to realize their full potential".

STRENGTHS

Huge Global Brand name

Rapid product development - Microsoft is also known for releasing new product updates and product fixes throughout its network, for example, Microsoft SharePoint Server 2010.

Wide distribution channel easily accessible to the consumers and businesses

Cash rich – Ability to conduct intensive R&D

Consumers might be resistance to change in the short run

WEAKNESSES

Lack the openness in sharing its software’s programming codes which does not allow modification by external programmers if bugs or malwares are detected

Lack strong customers care service

Failure of Windows Vista - Poor performance and reliability with hard and software incompatibility issues and lack of driver support

Market has matured – Difficult to change the market

OPPORTUNITIES


Diversification during the past years via expansion into the gaming arena, for example Xbox and government agency like the military, for example, Command and Control solutions are built on a robust and security-enhanced Microsoft platform designed for military messaging and situational awareness to increase accuracy

THREATS

LINUX (open source, easy to use and can be obtain free of charge) and MAC (interactive interface and good graphic design and presentation software)

Competing with other established players, for example PlayStation in the gaming industry

Government control


Internet explorer vs Google Chrome and Mozilla Firefox

Piracy issues

CONCLUSION

As of today, Microsoft is still the leading company the software industry (“With the release of Windows 7 in December 2009, Windows finished the year with roughly a 92% market share, as well as an 80% market share among enterprise customers and a 63% market share in web browsing through Internet Explorer.” – Microsoft.com), we can see that it has issues to combat to prevent the loss of market share to competitors. Windows Vista was not successful but Linux and MAC did not really capitalize on the opportunity. Another of such plunder, Microsoft might face the music.

RECOMMENDATIONS

Microsoft should listen to the desires and wishes of the customers and to conduct R&D in ensuring that it’s products is of superior standard as compared to its competitors and it’s after sale services. Microsoft should also combat the issue of piracy by ensuring that their products are pirate proof.

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