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Pestle Analysis of Microsoft

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Added on  2020-04-21

Pestle Analysis of Microsoft

   Added on 2020-04-21

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Running head: MICROSOFT REPORTMicrosoft ReportName of the Student:Name of the University:Author’s Note:
Pestle Analysis of Microsoft_1
1MICROSOFT REPORTTable of ContentsIntroduction......................................................................................................................................21.0 Task 1.........................................................................................................................................21.1 Analysis of Internal Resources and Capabilities...................................................................21.1.1 VRIN Criteria.................................................................................................................21.1.2 Competency Framework.................................................................................................41.1.3 SWOT Analysis..............................................................................................................51.2 External Environment............................................................................................................71.2.1 PESTLE Analysis...........................................................................................................71.3 Competitive Forces within Industry......................................................................................92.0 Task 2.......................................................................................................................................122.1 Strategic Options.................................................................................................................122.1.1 Business Unit Level......................................................................................................122.1.1.1 Porter’s Generic Strategies....................................................................................122.1.1.2 Bowman Strategy Clock........................................................................................132.1.2 Corporate Level Strategies...........................................................................................162.1.2.1 Ansoff matrix.........................................................................................................162.2 Justification for Selected Strategy.......................................................................................16Conclusion.....................................................................................................................................18Reference List................................................................................................................................19
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2MICROSOFT REPORTIntroduction Microsoft is an American multinational technological company, which develops,manufactures and sells computer hardware, consumer electronic, personal computers andservices. The operating system of Microsoft has hold 37.43% market share in the world. Thestudy will assess the external and internal situation of Microsoft and provide strategic options forachieving organizational success. The external market and competitive force will be assessedthrough PESTLE and Porter’s Five Force Analysis. The strategic choice options for theorganization will be assessed through Porter’s Generic strategy and Ansoff matrix. 1.0 Task 11.1 Analysis of Internal Resources and Capabilities1.1.1 VRIN CriteriaResource andCapabilitiesValuable RareImitableNon-substitutableCompetitiveAdvantage Worldwide andExtensiveDistributionChannel YesYesYesYesSustained CompetitiveAdvantage World BestLeadingOperating SystemYesYesYesYesSustained CompetitiveAdvantageWide Range ofProduct PortfolioYesYesYesNoTemporary CompetitiveAdvantage SuperiorEngineering YesNoNoYesComparative Parity Strong BrandImageYesYesYesYesSustained CompetitiveAdvantage DedicatedHumanResourcesYesYesNo NoComparative Parity
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3MICROSOFT REPORTInterpersonal Customer FocusDiplomatic Sensitivity Organizational Knowledge StrategicDeveloping TalentsStrategic ThinkingOrganizational AlignmentDelivery Related ResultAchievement FocusAnalytical ThinkingManaging ResourcesTeamwork and Team LeadershipAutomatedProductionYesYesNo NoComparative Parity AdvancedTechnologyYesYesYesYesSustained CompetitiveAdvantageTable 1: VRIN Analysis of Microsoft(Source: Wang 2014)From the above table, it can be found that worldwide distribution channel of Microsoftleverages its operational performance. According to Gouillart (2014), the organization distributesand markets its products and market through three major channels like OEMs (OriginalEquipment Manufacturers). It is highly valuable and cannot be easily imitated by any otherorganization. Therefore, such strong distribution channel leads to sustained competitiveadvantage for the organization. On the other hand, Microsoft.com (2017) opined that theconvenient operating system of Microsoft also forms the sustained competitive advantage.Furthermore, the organization has wide range of product portfolio including windows, server,office, visual studio, surface, window store, Xbox live and others. Such product portfolio ishighly valuable for the organization and it is rare in the market. However, it can be produced bysubstitute in the market. Therefore, such product portfolio can for comparative parity for theorganization. Apart from that, the strong brand image of Microsoft leads the organizationtowards beating the rivals, which contributes in its sustained competitive advantage. 1.1.2 Competency Framework
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