Global Market and International Business Strategy Analysis for Microsoft

The Global
Marketplace

Table of Contents
1. INTRODUCTION ......................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Global Trade and Globalisation .........................................................................................1
2. International Business Frameworks Which Illustrate How (Your Company) is able to Gain
a Competitive Advantage on a Global Level.........................................................................1
3 An Analysis of International Business Strategy in Relation to Microsoft..........................2
4. Recommendations .............................................................................................................3
5. CONCLUSION..................................................................................................................3
6. List of References...............................................................................................................3
7. Appendix .....................................................................................................................................3
Porter Five Forces ...........................................................................................................................5
SWOT Analysis ..............................................................................................................................5
5. PowerPoint Slides For Presentation ..................................................................................6

1. INTRODUCTION
Globalization is basically the word which is used for the purpose to describe the growing
interdependence of the cultures, economies and populations brought about by cross border trade
in people, technology, information, flows of investment and services or goods. The report
basically focuses on the impact of growing and strategic significance on global organisation in
the technological sector. Furthermore, the report focuses on analysing the range of market entry
strategies and internationalisation in order to sustain and expand their market share globally.
MAIN BODY
1. Global Trade and Globalisation
The Concept of PESTEL Analysis is basically used for the purpose to analyse the company's
business environment. In reference to Porter's five forces it generally comprises of forces which
are significant for the industry in order to determine the strengths and weakness of the
organization.
2. International Business Frameworks Which Illustrate How (Your Company) is able to Gain a
Competitive Advantage on a Global Level
Absolute Advantage: It can be basically defined as the corporation's ability to produce services
or products at a low cost per unit through using minimum resources in a more efficient manner.
Comparative Advantage: It is basically a economy's ability to produce a particular service or
good at lower opportunity cost than its trading partners (Skačanová and Battesti, 2019).
Heckscher-Ohlin Theory: It is basically a theory of comparative advantage which was created by
Bertil Ohlin and Eli Heckscher at the Stockholm School of Economics.
1

Product Life Cycle Theory: It basically involves the set of tactics which is generally utilised by
the management of the company as a product progresses through its own life cycle.
New Trade Theory: It basically means a group of business theories in the world trade theory
which arose in the late 1970s and early 1980s and focuses on the importance of expansion of
network effects and expanding scale returns (Hu, Hu and Crowley-Vigneau, 2018).
Porter's Diamond Theory: In case of this theory, it basically defines the competitive advantage of
the country in the global marketplace.
3 An Analysis of International Business Strategy in Relation to Microsoft
An International Business Strategy also known as the first approach carried out by various
organizations with global expansion which comprises of import and export of services and goods
(Gordeev, 2020).
In case of Microsoft, Corporate Strategy is followed for the purpose to achieve market
domination through expanding and fostering innovation. The organization can do this through
incorporating the skills of its vast employees into its products.
Mission: To assist companies and Individuals throughout the globe in realising their full
potential.
Vision: It basically presents the notion of how the company goes beyond and above to install
good changes in its clients (Haddad, Sanders and Tewkesbury, 2020).
Value Creation of Microsoft: With the support of its hardware and software, the company can
enhance the lives of its customers.
In case of Microsoft, the company uses Corporation basic Strategy in order to gain a competitive
advantage for the purpose to diversify in broad manner.
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