Strategic Management: Analysis of Microsoft Corporation

Strategic
Management

Table of Contents
Introduction......................................................................................................................................3
Company overview..........................................................................................................................3
Philosophy of Microsoft.........................................................................................................3
Current Business Scenario......................................................................................................3
TASK 1............................................................................................................................................4
Porter's Five Forces Model.....................................................................................................4
TASK 2............................................................................................................................................7
Porter's Generic Strategies......................................................................................................7
TASK 3............................................................................................................................................9
Recommendation....................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Strategic management denotes uninterrupted processes of firm that involves developing
plans, tracking performance, conducting analysis and evaluating complete processes that are
required for attaining objectives. It is critical for business to determine the opportunities with
reference to future as well as apply them within their operations through which organisation
goals can be attained in an effectual manner (Barca, 2017). To acknowledge the concept of
strategic management, Microsoft Corporation is taken into account with their headquarters in
Washington. They deliver their services worldwide and are leader within the industry. This
report comprises of identifying and having critical analysis of firm with respect to strategic
management. Different theories will be utilised by Microsoft for executing this concept in
effectual way.
Company overview
Microsoft Corporation is largest technological firm across the world that was founded via
Bill Gates and Paul Allen in the year 1975. They are liable for conducting operations such as
manufacturing, development along with selling computer software, electronics and personal
systems. The firm renders their functionalities across the world as they are trusted by customers
in context of reliability, speed and performance.
Philosophy of Microsoft
Mission statement of firm aims at reaching people worldwide for attaining their aim.
Furthermore, Microsoft’s vision statement is take business into new heights and aid people to
realise their complete potential along with worth of services rendered via them. Basically,
agenda of firm is empowering each person and organisation in an effective manner for
developing as well as evolving further.
Current Business Scenario
At present context, Microsoft is crucial and leading player in electronic subsectors where
other firms are trying hard to have their positioning within the marketplace. The organisation has
already crossed mark of $100 billion by earning near about $110 for the year 2018. They have
high global market as well as effective usage of technology enables them within amplifying their
capabilities. They have opted for innovative creations as well as the perspective that is opted by
them plays critical role to be competent i context of performance. An example can be considered

that will illustrate performance of the Microsoft, they are Windows pro, LinkedIn and Surface.
The other major source that depicts their performance is “commercial cloud” and for illustrating
this category, the services offered by cloud comprises of Dynamics 365, Office 365, Azure and
many more. Firm emphasise on strategies that are being utilised by them as this enables to
conduct their operations in enhanced manner by rendering cloud computing functionalities
(Microsoft Annual Report 2018, 2019). In addition to this, firm have successfully managed
gaming aspects and this has leaded them to attain revenue of around $10 billion.
It is important that each organisation develop and implement strategic management that
enables them to stay one step ahead from their rivals that are present within the marketplace as
this will enable them to enhance overall effectiveness (Bell, Bryman and Harley, 2018). In this
context, Microsoft must conduct detailed analysis that will lead them to conduct critical
evaluation of complete industry and accordingly develop strategies. This is major factor behind
this that leads them within furnishing clear guidelines associated with potential threats as well as
opportunities that organisation can have by successful attainment of strategic management. For
doing so, Microsoft have opted to make use of Porter’s five force model. This will enable them
analyse the entire market in which they are delivering their operations.
TASK 1
Porter's Five Forces Model
The particular model is given in 1980 via Michael E. Porter and this was within the book
named “Strategy techniques for analysing industries and competitors”. After that instance of
time, the specific model is utilised widely for determining industrial structure along with
corporate strategies that have been utilised by organisation. According to, Porter, majorly there
are five factors or forces that are liable for shaping industry as well as market (Chang, 2016).
These forces are accountable for conducting analysis of all the aspects which will provide
organisation with detailed overview of the market in which they are delivering their services.
This enables them to acknowledge the intensity of competition that prevails in marketplace for
captivating as well as improvising profitability of industry will be depicted. These forces
comprises of threat of new entrants & substitutes, power of buyers & suppliers and competitive
rivalry within the market. These factors leads to creation of strong impact on industry as well as
enables them to develop strategies accordingly as this will lead them to make sure that they will