Strategic Management: Analysis of Microsoft's Failure and Business Canvas Model

This study analyses the events of failure of Microsoft and presents a strategic framework using Business Canvas Model. It also includes SWOT analysis, PESTEL analysis, and scenario planning for identifying the current issues. The study discusses the reasons behind Microsoft's struggle to develop a sustainable mobile apparatus business and the Nokia deal as one of the biggest blunders of the firm. The subject is Strategic Management, and the course code, course name, college/university are not mentioned.

Running head: STRATEGIC MANAGEMENT
Strategic Management
University Name
Student Name
Authors’ Note

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Table of Contents
-Introduction...............................................................................................................................2
- Failure of Microsoft.................................................................................................................3
-Strategic Framework (Business Canvas Model).......................................................................3
SWOT Analysis.......................................................................................................................10
PESTEL Analysis.....................................................................................................................12
Scenario Planning of the firm Microsoft Corporation.............................................................18
-Conclusion and Recommendation..........................................................................................24
References................................................................................................................................26

3STRATEGIC MANAGEMENT
-Introduction
The current study intends to analyse events of failure of firm with special orientation to the
operations of Microsoft. Microsoft Corporation is particularly an American transnational
technology corporation having headquarters situated in Washington. This company develops,
producers, licenses, upholds and markets software, specialised services, consumer electronics
and personal computers. Also, this study at hand also presents strategic framework
particularly (using Business Canvas Model) for conducting strategic analysis. Furthermore,
the company also uses tools such as SWOT analysis, PESTEL analysis and scenario planning
for analysing businesses and identifying the current issue that is the underlying reason of the
recent failure of the firm.
- Failure of Microsoft
The future of Microsoft became uncertain particularly in the manufacturing business.
Therefore, it is necessary to assess the reason behind why Microsoft has struggled to develop
a sustainable mobile apparatus business. In essence, one of the primary complaints about
Steve Ballmer’s period as chief executive of the firm Microsoft was that CEO did not
respond speedily to immense shift to mobile instruments as well as applications. Whilst
Google as well as Apple were establishing to increase their overall efforts, the company
Microsoft was basically in a specific holding pattern (Walker et al. 2014). However, the time
Ballmer responded, the company Microsoft was lagging behind to effectually challenge the
enormous lead Apple as well as Google had attained.
As suggested by Tan and Carrillo (2017), the Nokia deal can be considered to be a nightmare.
The decision of Microsoft to acquire mobile phone business of Nokia for roughly $7.2 billion
is thought to be one of the biggest blunders of the firm. However, after failing to get much

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value out of the assets or resources of the firm Nokia, the company Microsoft was compelled
to write down approximately $7.5 billion associated to the business transaction and reduced
roughly 7800 jobs. Particularly, the company Nokia was believed to be the corporation that
would improve overall market position of the firm Microsoft (Johnson 2016). Instead, it
became a financial milestone that weighed around overall level of profitability of the firm.
-Strategic Framework (Business Canvas Model)
Three different tools and techniques that can be used to for strategic analysis include the
following:
Business Model Canvas: Microsoft
Key Partners
-Manufacturers
-Wholesalers
-Suppliers
-Telco Corporations
-Foxconn
-Value added resellers
-Distribution Partners
-Retailers
(Scarborough 2016)
-Technology Alliances
-Microsoft is a
founding member of
Open Networking
Foundation
-Microsoft partner
Key Activities
- Product design
as well as
development
-Research and
development
-Development
of software
-Management of
change
-Management of
release
-System of
licensing
-Deployments
-Support for
Value
Propositions
-Brand
-To enhance
overall
productivity at
superior level
-Maker of
world’s largest
software of
particularly
Windows
(Barney 2014)
-Most valuable
corporations
-Productivity as
Relationship with
customers
- Level of trust
-Overall quality
-Overall firm
performance
-Differentiation
- Level of
reliability
- Automation
(whenever
possible)
-Assured sales for
huge accounts
-Assistance
towards customers
Customer
Segments
-Mass Markets
-Business
enterprises
- IT
administrators
-Developers
-Individuals

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network
-Microsoft joined the
institute Linux
Foundation as
specifically Platinum
member particularly
through Microsoft’s
Connect
-Academic
- Governing bodies
-Acquirements of
Microsoft that include
LinkedIn, Nokia
Devices along with
Services, Hexadite,
Yanner as well as
Mojang and many
others
- The company was
the official jersey
financier of National
Basketball team of
Finland during the
year 2015 at the
EuroBasket.
customers
-Quality Control
-Operations
-Management of
infrastructure
-Sales and
marketing
-Hardware as
well as
electronic
manufacturing
well as business
services
-The business
concern also
delivers a broad
range of other
customers along
with enterprise
software for
particularly
desktops as well
as servers
(Barney 2014)
- Computer
Hardware
(referring to
surface series of
specifically
laplets by the
firm Microsoft)
- Consumer
Electronics
(Windows Phone
and Xbox One
Console)
-Program for the
company’s partner
-Level of
certifications of the
firm
-Community
-Effects of same
side along with
cross side network
-Advantages
available to each
and every group
exhibit call for
economies of scale
Key Resources
- Microsoft can
Channels
-Internet Bing

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be considered to
be business
enterprise and
the products are
utilized in
roughly every
computer on the
entire world
- The company
can be
considered to be
a symbol of
everything that
is huge
regarding
information age
-Leadership
potential of
particularly
Satya Nadella
-Software
Developers
(Prajogo 2016)
-Bill Gates
operating as a
technology
consultant
-Flagship Stores
-Microsoft Stores
-Microsoft Azure
Market Place
-Worldwide Sales
along with Support
teams
- Multi-product
sales force
(Fleisher and
Bensoussan
2015)
-Business retailers
-Blogging
-Incidents
-Public Relations
-Future Decoded
can be regarded as
a business
networking event
conducted each and
every year by the
firm Microsoft that
permits business
partners of the
business concern to
share their opinions

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-Sales Force
-Experienced
and specialised
personnel
-Technology
-Data Centres as
well as other
areas of
networking
-Innovation
-Intellectual
Property
(Gerow et al.
2014)
-Determination
-Talent as well
as Corporate
Culture
-The company
Microsoft can
be considered as
the third largest
manufacturer of
mobile phones
manufacturing
approximately
33 million units
-Technical
references for
different
developers along
with articles for
different Microsoft
magazines namely
Microsoft Systems
Journals that are
obtainable through
Microsoft
Developer Network
(MSDN)

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-The company
has ever more
diversified from
particularly the
operating
system market
and has carried
out a total
number of
corporate
acquirements
Cost Structure
-Development of
software
-Manufacturing
specific hardware
-Acquirements as well
as development
-Marketing as well as
sales (Wu et al.
2015)
-Research as well as
development
-Customer Service
-Members of the staff
-Different projects and
projects of
Streams of
Revenue
-Different
subscriptions
-License fees
-Product Sales of
the business
corporation
-Advertisement
Revenue
-Sales of hardware
-Presented as a
percentage

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development
-Roadmap of the
product
-Data centres
-Operations as well as
maintenance of
information
technology
(Dzhandzhugazova
et al. 2015)
-Solar Panels more
than 2000 are on top
of the buildings that is
particularly situated in
particularly Silicon
Valley creating
roughly 15% of
overall energy
required by firm’s
facilities
-Different
headquarters
-Taxation

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SWOT Analysis
Strengths
- Reputed Brand: Microsoft can be considered
to be a multinational firm that functions through
regional subsidiaries. This can minimize cultural
variances in over and above 100 nations.
-Technologically advanced firm: The company
Microsoft can be considered to be a catalyst
functioning in the tech world. Prioritizing
innovation as well as optimization by means of
strong research as well as development action
(Lipman 2015). This functions Microsoft
Research that is one of largest computer science
research corporations that operate in close
collaboration with top notch universities
throughout the world.
-Product Portfolio: The company Microsoft
presents a wide range of software, specialised
services along with hardware solutions across
diverse classes of clientele. This help in enjoying
a foremost position in the market. The company
Microsoft generates revenue by means of
developing, manufacturing, licensing and
upholding software along with services across an
extensive variety of computing instruments. The
company Microsoft also delivers consulting
Weakness
- Legal proceedings: Microsoft can be
considered to be a defendant in different
unresolved cases marked against the same. The
company is currently entangled in different legal
proceedings associating to design of product,
manufacturing and performance liability along
with other litigations associated to agreements,
issues of employment as well as intellectual
property rights.
- Not being able to take charge of counterfeit of
software business in different developing
countries (Horkoff et al. 2014)
-Lagging in the area of innovation: Due to vast
utilization, clientele of Microsoft have a common
grievance that the firm Microsoft keeps
upgrading the product although there is nothing
new from the bottom ups from the reputable
brand. With respect to operating system
capabilities, the firm Apple is considered to be
ahead to be that of Microsoft. Owing to which
Apple is gradually coming up as the selected
operating system.

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along with support service for products/services.
-Extensive system of distribution: Microsoft
maintains and preserves a strong distribution
along with network for marketing that leverages
various functional performances (Kew and
Stredwick 2017). The firm Microsoft sells and
at the same time distributes products by means of
three different channels that is to say, Original
Equipment manufacturers, distributors as well as
resellers and online
Opportunities
- Transforming to Razor and Blade Model: In
place of offering pricey software can operate on
particularly Blade and Razor Model in a bid to
counter illegal utilization of software mainly
operating system, by means of which they can
generate higher revenue.
- Strategic Alliance: The business concern can
concentrate on entering into new forms of
partnerships for improvement of innovative along
with technologically advanced products (Joyce
and Paquin 2016). This kind of partnerships
delivers a competitive edge and permit to garner
higher share of the market. For instance, during
2014, the business concern pronounced 9 new
hardware partners for Windows Phone. In
Threats
-Level of competition: The market for software
can be considered to be highly competitive that
might perhaps influence overall performance of
the corporation. Essentially, the firm encounters
stiff competition in different segments. The main
rivals in the Windows Live Software along with
services comprise of Apple, Yahoo as well as
Google and many others (Toro-Jarrín et al.
2016). Also, the Internet Explorer encounters
stiff competition from varied browsers designed
by particularly Google (Chrome), Mozilla as well
as Opera Software Company among many other.
Also, the server of the firm along with tool
products competes against the associated
offerings made by Oracle as well as IBM.

12STRATEGIC MANAGEMENT
essence, the partners deliver a direct accessibility
to the tools, widening overall scope for firm’s
customers and launching novel points of prices
across primary growth markets.
-Higher demand of smart phones: The
company Microsoft can capitalize over the
increasing demand of firm’s smart phones that is
emerging as an opportunity for growth in both
developed as well as developing countries
(Aversa et al. 2015).
- Swift Technological Alterations: The tech-
world is constantly altering. Business concerns
are finishing up killing their own offering before
competition destroys the same.
-Pirated Market- It is the most important threat
that the company encounters in the segment of
software. Each and every year, Microsoft loses
billions owing to flow of pirated versions across
the entire world. The firm Microsoft loses
considerable amount of revenue due to rate of
piracy of over and above 30% in several nations.
Furthermore, developing countries such as China,
India and many other accounts for key market
that are engaged in illegal utilization of Microsoft
software (Amanullah et al. 2015).
PESTEL Analysis
Managers of the firm Microsoft Corporation comprise of PEST Analysis in their approaches
to comprehend business situations of the corporation.
Political Factors:
This segment of PEST analysis model manages impacts of the government on the remote else
wise macro business environment of hardware as well as software business of the firm.
However, in case of firm Microsoft, the following political external facets can be considered
to be strategic decision making:-

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1) Overall political steadiness in majority of markets (this can be referred to as opportunity)
(Nidagundi and Novickis 2017)
2) Enhancing support for the government for the purpose of automation (this can be indicated
as opportunity)
3) Enhancing internal trade contracts (opportunity as well as threats) (Bull et al. 2016)
Political steadiness of majority of different markets generates numerous opportunities for
Microsoft to augment its investment and corresponding firm’s performance. For instance, the
business concern can augment sales along with investments in marketing in particularly
Europe to attain a corresponding enhancement in overall revenue. Contrarily, the enhanced
governmental support for mechanization presents opportunities for the firm Microsoft to
enhance its overall computer technology sales through governmental clientele (Nidagundi
and Novickis 2017). In essence, these external facets are unimportant, taking into account
large scale purchases of the firm involving government bodies. Further, enhancing worldwide
trade contracts develop a remote otherwise a macro-environmental factor that can support
overall overseas sales of Microsoft (Bull et al. 2016).

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Economic Factors:
Business effects of economic circumstances on the remote or else macro-environmental can
be considered in this segment. Microsoft has the following external economic facets in
stratagems for the hardware as well as software business:
- Significant economic steadiness of majority of developed nations (this can be referred to as
opportunity)
- Higher rate of growth of developing nations (Jaber et al. 2015)
-Enhancing middle class disposable earnings (this can be referred to opportunity)
The firm Microsoft acquire benefits from the significant economic steadiness of the majority
of developed nations. For instance, the firm can anticipate stable performance in these
specific markets. The firm Microsoft has the capacity to boost overall sales figure in high
growth developing nations. In essence, this specific opportunity translates into steady level of
growth in worldwide sales figure of Microsoft (Rothaermel 2015). Furthermore, the
economic external facets of the entire worldwide increase of middle class disposable earnings
generate opportunities for the firm for higher rate of revenue. In essence, this specific
condition is due to fact that middle class clientele are among the most important sources of
revenues for the firm Microsoft. Therefore, the corporation can exploit opportunities of
growth in the remote otherwise macro-environment (Leiber et al. 2018). Furthermore, the
Microsoft have the need to strategically address opportunities in particularly computer
hardware as well as software industry settings, as highlighted in this segment of the PEST
Analysis.
Social Factors:

15STRATEGIC MANAGEMENT
This segment of the PESTEL analysis model takes into account the manner social settings
exerts influence on remote else wise macro-environment of Microsoft, particularly in respect
of behaviour of customers as well as expectations. In essence, in the market of computer
technology, different socio-cultural external facets that exert immense impact on Microsoft
include:
1) Steady attitudes regarding leisure (this can be referred to as opportunity)
2) Enhancing diversity of culture (this can be referred to as opportunity as well as threat)
3) Steady demand for higher quality customer service (this can be referred to as
opportunity) (Rothaermel 2015)
The steady attitudes regarding leisure present definite opportunities for the company
Microsoft to design products that can meet leisure preferences of different customers. For
instance, the firm can enhance its investment in innovating computer gaming products for the
current purpose. Furthermore, augmenting cultural diversity can be considered to be potential
threat particularly against Microsoft with regard to product-customer disparity in the remote
or else macro-environment (Paul et al. 2014). For instance, satisfaction of customers can
decline as products of the firm meet only biggest cultural clusters. Nevertheless, the firm has
an effective opportunity to enhance its goods as well as services to deal with this issue.
Contrarily, the steady demand for higher level of quality of customer service generates
opportunities for the corporation to enhance customer support actions.
Technological Factors:
The influences of technologies on the remote else wise macro-environment of particularly
computer technology segment are recognized in this area of PEST analysis model (Keller et
al. 2017). The firm Microsoft has the need to assimilate the following external technological
facets in business strategies:

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-Quick implementation of mobile technology (this can be referred to as opportunity as well as
threat)
-Enhancing volume of particularly online business transactions (this can be referred to as
opportunity as well as threat)
-Augmenting mechanization in particularly business (this can be referred to as opportunity)
Microsoft can enhance business performance by means of rapid innovation of mobile
instruments. In this regard, this opportunity is founded on quick adoption and enhancing
demand for mobile technology. Nonetheless, this external technological factor can be
considered to be a threat that helps competition against Microsoft (Kew and Stredwick 2017).
The technology corporations can exploit this opportunity to enter the specific market.
Enhancing volume of online business transactions deliver opportunities for the firm
Microsoft to design higher number of products that uphold secure online business
transactions processing. However, this enhancing online transactions of volume also threatens
the firm with regard to corresponding enhancement of cybercrime attacks and this is can be
considered to threats recognized in SWOT Analysis of Microsoft (Keller et al. 2017).
Further, the firm has a prospect to develop through firm’s products that facilitate businesses
to automate more of their procedures.
Environmental Factors:
In this segment of the PESTEL analysis model, influence of environmental issues on
particularly hardware as well as software of industries can be considered. Essentially,
Microsoft encounters the following ecological external facets in remote else wise macro-
environment:
- Augmenting preference for different green products (this can be referred to as opportunity)

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-Enhancing concentration on sustainability of business (this can be referred to as opportunity)
(Grünig and Kühn 2015)
-Augmenting availability of different recyclable substances (this can be referred to as
opportunity)
Founded on the enhancing inclination for green products, the firm Microsoft Corporation has
the opportunity to augment its sustainability position. For instance, the business concern can
design comparatively more environmentally friendly products and increase utilization of
green energy in business opportunities. In association, Microsoft’s endeavour to enhance
sustainability to directly address overall opportunity founded on enhanced focus of
communities on sustainability of business (Grünig and Kühn 2015). Furthermore, the
enhancing availability of recyclable materials is an important external facet that the
corporation can utilize as basis for enhancing the usage of recycled materials in hardware as
well as software products along with packaging.
Legal Factors:
The significance of rules as well as regulations is ascertained in this segment of the PESTEL
Analysis. In the microenvironment of the firm Microsoft, the following external facets affect
strategic success comprise of:
- Enhancing rules of electronic waste disposal (this can be referred to opportunity as well as
threats)
-Enhancing regulations of patent (Cairns and Wright 2018)
-Regulations of energy consumption (this can be referred to opportunity as well as threats)

18STRATEGIC MANAGEMENT
Enhancing electronic waste disposal regulations can be considered to be an opportunity for
the firm Microsoft to execute more effectual recycling as well as disposal programs that
enhance brand image. Nevertheless, these legal external facets can be considered to be a
threat that can impose supplementary challenges for the firm in addressing environmental
influence of the business (Cairns and Wright 2018). Contrarily, improving patent regulations
aid global rate of growth of Microsoft by gradually lessening issues, namely piracy of
computer software. In essence, the corporation also has an opportunity to augment products
to assist client firms lessen their level of energy consumption by means of energy-efficient
computing technologies. Founded on this segment of the PESTEL analysis, the firm
Microsoft has growth opportunities in particularly remote else wise macro-environment
(Cairns and Wright 2018).
Scenario Planning of the firm Microsoft Corporation
Scenario Planning can be considered to be scenario as well as contingency planning that
refers to a structured manner for business concerns. A cluster of executives establish to
design a small number of scenarios. The reality is that each and every decision of Business
Corporation can be founded on data and evaluation than intuition as well as gut feelings. As
rightly indicated by Walker et al. (2014), scenario planning might perhaps not have dire
consequences in the business corporation, however, risk opening can lead to enhanced costs,
augmented risks along with missed opportunities. The scenario planning in the firm
Microsoft holds four different vital steps. After recognizing driving forces along with critical
uncertainties, the objectives are to develop four different scenarios. The procedures to
generate scenarios in Microsoft can be considered to be simple and are mentioned below:
-Identification of vital uncertainties: After identification of driving forces and listing of the
same, it is important to choose the ones that have immense influence on the business. For

19STRATEGIC MANAGEMENT
instance, two significant uncertainties for technology based business of the company are
innovation and progression, and demand of consumers (Tan and Carrillo 2017).
-Development of a wide range of feasible scenarios: The objective is to frame a type of
matrix with two vital uncertainties as specific axis (Johnson 2016). It is possible to draw four
probable scenarios for the upcoming period depending upon directions of the uncertainties.
-Discussion of the implications:
During the final stage, it is important to illustrate different implications of each and every
scenario and reconsider the strategies. Again, it is important to establish mission as well as
objectives whilst taking into consideration every state of affairs (Johnson 2016).
In the present case, management of the firm can follow the following fundamental steps for
scenario planning procedures that again can be featured as follows:
- Defining issues: Management of the firm can comprehend the issues better with respect to
time frame, different decision variables as well as scope. Also, they can make sure that the
scope of the scenario is wider than the industry segment, different segments of product,
customer clusters and technologies that presently describe the business. Further, it is
important to assess the past to get a better comprehend different degrees as well as extent of
uncertainty as well as volatility that this industry has witnessed and utilize this specific
information as a way of standardizing the time frame and scope. The current issue detected
was the lag of Microsoft and the threat of leads taken by the rival firms such as Apple and
Google (Barney 2014). Also, the incorrect decision of acquirement of Nokia for
approximately $7.2 billion can be supposed to be a mistake for the corporation. This decision
compelled the business concern to write down approximately $7.5 million related to business
dealings and lessened around 7800 jobs. In particular, the firm Nokia was deemed to be the

20STRATEGIC MANAGEMENT
business concern that would enhance overall market position of the corporation. In its place,
it became a financial milestone that weighed overall firm’s profitability level.
-Identification of major stakeholders: The stakeholders who are said to be affected by the
identified issue of the firm include creditors, suppliers, employees, owners, unions as well as
community from which the company acquires resources (Prajogo 2016). All these
stakeholders can be said to have interests in these identified issues and get affected by the
same and are the ones who can exert influence on matters substantially.
-Identification of primary forces that outline the future and are within the scope of
identified issues
The forces that are within the scope of the identified issue include social, economic,
environmental, technological as well as political domain. Essentially, the sub domains
comprise of legal factors, medical aspects or else scientific factors. The overall objective in
this stage is to acquire pertinent information regarding the forces that might alter or else
shape the upcoming period (Wu et al. 2015). The PESTEL analysis carried out in this study
also helps in explaining the environmental forces.
It can be hereby observed that Microsoft enjoys government support and has the opportunity
of augmenting sales through governmental clients. Further, the company has worldwide trade
contracts that can uphold sales figure of the firm. Therefore, it can be mentioned that ill
effects of incorrect decision and consequently failure of the firm can be overshadowed by
these positive factors.
Also, analysis of economic factors indicates towards the fact that there is greater rate of
growth in different developing nations and the firm Microsoft has the opportunity to boost
sales figure in developing countries and develop worldwide sales figure.

21STRATEGIC MANAGEMENT
-Identification of trends or else predetermined components:
The business of Microsoft can be considered to be dynamic as well as highly competitive
with frequent alteration in both technologies along with business models. There is an industry
shift and that can be considered to be an opportunity for conceiving novel products, novel
technologies that can again transform the business as well as the entire industry
(Dzhandzhugazova et al. 2015). The firm Microsoft also pushed boundaries and this is made
possible by means of wide range of research as well as development actions that want to
recognize and address altering demands of clients, trends of industry along with competitive
forces.
Based on analysis of important technology trends and wide concentration on research as well
as development of long term of novel products as well as services, management of the
company witnesses opportunities to develop future growth. The company Microsoft
participate in investing research as well as development resources in novel products as well
as services in specific areas (Lipman 2015). The capabilities along with accessibility of
personal computers, phones, different devices along such as televisions, phones along with
different devices that are powered by software platforms together with applications. Taking
into account this specific trend, it can be hereby believed that complete potential of software
can be observed and felt in the way people utilize these kinds of devices and the related
services at work along with their personal lives.
-Identification of important uncertainties
Analysis of Microsoft’s business helps in understanding important uncertainties that surround
the company. In essence, the future of Microsoft particularly in the smart phone segment can
be said to be uncertain. This helps in explaining the reason behind why the company has
struggled to develop a sustainable mobile instrument business. Also, the company Microsoft

22STRATEGIC MANAGEMENT
was late to the entire game. It can be hereby said that the chief executive officer Microsoft
failed to respond and react promptly to the massive transformation to different mobile
devices as well as applications (Horkoff et al. 2014). Whilst Apple as well as Google started
to gear up their efforts, Microsoft was to a large extent in a specific holding form and by the
time they reacted, they were far behind to effectually confront and defy the lead that
particularly Apple as well as Google has attained.
In addition to this, the decision of the management of the company Microsoft to acquire the
mobile phone business of Nokia for approximately $7.2 billion can also be deemed to be one
of the biggest blunders. After the company failed to acquire adequate value out of the
resources of Nokia, Microsoft was compelled to write down roughly $7.5 billion associated
to the business transactions and reduce 7800 jobs (Kew and Stredwick 2017).
The company was got into an uncertain position when Google made a strong start. It can be
said that Google followed a specific strategy of Microsoft and took a particular page out of
the book of Microsoft with mainly Android. In place of developing own devices like the firm
Apple, Google in its place delivered an effective mobile operating system to different device
makers to aid lessen overall costs of entering into the smart phone market (Joyce and Paquin
2016). As such, this can be considered as the same move that made Microsoft successful in
the arena of personal computers and in the end assisted Android attain a leading position in
the entire mobile market.
Analysis of business dealings of the company reveals the fact that Microsoft along with its
hardware partners has over the years delivered certain good looking instruments, but they
failed to capture the attention of purchasers of smart phone in a way Apple has. It can be
seem that Microsoft attempted to spend billions to create a market momentum although failed
to move the needle (Toro-Jarrín et al. 2016). Also, software design can be extensively

23STRATEGIC MANAGEMENT
marked as one of the primary causes for the company Microsoft’s efforts in the mobile
business.
The company Microsoft has the need to win support of device makers. There remains a
staggering variation in the total number of producers manufacturing Android compared to the
ones making Windows smart phones. The company Google has executed out a fine job of
attracting an increasing number of firms to develop Android devices. Whilst there are certain
big names upholding the firm Microsoft, the best devices are mainly Android based. This can
be considered to be an issue or in other words an uncertainty that the company Microsoft has
the need to address n case if it desires to turn around things (Aversa et al. 2015).
Furthermore, Microsoft was left behind on specific apps for long. Apps can be considered to
be primary drivers of mainly adoption of smart phone in the earlier period.
-Selection of two important uncertainties
Two important uncertainties that can be considered to have affected business potential of the
company include acquirement of Nokia and sustainable mobile phone business segment
(Amanullah et al. 2015).
-Assessment of internal consistency and feasibility
Internal consistency along with feasibility of the projects (decisions of investments-R&D
investments and decisions of acquirements among many others) can be evaluated by using
methods of preparation of specific consolidated financial assertions and associated
information. Internal consistency can be considered to be a typical dimension founded on
correlations between diverse items on similar items. As suggested by Nidagundi and
Novickis (2017), internal consistency enumerated with Cronbach’s Alpha is essentially a
statistic enumerated from correlations between identified items considering the current case.

24STRATEGIC MANAGEMENT
Also, management of the firm can utilize the feasibility study that refers to analysis of overall
practicality of proposed projects. Analysis is founded on an outline design of different system
requirements, to ascertain whether the business concern has the technical expertise to manage
completion of the entire project (Bull et al. 2016). This comprises of description of the
company to evaluate more probable factors that can affect the entire study, examine the
business, different human as well as economic factors along with probable solutions to the
issue.
-Conclusion and Recommendation
The above mentioned study helps in gaining deep insight regarding the event of failure of the
firm and underlying reasons of failure of the firm Microsoft. Also, this study at hand helps in
elucidating in detail about the Strategic Framework of Microsoft using Business Canvas
Model. The company aids in understanding business strategy of the corporation using
specific methods of analysis (that is to say, SWOT analysis, PESTEL analysis, Five Forces
Analysis and Scenario Planning). Results of the analysis help in ascertaining appropriateness
of business strategies of the company.
Keeping in mind the key points of strategic analysis, strategic recommendations can be
generated for the upcoming period. Scenario analysis reveals the issue of high level of
competition and late response and reaction of chief executive officers to market forces and
stimulation. Level of competition can be addressed by way of adoption of differentiation
strategy and expansion of markets for the products of the company. Also, scenario planning
reflects that there is wrong decision on the part of the company regarding acquirements.
Therefore, it can be supposed that study of feasibility can be used for addressing the
recognized issue. Also, SWOT analysis helps in identifying the fact that company gets

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entangled in diverse legal proceedings associated to product designs. The legal issues of the
company can be addressed by development of laws for operations, reporting of legal
proceedings, regular consultation with legal advisor for prevention, control along with
abatement of the identified legal issues.

26STRATEGIC MANAGEMENT
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