Analyzing Microsoft's Business Model, SWOT, and Competitive Strategy

This assignment delves into the business strategies of Microsoft, focusing on its business model, SWOT analysis, and future competitive strategies. The analysis begins by examining Microsoft's business model canvas, outlining key partners, activities, value propositions, customer relationships, segments, resources, channels, cost structure, and revenue streams. A comprehensive SWOT analysis then evaluates Microsoft's strengths, weaknesses, opportunities, and threats within the global IT market. The assignment concludes by recommending two key competitive strategies for the next five years: continuous innovation in software packages to meet evolving consumer demands and changes in product offerings to cater to a broader market, including low-priced options for SMEs. The aim is to strengthen Microsoft's competitive advantage and boost its revenue generation in the global market. The second part of the assignment involves a new product development plan for New Belgium Brewery, focusing on introducing a range of non-alcoholic beverages. It outlines a seven-step process, from idea generation and screening to test marketing and product launch, emphasizing the importance of market analysis, customer feedback, and strategic marketing to ensure product success. The assignment references relevant academic sources to support its analysis and recommendations.

Running head: NEW PRODUCT DEVELOPMENT
New Product Development
Name of the student
Name of the university
Author Note:

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NEW PRODUCT DEVELOPMENT
Introduction:
Multinational companies need to restructure their strategies in order to ensure that they are able to maintain their competitive
positions in the market. The business model model canvas and the SWOT analysis are two of the tools which business organisations
adopt to form and restructure their strategies. The aim of the essay would be analysing the different aspects of the business of a
company whose CEO was nominated as the ‘Businessperson of the year’ in 2019 using the two tools. The CEO nominated for the
research was none other than Satya Nadela, the fomer CEO of Microsoft. The paper would at first delve into the business aspects of
the global IT giant using the business model canvas followed by a SWOT analysis. Finally, the research would end by recommending
two business strategies which the company would implement in the coming 5 years to strengthen its competitive advantage in the
global IT market.
Business value and potential of Microsoft (Satya Nadela-CEO)1
Key Partners
 Business
customers
ranging
Key Activities
 Research and
development
Value Propositions
 Providing
customers with
advanced software
Customer
Relationships
 Dedicated
customer
Customer Segments
 Business
customers:
1. Multin
1

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NEW PRODUCT DEVELOPMENT
from
multination
al
companies
to small
scale firms
to use
software
packages
developed
by
Microsoft
in their
daily
operations.
 Individual
ranging
(R&D)
 Software
development
 Marketing
software
packages to its
customers
 Customer
service and
support
 Infrastructure
and change
management
 Product and
software
designing and
development
packages to assists
in different
operational areas
like HRM and
project
management.
 Carrying out
continuous R&D to
develop advanced
versions of the
existing software
packages.
 Carrying out
continuous R&D to
recognise new
market needs and
development of
support and
service
 Provides high
quality, trust
worthy and
reliable
products
 Dedicated
sales and
service since
past years
 Certificate
and partner
program.
 Automation
and cross side
network
ational
compa
nies
using
softwar
e
packag
es for
meetin
g their
operati
onal
needs
like
HRM,
CRM
and

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NEW PRODUCT DEVELOPMENT
from
working
individuals
to students
 Licensing and
quality control
 Sales and
marketing
appropriate
software to meet
the needs.
effects
 Customer
assistance
accoun
ts.
2. Profess
ionals

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NEW PRODUCT DEVELOPMENT
who use
the
software
packages
like
Microsoft
Office in
doing their
work like
preparing
assignment
s to
maintainin
g family
budgets.
 Large
numbers of
 Hardware and
electronic
management
who
use the
softwar
e
packag
es of
the
compa
ny
3. IT
trainin
g
institut
es
which
use the
softwar
Key Resources
 Leadership
Channels
 Retailers

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NEW PRODUCT DEVELOPMENT
suppliers of
software and
hardware
firms which
provide
software,
hardware and
IT peripherals
to the
company.
 Fintech
platforms and
banks whose
ecommerce
platforms
handle the
financial
from Satya
Nadella
 Talented sales
force
 Software
developers
 Experienced
and talented
personnel
 Intellectual
property
 Product
innovation
 It
infrastructure
 Artificial
intelligence
 Microsoft
Store
 Company
website
 Internet Bing
 OEM
 Events
 Blogging
 PR
 Microsoft’s
connect
e
develope
d by
Microsof
t to train
their
students/t
rainees
(custome
rs).
4. SMEs
using
software
packages
of
Microsof
t for their

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NEW PRODUCT DEVELOPMENT
transactions
of the firm.
 Insurance
firms which
insure the
assets and
software of
the company.
and research
division
business
operation
s.
 Individual
customers:
1. Working
customers
who use
Microsoft to
fulfill needs
like making
their family
budget.
2. Students
using the
software to
do their

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NEW PRODUCT DEVELOPMENT
assignments.
3. Researchers
using
software likeCost Structure
 Systems development
 Structure development
 Marketing and sales
 Research and development
 Staff recruitment
 Product roadmap
 New projects and development
 Customer support and service
 IT development, operations and maintenance
Revenue Streams
 Products and services
 Revenue from XaaS services
 Products and sales of software
 Subsections
 OEM

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NEW PRODUCT DEVELOPMENT
 Headquarters
 Taxes
 Acquisitions and partnership
SWOT analysis of Microsoft
Strengths Weakness
 Leading software business organization
 Global reputation and brand image
 Global market leader
 Largest company with dominant market
share
 Wide market reach and target audience
 Constant growth rate and reputation
 Overexposure to personal computer
market
 Increase in cybercrimes and cyber theft
 Microsoft lacks innovation as compared
to other competitors like Google
 Lacks leadership in internet browser
segment

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NEW PRODUCT DEVELOPMENT
 Huge market capitalization
 User friendly software
 Inadequate mergers and acquisitions
 Failure of the company in the smart
phone market under the brand name
Microsoft has led to heavy financial
losses.
Opportunity Threats
 Cloud based services have increased
growth and demand
 Technological innovation and artificial
intelligence
 Partnerships and acquisitions
 Increase in the demand and growth of
smartphone industry
 Effective implementation of cost
leadership strategy
 The company has faced many criticisms
for Xbox Live game service.
 Aggressive competition in the industry
 Entry of multinational national players
like Amazon in business segments like
cloud in which the company enjoys a
dominant position.
 Emergence of multinational IT
companies in the host countries like

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NEW PRODUCT DEVELOPMENT
India which are providing strong
competition to Microsoft.
 Changing needs and preferences of the
consumers
 Open source projects
 Increase in cybercrimes and theft
Competitive strategies recommendation for the next five years:
The CEO of Microsoft should form the following competitive strategies for the next five years to boost the competitive
advantage of the company:
Innovation in the software packages:
As per research and analysis, it has been identified that the IT industry is facing stiff competition in the market with the
increase in smartphone companies such as Google, Apple, and Oracle. With the development and advancement of technology, the
consumers in the market demand and expectations have increased. With the emergence of artificial intelligence and robotics,
Microsoft needs rigorous innovation and product improvement. In order to overcome stiff competition in the market, it is

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NEW PRODUCT DEVELOPMENT
recommended that Microsoft needs to upgrade its software and bring further innovations in their products and services. It must
continue to enhance the reputation and brand image in the global market in order to embrace the future innovation.
Changes in the product offerings of the company:
Microsoft in order to counteract the stiff competition it is facing from the emerging IT giants in the host markets like India and
China, the company should develop as well as market low price versions of the software packages. This would enable the company to
cater to the needs of the SMEs besides cater to the MNCs. This strategy would enhance the customer base of the company and the
resultant revenue generation. It needs to continue enhancing its image in the global market through effective marketing tools and
strategies. It is recommended to update the internet browser market and take initiatives to increase the market share in the global
market segment. It is also recommended that the business organization must build more competitive advantages in order to compete
with strong competitors in the market such as Google and Apple. Microsoft must also increase strategic alliances, partnerships, and
acquisitions in order to strengthen its market standings. In order to overcome the prevailing threats in the market, it is recommended to
resolve the cyber security issues and address it by implementing advanced security network systems. Lastly, it is recommended to
diversify its business in order to enhance potential growth and market share. For example, the company can enter the video streaming
platform and the ecommerce market. This would boost the revenue generation power of the company.
Conclusion:
One can conclude that Microsoft should restructure its business strategies to retain its market position in the global IT market.
The business model canvas shows that the company have the capability of catering to wide range of customer segments right from