Business Project: Microsoft Competitive Market Analysis Report

This business report provides a comprehensive analysis of Microsoft's competitive position in the market. It begins with an introduction defining the core concepts of business and organizational structure. The report then dives into a comparative analysis of Microsoft's competitive market segment, leveraging Porter's Five Forces model to assess its competitive advantages, including cost leadership and differentiation strategies. The analysis examines the impact of factors such as competition, threats of new entrants, bargaining power of suppliers and buyers, and substitute products. The report further discusses the challenges Microsoft faces when trading globally, such as dynamic regulatory changes and supply chain management issues. Finally, it explores suitable theoretical techniques to enhance business performance, concluding with a summary of the key findings and recommendations. The report also touches upon Microsoft's global operations and its efforts to maintain a strong market presence.

Business project

Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................4
Describe comparative analysis of company's competitive market segment position to gaining
competitive advantage............................................................................................................4
Discuss the different challenges the company needs to consider when trading across globe 7
PART 2..........................................................................................................................................10
Explanation of suitable theoretical techniques that enhance business performance............10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is defined as the entity in which group of various individuals come together in
order to achieve all defined goals and objectives. In an organisation a proper hierarchical
structure is formulated and effective and appropriate employees are appointed at all level and
proper allocation of roles and responsibilities are done among all members. Various tools and
techniques are executed by any organisation in order to improve organisational profitability and
productivity. In order to sustain in competitive environment as well as gain various competitive
advantages it becomes important to increase productivity and profitability level and provide
better quality product and services to potential customers (Saranga and et.al., 2018). If business
provides products and service according to requirements of customers than this will lead the
organisation towards take various competitive advantages as compared to its respective
competitors in respective market place. Customer satisfaction increase the sales of organisation.
it is the effective tool for organisation in order to enhance profitability as well as productivity
level and attain all goals and objectives. To sustain in market, business should analyse all current
market trends, competitors as well as customers needs, demands and preferences and current
marketing positioning. Proper analysation of business positioning helps to determine the factors
that where business stand in the market among various competitors and what it want to achieve
in future. By evaluating these factors and market analysis facilitates the organisation to formulate
effective strategies and implement them efficiently in order to complete all functions in defined
manner and achieve all goals that are decided by the management of respective organisation. in
this report the chosen organisation is Microsoft which is American multinational technology
company (Chatzoglou and Chatzoudes, 2018). The respective organisation is founded in 4 April
1975 by the Bill gates and Paul Allen, headquarter of organisation is situated in one Microsoft
way Redmond, Washington, United State. It involves in various activities such as developing and
manufacturing computers software, personal computers, consumers electronics as well as various
relative services to customers. Microsoft windows is the best product of Microsoft. It is world’s
largest software producer organisation on the bases of revenue record of 2016. In this report
competitive analysis of respective organisation that determine the competitive positioning in
competitive market environment and provide various competitive advantages are covered. There
are various challenges that are faced by the organisation in order to trading out of countries are

discussed and suitable theoretical techniques that are adopted by the organisation also discussed
in the project report.
Part 1
Describe comparative analysis of company's competitive market segment position to gaining
competitive advantage
The completive advantage combines of components that create organisation different in
comparison from its competitors. This effective tool aids the mismanagement or marketing
manager in improving efficiency and level of profitability. This develops the ability of the
company to generate more revenue and profit while delivering qualitative goods or services.
Competitive advantage combines of several components such as positive brand name, enhance
consumer base, and deliver qualitative products and much more that enhance company position
in the market. In order to identify organisation position in the competitive market, entity can
carry out comparative analysis (Latukha, Lisina and Panibratov, 2019). This will facilitate
company to examine its existing position of the market and analysis future capacity to
accomplish future market position in the industry. By this they can easily determine its
consideration to achieve competitive benefit in the market. In context of Microsoft, enterprise
adopted porter five force models to evaluate comparative analysis to enhance organisation
competitive position in the market.
Porter's five force model: this is most effective technique of marketing that is adopted by
manager or management to examine various forces to identify competition level that aids in
improving competition market. By this organisation can raise the profit and revenue at high
level. This model aids in examine the buyer and supplier power in the existing position market
(Davis, 2019). It also examines current completion level in the market segment. It examine threat
level of organisation that face while increase in the competition of new entrants. It includes
substitute commodity in the existing market segment by its competitors. In context of Microsoft,
the porters five force model examines and evaluate the level of completion in several market
segment that is given below-
Level of competition: the first component of this model is competition that occurs in
existing market segment. The increase number of competition level depend on existing

competitors in market segment. This component ensures that organisation will hold lower
power of market segment if more competitors are delivering similar goods and services in
market segment. In context of Microsoft expand and executes its business operations in
several segment of market. This facilitates high competition that majorly influences the
performance and progress of the industry in several market segments. Competition level
affects overall growth and development in market segment. For dealing with this high
competition they need to adopt the strategy of differentiation in market. They must deliver
qualitative products with high productive value to their mass audience. This will enhance the
level of their consumer base in the industry. They must try to improve public image
continuously. So that they can beat its competitors by building strong brand from its
competitors.
Threat of new entrants: in porters five force model, it refers to entry of exclusive or new
enterprise in the current market segment that influence current entity along with the profitability,
progress of company. The organisation that have high powerful barrier in industry can imposed
high price value for its goods and services. By this strategy they can create more income and
revenue (Cantele and Zardini, 2018). In context of Microsoft most of the new entrants came with
innovative and creative goods or services. This affect the overall market share of the company
and influence its profitability. For dealing with this high competition in its several market
segment they need to improvised the level of efficiency in its business operations and operations.
They should also brings more innovative and creative commodities to face high competition.
Through this they easily face challenges and enhance its public image. This will enhance the
market share and increase in the economy. They must focus and aims towards in building strong
research department who brings opportunity for the development of industry.
Bargaining power of supplier: this components of porter five force model defines more power
of holding market share gets high if the number of supplier is few in market segment. If the
supplier number is low as compare with number of companies in the industry at that case
supplier of that industry can gain more bargaining power in company. In context of Microsoft the
business operations of company executes in several types of market share and they have to face
high level of supplier (Farinha and et.al., 2018). The increase number of supplier power decrease
the progress and profitability of company. In the industry they face lots of problems related with
supplier so they need to modify their strategy to increase their efficiency to manage bargaining

power of supplier. They need to increase and enhance its supply chain management so that they
can deliver maximum numbers of commodity to satisfy potential consumer. The loyal supplier of
company can improves its high power in the market segment.
Bargaining power of buyer: the bargaining power of buyer defines that power of consumer
barging is depend on increase level of buyer that one organisation have more loyal buyers. If
company have potential buyer then its level of buyers power become more stronger and high. In
very simple language, low or less buyers will conduct high power of bargaining in the market
segment (Nassos and Avlonas, 2020). In context of Microsoft, they have large level of loyal and
potential consumer around the globe in several market segments. So they found some problems
to manage the global consumer effectively. The demand of consumer influence overall growth of
the company. This affect the revenue and profit of the entity. The company has more loyal
consumer so they are in favour to enhance consumer base. They always try to brings creative
product to satisfy the demand of loyal consumer.
Threat of substitute products: this is one of the last force of porters five force model defines
threats of substitute commodities. Most of the companies are delivering similar type of goods
and services by their competitors. This act as a threat for the company as they also are producing
same commodity in the market segment. This will lesser the power of current company and
decrease its profitability level. In context of Microsoft, it is most leading company in the
industry, they are delivering similar products as compare to its competitors. Hence company
need to improve its product with innovation and creativeness so that they will reduce the threat
of substitute goods and services. They must satisfy their potential consumer as per the demand
and need (Liu and Huang, 2018). It will increase their level of consumer base. They need to
examine efficiency in their stock so that they can deliver productive commodity to their target
audience in time.
Examine how company's business action enhance competitive advantage
Through effective competitive advantage company can easily enhance the level of
profitability and efficiency by delivering productive goods to their target audience. In context of
Microsoft, they adopted several strategy to improve or enhance its competitive advantage in the
market segment. Here are some factors that company can implement to raise competitive
advantage.

 The organisation can use cost leadership strategy to enhance competitive advantage.
Through this strategy company provides low price goods and services to their mass
audience (Yadav, 2017). This will improve cost of operation and gain competition
benefit. By implementing this strategy they can enhance new and existing consumer. This
will facilitate public image and the level of profit in the company.
 Company can adopt the strategy of differentiation by this entity can deliver differentiated
goods or services as compare to its competitors. Using this strategy efficiency and
profitability of enterprise goes on boom.
 Using unique strategy of goods and services they can enhance and attract new or existing
consumer. They can easily maintain overall progress and market growth of the business
by delivering unique commodities.
 By delivering unique, creative and value added services or goods to their mass audience
they can continuously improve the loyalty of potential consumer. They would like to
purchase only company goods or services because of its unique and value added services.
Discuss the different challenges the company needs to consider when trading across globe
There are various challenges are faced by the respective organisation in trading across globe.
Organisation evaluate all these factors effectively and develop appropriate strategies in order to
overcome these factors and grab various opportunities by trading internationally. To conduct
business activities at international level all challenges as well as opportunities are properly
analysed than take effective decision to target a specific market of other country that provides
various advantages and enhance global reach of respective business (Chae, Koh, and Park,
2018). Microsoft have to consider all challenges while trading across the border which as
discussed below:
Dynamic regulatory changes: There are various changes are happened in the economy of a
country continuously that affect business procedure and its function. Every country’s condition is
different from each other so dealing with other country organisation should understand all terms
and conditions properly. Company needs to follow up all regulatory changes that are take place
in order to ensure that organisational product and services must fulfil all legal requirements that
are imposed by the government of country. In context of Microsoft, company updates all
procedure according to regulatory changes and all legal requirements are followed by the
respective organisation in order to run business in ethical and smooth manner.

Selecting appropriate target market: It is very important factor to dealing business across the
border that proper target market as well as targeted audience is chosen by organisation in order to
provide better quality product and services. Language is most effective factor that impact on
business such as customers are not able to buy product from company website if it is not in local
language. In order to attract potential customer the organisation should translate all information
and price according the local language, so customers can purchase things easily. Target market is
chosen after evaluating various factors that enables to increase organisational sales and profit
ratio as well (Chuang, and Lin, 2017). Microsoft use various websites in order to each of
potential customer across the border that contains information in local language accordingly.
Having a trusted logistics partner: It is the biggest challenge for organisation to get trusted
logistics partner to conduct business with other countries that facilitates the organisation to store
their inventory, provide all ordered materials as well as provide various services related to
customers. If organisation get effective logistics partner and services then it able to get its orders
on regulator bases and help in increasing sales and build reputation of organisation across the
globe. Effective and appropriate logistics is the most important factor that enhance the growth
and development of organisation as well as help it to expand business in various other counties
also. Effective products and services also attract customers world widely (Hsu,and Chen, 2019).
Microsoft provides the better-quality services to its customers according to their requirement and
convenience. As respective organisation is the most reputative software developer company so it
has various effective partners that provide it best material and help to provide its products across
the world with more efficiency.
Higher international costs: In order to conduct business internationally, organisations have
to face various problems and challenges of international cost with is very high. Organisation
have to try various solutions for exchanging international currency in effective manner.
Companies which as dealing with other counties and provide its products and services, currency
exchange is the biggest problem or hurdle because of high currency rates. In international
business currency change is the important part because without converting international currency
in local currency business determine its profit and not able to take it for further organisational
use as well. Customers of different country pay for products in their country currency and
organisation have to exchange it in their own country currency. In every country specific board is
maintained that is established by government and they charge some money in order to exchange

currency. Microsoft is the well-known brand and linked with various countries so it quite easy
for it to exchange currency in US dollar. It provides various benefits to the organisation in order
to conducting business in with other countries.
Regular changing standards: There are various changes are happened in the business standards
and various other rules and regulations are included by the government in order to strengthen the
international business but regular changes create the challenge for organisations who conduct its
business activities across the border. So, organisations have to compile all regulation and
standards of country accordingly with they are dealing. Every country has their own regulations
and standards and various changes are happened in them according to requirements, so an
organisation can deal with every country with same standards (Jordão, 2017). It becomes
important to make sure and understand the all rules and regulations first before doing business
with particular country and it creates problem to the organisation. Microsoft dealing with various
different countries so, it has to understand all rules, regulations, standards and measures all
changes in these regulations regularly than conduct business activities with them accordingly.
Take too much time to enter the market: There are various challenges and regulatory
compliances that make it difficult to enter in the new international market and provides its
products and services in effective manner (Kim, Kim, and Qian, 2018). It takes too much time to
enter in different market that increase the cost of organisation and also effects its strategies
effectively. Too much delay sometimes affects business and in increase the level of loss that is
not bearable to the organisation. companies conduct business cross border trades in order to get
potential market and customers than their respective competitors. Microsoft have to evaluate all
current market trends that facilitates the organisation enter in the potential market place that
achieve all defined objectives within time period.
High compliance cost: The cost of compiling all rules and regulations in business process as
well as various delaying cost makes it more expensive to enter in new market of other country.
High cost creates the challenge for the organisations to conduct their activities internationally.
Due to high cost the price of respective product and services get affected that are provided by the
organisation. When high cost is faced by the organisation then it will also affect the production
process and because of that customers have to pay more amount to buy products (Kuo., Lin, and
Lu, 2017). All rules and regulation are plays important role in conducting business across the
border so, all these standards must be followed that ensure smooth functioning of organisation.

Microsoft examine all rules, regulations and standards on regular bases and implement them
effectively in order to ensure smooth working so it facilitates the organisation to deal with other
countries and reduce the cost level also.
There are various challenges that are faced by organisation to trading across the border of
own country. So, it becomes very important to understand all rules and regulations and follow
then in order to target a potential market of other country that enhance customer base of
respective organisation world-wide (Tajvidi, and Karami, 2017). Effective utilisation of all rules
and regulations creates the trust among all customers of other country. All these challenges are
considered by the organisation in order to ensure success in trading of global market place and
provide better quality services to customers. In order to provide products and services to other
country it is important to formulate effective strategies that guide the organisation to enter in
different market as well as attract potential customers to take various competitive advantages
then their effective competitors.
PART 2
Explanation of suitable theoretical techniques that enhance business performance
In order to survive in current competitive environment as well as enhance business
performance and activities it becomes very important to analyse all environmental factors
effectively and formulate strategies that guide business to get sustainable competitive advantages
than their competitors (Khan, 2019). Environment contains various internal as well as external
factors that affect business process and functions. So, organisation examine all factors and
develop planning to overcome harmful impacts and enhance positive factors (Popli, Ladkani, and
Gaur, 2017). there are various theoretical tools and techniques are available that facilitates the
business to enhance performance. In context to Microsoft most suitable techniques are adopted
that help the organisation to enhance business effectively. These techniques are discussed below:
Macro environment analysis: Macro environmental analysis is very important theoretical tool
that facilitates the business to examine various external factors that affect business profitability
as well as functioning. In macro analysis business conduct PESTLE analysis that is stands for
various external factors such as political, economical, social, technological, legal and
environmental factors that affect business performance effectively. Knowledge and
understanding of these external factors help organisation to enhance business and to sustain in

competitive environment. Microsoft analyse all macro external factors that affect business
process and develop effective and suitable strategies that help the organisation to develop and
grow in competitive environment. External factors affect business profitability, productivity and
function in direct as well as in indirect manner (Puspitasari, and Jie,2020). All factors such as
political stability, instability of respective country, current economic trends, rate of interest and
exchange rate of country in which respective organisation conduct its operations should be
evaluates properly. Apart from these there are also other factors such as religious as well as
cultural considerations, technological advancement, innovation and changes, various legislation
like employment laws, employee safety and security laws affect business activities. Proper
analysation of these factors facilitates business to enhance and effective strategies and planning
ease business to extend globally. Microsoft examine all factors effectively creates strong
environmental, technological, legal as well as economical base that enhance organisational
performance and profitability level (Silva, Styles,and Lages, 2017).
Ansoff's matrix: it is one of the effective theoretical technique that can be adopted by
the organisation to improve its business operations and activities. For growth and development
organisation can implement this strategy to upgrade its progress. This will aid in enhancing
overall performance of the entity. In case of Microsoft Company implement four elements of this
matrix –
Market penetration: by adopting this strategy company can increase its sales by
delivering existing product in existing market.
Product development: through this strategy entity can deliver new creative and
innovative product in existing market share.
Market Development: through this strategy company can expand its existing products in
new market segment. This will increase total market share and chance to increase their
profitability. In this they can grab the attention of new consumer base.
Diversification: by this strategy they can bear some risk by enter into exclusive market
with new innovative and creative products.
From the above conversation in context of Microsoft, organisation can adopt the strategy of
product development for improving its business operations, this will facilitates the consumer
base of the business around the globe (Kuncoro and Suriani., 2018). This is one of the leading

organisations in the industry (Liu and et.al., 2018). For gaining competitive advantage they need
to focus upon continuously improvement in its business operations or activities.
CONCLUSION
From the above report it has been concluded that the company business activities
facilitate coordination several function to enhance efficiency. The ultimate goal of the any
business is to deliver productive goods and services to generate more revenue and profit of the
company. In this report to identify organisation competitive market position, here porters five
force model is applied. This will determine comparative analysis of different markets of the
company. This model aids in deciding profitability and competitive position in the market that
combines of various forces. One of the forces states that new business threat occurs into the
market that deliver creative product. While services also determine competitive position in
market segment that can influence progress of organisation as well this also increase the
bargaining power of buyers and suppliers. There is also several substitutes present in the market
place that is similar from other products. In this situation having strong competition in the
market, is beneficial for the company. The company is also applying various strategies to survive
in the market, also this can help to influence the potential customers for buying the products and
services. Although, sometimes company also using the cost leadership strategies by providing
the low cost products to their customers for attracting towards their products. After this strategy
some of the companies are applying the differentiation strategy, to make their products different
from their competitors. The companies are also using the unique selling preposition to make their
products and services different from the competitors. Offering unique products to the customers
help to make the reputation in market, this is the reason customers gain trust towards the
company. However, there are different challenges face by the company for exporting their
products across the borders, also there is competitive advantage for selling the products while
selling the products across the borders. Companies faces the struggle in order to smooth
functioning of their products, because in other countries there are different strategies used by the
country, this is the reason new companies takes time in the establishment and also in recognising
their potential customers. Because customers sometimes takes time for purchasing the products
and services from the new company, because of their trust issues for the particular products and
services for their quality and quantity. In order to gain faith of the customers, the companies