1. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Presented by :
Sanjay Mishra M
Siva Sagar M
Bhaskar M
Subhankar C

2. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft Corporation is an American multinational software corporation headquartered in Redmond, Washington that
develops, manufactures, licenses, and supports a wide range of products and services related to computing. The company
was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world’s largest software maker measured by
revenues. It is also one of the world’s most valuable company.
HOW IT ALL STARTED??????
Dream of having a PC on every desktop
Bill Gates & Paul Allen.
Intro Microsoft

3. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Mission of Microsoft
“Empower every person and Every
organization on the planet to achieve
more..”
”A computer on every desk, and in every
home. Create experiences that combine
the magic of software with the power of
Internet services Across a world of
devices.”

4. B u s i n e s s S t r a t e g y F o r m u l a t i o n
History of Microsoft
Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PC computer language
program to MITS Computer, Microsoft's first customer.
Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system for its first personal
computer.
Paul Allen resigns as executive vice-president but remains on the board; Jon Shirley is made president of
Microsoft (he later becomes CEO); Microsoft introduces the Microsoft Mouse and Word for MS-DOS
1.00. .
Microsoft and IBM forge a joint development agreement. They launch Windows 1.0 ( first window
based OS) and after that in 1986 Bill gates become youngest billionaire at the age of just 31.
1975
1981
1983
1985
1989

5. B u s i n e s s S t r a t e g y F o r m u l a t i o n
History of Microsoft Cont..
Jon Shirley retires as president and CEO; Michael R. Hallman is promoted in Shirley's place; the company
becomes the first PC software firm to surpass $1 billion of sales in a single year.
The company introduces Windows 3.1. Windows now has over 25 million licensed users.
In this year Microsoft released Windows NT.
In, 1995 Microsoft launch windows 95 and sell 1 million copies in 4 days.
The Justice Department alleges that Microsoft violated a 1994 consent decree concerning licensing the
Windows operating system to computer manufacturers
The U.S. Department of Justice files two antitrust cases against Microsoft, alleging the company had
violated the Sherman Act.
1990
1992
1994
1995
1997
1998

6. B u s i n e s s S t r a t e g y F o r m u l a t i o n
History of Microsoft Cont..
First beta of .NET framework released.
Microsoft Windows XP is released internationally. In 2002, Great plain software is acquired by Microsoft.
Microsoft launches Windows Server.
Microsoft announces a five-country pilot program for Windows XP Starter Edition, a low-cost
introduction to Windows XP designed for first-time desktop PC users in developing technology markets.
MSN launches a new Search service, available in 25 markets and 10 languages. The new MSN Search
service delivers results of greater relevance, instant answers to specific questions, and a collection of
tools that give Internet users greater control in targeting and refining searches.
Windows Vista was released to consumers along with a new version of its Office suite, called Microsoft
Office 2007
2000
2001
2003
2004
2005
2007

7. B u s i n e s s S t r a t e g y F o r m u l a t i o n
History of Microsoft Cont..
Bill gates leaves Microsoft to pursue charity work.
In this year Microsoft released windows 7. Beats all previous records of sales.
For the first time, Apple comes close to Microsoft and becoming the most valuable technology company
in America.
Microsoft launch windows 8 ( for all people ), .NET framework 4.5, Internet Explorer 10 etc.
Windows 8.1 was released to consumers along with Office 2013.
Windows 10 was launched with a vision to have same OS across devices of every typw which are running
on Windows.
2008
2009
2010
2012
2015
2013

8. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft Products

9. Key Strategical Decisions of Microsoft in past:
 Linking with OEMs to charge for OS as per unit they sold instead of
selling them the software once. This move enabled Microsoft to earn
revenue from every unit sold with out any extra distribution or
overhead costs.
 Changing the company’s Model from just “product based” to also
“service based” by offering maintenance and constant upgradation
services.

10. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft Store
C o m p u t e r s
Surface
All-in-ones +
desktops Laptops +
Ultrabook's Accessories
Tablets +
convertibles PC games
Windows
8 Windows 8 Pro
Windows Phone
Windows Phone for AT&T
Windows
Phone for Verizon
Windows Phone for T-Mobile
Office
Office for Windows , Office for
Mac & Office University All
Office apps
Additional software
Visual Studio
Visio Project & Mapping
PC games
X b o x
Xbox One & Xbox 360
Xbox LIVE
Accessories
Computer accessories
Xbox 360 accessories
Windows Phone accessories
PC gaming & Audio accessories

11. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft Competitors

12. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft SWOT Analysis
Weaknesses
Poor acquisitions and investments
Dependence on hardware
manufacturers
Criticism over security flaws
Mature PC markets
Slow to innovate
Opportunities
Cloud based services
Mobile advertising
Mobile device industry
Growth through acquisitions
Threats
Intense competition in software
products
Changing consumer needs and
habits
Open source projects
Potential lawsuits
Strengths
Brand loyalty
Brand reputation
Easy to use software
Strong distribution channels
Robust financial performance
Acquisition of Skype

13. Porter’s Five Force Analysis for Microsoft
• Competitive rivalry or competition (strong force)
• Bargaining power of buyers or customers (moderate force)
• Bargaining power of suppliers (moderate force)
• Threat of substitutes or substitution (weak force)
• Threat of new entrants or new entry (moderate force)

14. I need previous side in this format

15. Competitive rivalry or competition (strong
force)
For Microsoft, the following external factors and their intensities exert
the strong force of competition against the company:
• Moderate switching costs (moderate force)
• High aggressiveness of firms (strong force)
• High diversity of firms (strong force)

16. Bargaining power of buyers or customers
(moderate force)
Microsoft must respond to the moderate force of the bargaining power
of customers, based on the following external factors and their
intensities:
• Low substitute availability (weak force)
• Moderate switching costs (moderate force)
• High quality of information (strong force)

17. Bargaining power of suppliers (moderate force)
The following external factors and their intensities maintain the weak
force of the bargaining power of suppliers on Microsoft Corporation:
• Moderate size of suppliers (moderate force)
• Moderate population of suppliers (moderate force)
• Moderate overall supply (moderate force)

18. Threat of substitutes or substitution (weak force)
In Microsoft’s case, the following external factors and their intensities
impose the weak force of substitution on the business:
• Low performance of substitutes (weak force)
• Low availability of substitutes (weak force)
• Moderate switching costs (moderate force)

19. Threat of new entrants or new entry (moderate
force)
The intensities of external factors that lead to the moderate force of
the threat of new entry against Microsoft are as follows:
• High cost of brand development (weak force)
• Moderate cost of doing business (moderate force)
• Moderate switching costs (moderate force)

20. B u s i n e s s S t r a t e g y F o r m u l a t i o n
Microsoft