Customer Relationship Management in Microsoft Company - Case Study Example

relationship management in Microsoft Company The marketing strengths of Microsoft Microsoft Companyproduces and distributes software products globally for computer applications. The products are compatible for use in different types of computers, and mobile phones with the company’s rate of product development serving to ease market competence and ensuring success ahead of other software competitors. The company targets all global clients equally, ranging from individual to computer producers who need to incorporate the company’s software for use in running the machines and delivering the intended jobs adequately. The customer relationship management (CRM) plays an integral role in ensuring that companies operating in the information technology line of business redirect all their resources to production, processing, pricing, and promotion of the companies’ products to acquire the set objectives at the long run (Ward 43). The process further stimulates plans to ensure prompt delivery of technologically improved products in order to deliver satisfaction to the consumers. At this point, Microsoft Inc. thrives as the industry’s most successful business entity in production of software applications that coincide with the prevailing market needs and lead to satisfaction by serving to the desired effect. Microsoft Dynamics and the “go-to-market” resolution is a precise approach to ensuring customer cohesion as the company focuses upon customer market segmentation in order to be certain of the production needs. Further, the company establishes on its various product category to ascertain on the mode of developing new products. However, laxity does not prevail thereafter as the company’s management intrigues into ascertaining different prices for its different product specifications and in accordance to the market variables. The company unleashed Microsoft, Fortune 500 as a new resolution to ensuring that the company’s production line would produce a wider range of products including personal computers and mobile phones (Gross, Akaiwa, and Nordquist 45). Mainly, the company relates its performances into ensuring positive outcomes in its marketing and sales forecasts, and ascertaining that all services reflect to the needs of the consumer. Since Microsoft’s software products are the most reliable for use in personal computers, the company rests advantaged to competing at a broad perspective following the current venture in production of mobile phones and computer chips, for example, the windows phone. The strengths prevail that the company upholds importance of its products and focuses on developing its hardware devices in order to suppress the threat of counterfeiting and competition. The continuous update of the software programs inclines the company to luring the clientele group to the understanding that it is the most competent organization and aims at delivering value and satisfaction (Ward 48). Research and development play an important role in ensuring that the company engages on a continuous product development process which of lately led to the implementation of competitive windows products, for example, the continuous updates on windows software, the development of windows phone, and Xbox software among other products. The pricing approach for Microsoft products Microsoft Company’s marketing team ensures that the prices set for its products coincide with the technology used in the products. Therefore, its wide range of software products reflect on the use of different technological approaches thus; the prices established therein denote on the prevailing variations (Weiss 55). For instance, the Microsoft Windows 8 Pro sells in the global market at a price of $199.99 dollars whereas the previous innovation, the Microsoft Windows 7 Professional sells at $74.99. Further, research implements that Microsoft Office 2010 Professional sells at $254.99 in the global market (Gross, Akaiwa, and Nordquist 48). The pricing approaches with the values ending with a 0.99 dollar difference implies on the application of disguised pricing approach for the company’s products. This approach deceives customers to make purchases and develop interest on the products with the notion that the prevailing differential value marks a higher margin (Ward 63). For example, at $199.99 the customer would establish that the software sells within the hundredth dollar value and not the immediate $200 value. Through the pricing variations on the software products in accordance to the latest and former developments, the product prices of the software seem to differ. Therefore, the pricing department of the Microsoft Company practices price skimming approach whereby the company aims to reach the high-end markets with its modern software applications. Such an approach enables the company to yield the set profits by selling a minimum output at high prices to yield supernormal profits at the short run (Weiss 56). The approach ensures that the company engages on a continuous price lessening process to eventually reach the needs of the entire global market segments with customer-based pricing mechanism. During the customer-based and penetrative pricing mechanisms, Microsoft markets its products to low-end markets and ensures that the cost of innovation and application of the marketing mix variables coincide are profitably recovered upon delivery of satisfaction and value to the consumers. The cohesive pricing approaches serve to profitably yield the company’s desired outcomes. Arguably, the Windows 8 Pro sells at a lower cost compared to Office 2010 professional at $199.99 and $254.99 respectively. The price variations ascertain that Microsoft concentrates on denoting success upon its latest development compared to former developments. However, the pricing differentiation does not harm the company’s profitability as the company eventually yields the set profits over the production and development costs. Microsoft Company might further stipulate such price variations as a mode of accruing and increasing the rate of demand from the clientele community (Ward 73). The approach further serves to increase customer relations and loyalty as they perceive that the price approaches seek to ensure that all markets enjoy equated provisions of the products despite the financial, economic, and lifestyle differences. Two companies that use Microsoft’s products Dell Inc. Dell is among the global personal computer manufacturers and the company markets directly to the customer groups. The company targets the low-end consumer markets to sell a large volume of its products competitively despite the prevailing competition in the personal computer market. The company strives to amass a profitable market share, which results from serving consumers in accordance to their specifications and needs, ahead of competitors and at a profitable rate. The company uses genuine and lowly priced assembling materials to produce durable and affordable computers. Dell applies the use of latest windows software applications in order to win the clientele community effectively. By using Microsoft software products, the company nurtures the capabilities to accrue the set benefits as Microsoft products are affordable and will not affect the products’ market prices (Gross, Akaiwa, and Nordquist 55). The company maintains that Microsoft Dynamics CRM is a reliable partner in the computer industry as its authentic assurance on the products’ quality delivers the stipulated values to the customers. Dell Company enjoys the high range of product choice from the available offers and rests assured that innovations are on a continuous edge. Revlon Company The company operates in the fashion enterprise and owns branches and subsidiaries in over 100 countries thus implicating on competitive market share at a global perspective. The company ascertains to its consumers that it shall always offer up to date products by incorporating information technology approaches to its marketing strategies. Revlon reflects that the global competition is on a continuous increase and the only method of ascertaining market share increase and profitability is through the application of effective technologies. Revlon Company establishes technology as the most appropriate resolution to ensuring the desired competence and integrates it to the use of Microsoft software applications (Ward 78). Since the Microsoft Dynamics CRM ascertains that Microsoft products contain unmatched values, Revlon upholds to the assurance plan and adheres to the products as integral and the key to success. The future of Microsoft’s products The global use of information technology as a mode of communication is integral to the diversified investments by multinational corporations. Similarly, growth in information technology affects globalization of a common human culture and thereby, people seek common products to satisfy their needs. Microsoft Company understands the continued rate of change in technology and the threats that the products may befall after falling a victim of inevitable future changes. Mainly, the market comprises negative forces that may at a given point halt performance and market competence of the product, as the product loses the market share, perceived customer value, and the desired profitability. Despite Microsoft Company being a market leader in the production of software, the Microsoft Dynamics CRM ensures that proper and regulatory approaches are set as controllable to ensure that its operations aim at achieving the desired success and competence in the global market (Weiss 59). Therefore, company ascertains these positive factors through strategic approach to the external environmental forces, the available resources, and product differentiation amongst other variables. Microsoft Dynamics CRM adheres to a criterion whereby the product development and innovative approach sets the company ahead of competitors in the global market. The innovation team engages on production of updated software in accordance to the customer needs and preferences thereby ensuring that the products are sellable in the market. For example, the improvements made on windows software enable customers to derive increased benefits as each new product contains added characteristics thereby ensuring added value. Through these developments, Microsoft Company remains realistic of the accruable market share and an ascertained future. The company’s culture is to ensure that its products serve to the best value of the global consumers thus winning the desired loyalty and diminishing the level of competition whilst increasing its global share profitably (Gross, Akaiwa, and Nordquist 67). Technology serves as an intrinsic factor of success for Microsoft products thus the customer relationship management in the company emphasizes on a continuous progression, research and development approaches to produce various products for use in the consumer markets (Shelly, and Vermaat 116). Future for the Microsoft Company rests assured and positive as the CRM evaluates on the customer preferences and establishes that it would accrue the desired benefits by producing mobile phones and other technological gadgets to diversify into other niche market segments, and yield the desired profits. The company ensures aggressiveness in its products with the windows phone comprising of more attributes to compete with the Apple iPhone. Given that Microsoft produces most of the software applications used by mobile phone and computer manufacturers, the new strategic approach to produce and market products in accordance to the global consumer increases competition and profitability. The global consumer perceives that the company’s new hardware products are ideal and aim at satisfactorily serving their needs thus; chances are that the hardware market segment for Microsoft products is equally on the increase (Weiss 65). Therefore, Microsoft Dynamics CRM ascertains a guaranteed and profitable future as the products accrue the desired market segments, and at the stipulated prices to yield the desired profits. Product differentiation serves as integral to the company’s success as different people in the global society may reflect different perceptions for the products. The product development team developed the Xbox to suppress Apple company iPhone with the ideology that it would target the high-end clientele with the improved products (Shelly, and Vermaat 118). The approach has bore credibility as sales continually increase despite the aggression of competitors to suppress the new market entrant, Microsoft Company. At this point, the products’ future is ascertained as the company’s software ensures that the hardware products positively suppress the needs as they comprise of the latest and most improved software applications ahead of the competitors’ products. Lastly, the product compatibility and pricing approaches lure and accrue loyalty upon the global clients as they perceive that the products serve the intended purposes (Weiss 88). Therefore, Microsoft Dynamics serves to increase the chances of yielding success at a future perspective and perceives that it would become a global market in the Smartphone market segment. Prospects for new technological approaches in Microsoft Company The company’s mission is to profitably serve the global markets with ideal software applications to serve the desired needs to the fullest. Since Microsoft dominates the global market share of software applications, it realizes that diversification of investment directed to the same market segment would be injurious to the resources as it would not accrue the desired benefits accordingly. Currently, the global market for software may reflect a lesser growth compared to the hardware market share. Therefore, Microsoft Dynamics CRM resolves to the implementation of technologically competent products to serve the global clientele across all dimensions (Gross, Akaiwa, and Nordquist 69). Microsoft’s mission statement stipulates that all its undertakings target to serving clients to the optimum point to eventually accrue the desired benefits. Therefore, the company ascertains importance of all able clients in the society and establishes that the demographic, economic, lifestyle and political differences should not serve to inhibit the desired outcomes. Subsequently, the CRM denotes that the prevailing differences should serve as opportunities rather than threats to the company thus; the product development team should engage on product differentiation to develop actual products for the different consumer groups. The differences in demand for similar software products coerce the company’s research and development teams to endeavor in product customization to suit the different clientele needs. For instance, accessibility and assistive options serve as integral in ensuring the prospective clients acquire the beneficial variables of the products (Shelly, and Vermaat 124). The management analyses and establishes proper technological resolutions to suppress the barriers of language and other social vices by producing software with a wide range of product attributes. Currently, Microsoft differentiates all the products in the product line including the windows phone, Xbox, and windows office professional in accordance to the targeted clients. Microsoft Dynamics plans to use new technologies and expand into new markets The CRM group to the Microsoft Inc. establishes procedural approaches to new technologies in order to suppress the threat of competition that threatens the global market share. Technological changes seem to redirecting from a situation of stagnation to a situation of continued acceleration thus; the information technology software manufacturer should ensure prompt researches and surveys to ascertain that the products target to deliver the desired benefits over those of the competitors. Microsoft Dynamics CRM assessed the evolving needs in technology and ascertained that programs would serve a larger client group after differentiation (Shelly, and Vermaat 128). Therefore, the windows 8 pro was differentiated into touch series for touch screen gadgets and other applications followed the successful suit. Further, office 2010 and windows 7 software applications have inbuilt characteristics including voice recognition, and accessibility checker, and the “hear text read aloud with mini translator” characteristics to ensure that not a specific clientele group is left out due to inabilities. Microsoft Company understands that the global society is salient to all accruable benefits. Therefore, the company seeks to develop products that will cater to increase demand and profitability after offering value and satisfaction to the clients. The fact that Microsoft targets the whole clientele markets including the disabled, ascertainments are that it resolves to use the approach in establishing new market segments (Weiss 115). Further, the fact that Microsoft diversified to development of windows phone among other gadgets denotes that the company targets broaden its market segments and venture in new markets. Works Cited Gross, Debra, Frank Akaiwa, and Karleen Nordquist. Succeeding in Business with Microsoft Excel 2010: A Problem-Solving Approach. Australia: Course Technology Cengage Learning, 2011. Print. Shelly, Gary B, and Misty Vermaat. Discovering Computers & Microsoft Office 2010: A Fundamental Combined Approach. Boston, MA: Course Technology/Cengage Learning, 2012. Print. Ward, Peter. Microsoft Sharepoint for Business Executives: Q&a Handbook. Birmingham: Packt Publishing, 2012. Internet resource. Weiss, Joseph W. Business Ethics: A Stakeholders and Issues Management Approach. Australia: South-Western Cengage Learning, 2009. Print. Read More