Global strategy & competitivness - Essay Example

It is therefore a whole package affair where ingenuity in attaining competitive edge is a necessity. This paper will delve on Microsoft Corporation in regards to the above stated international business strategies while making comparison with its competitor: Google. Microsoft Corporation Core competencies of any firm need to offer real prospects of a wider market, contribute heavily towards the end product and above all, they should be hard to imitate. Leveraging on core competencies has become a contemporary strategic issue for firms especially those that offer technological products.

However, a firm must identify these competences before capitalizing on them. Microsoft started by dividing its technological products into separate families. Some of the families include Office, Windows and MSN among others. The company then maps out these core competencies to fit its capabilities in delivering high quality and consumer friendly products. The major core competencies for Microsoft are mainly those that ultimately lead to high revenue generation and improved product development such as licensing, advanced infrastructure and software development among others (Hitt, Ireland & Hoskisson 128).

The company labels the above competences as Microsoft Competencies. These competencies assist the customers in differentiating the available skills and expertise. In developing core competences a firm should be enlightened on customer needs in the individual markets they serve especially in case of international companies. Microsoft uses the competencies to bring together all its business partners and their collaborative activities. Microsoft products offer a high level of connection for the customers.

They connect the customers to many choices for example in business management and operation e.g. through Office and a range of operating systems. The products also come with guaranteed flexibility where customers are able to make certain products suit their particular needs for example as pertaining to software usage. It is also important to note that for these aspects to remain as core competences for this long, Microsoft has invested a great deal over the years in research and development (R&D).

Through R&D, the products become more sophisticated while considering their functionality in the wider global market (Hitt, Ireland & Hoskisson 209). This is the same factor that renders Microsoft products difficult to imitate. One notable characteristic in utilizing core competencies is that they do not wear out in respect to their importance but in turn are enhanced for attainment of higher competitive advantage. Microsoft Product Differentiation Based on Markets Operations on a global scale prove tricky, time consuming and resource exhausting.

Microsoft has adopted a differentiation strategy so as to gain competitive advantage over its competitors in United Arab Emirates. The main differentiation of Microsoft products lies in the language and product customization to fit Arabic speaking customers. Microsoft products for example the Office Suite is compatible with Arabic language and even culture. Features such as thesaurus and grammar checker have been incorporated in Arabic which facilitates the user-friendly aspect of Microsoft’s products not only in the UAE but also in the rest of the Arab World (Ireland, Hoskisson and Hitt 2008).