Analysis of Microsoft and its Strategic Challenge - Assignment Example

17 December 2009 Analysis of Microsoft and its Strategic Challenge Question The competitive landscape has completely transformed and modernized in the IT sector after the appearance of Internet in 1990. At that time Microsoft launched its own Internet Explorer to capture the new rising web world. The popularity of Internet Explorer had broken all the limits and restrictions. In addition, the Internet Explorer had turned out to be an essential part of the operating systems. Also, the Internet Explorer had captured the whole web explorer market until 2002. However the emergence of software licenses such as GNU GPL has changed the traditional practice of IT business. The open source, free software, and operating systems have become more attractive for lot of businesses. Because they offer IT applications free of charge. In addition they could be modified and restructured. Some effects on the business of Microsoft were also happened due to lot of system security holes those are well managed and handled by the Linux applications and operating systems. The continued development of the web has established the foundations of new web that is acknowledged as the web 2.0. New web 2.0 economy has offered the opportunity to get better online interaction, security, communication and data handling. It has also facilitated in improving the existing business areas by adding new features, services, and facilities in these systems (Wenzel) & (OReilly). Through the emergence of new web, each business has tried to develop and improve the business cycle and tried to better manage the business and organizational resources. In this scenario lot of new business applications came in the market for instance Service 2.0, Enterprise 2.0, and Oracle’s PeopleSoft development and launch in the business market regarding the corporate business management were the main steps toward the shift to deliver the Web 2.0. Microsoft has also struggled to cover these areas and developed a new ERP that is acknowledged as the Microsoft Dynamics. Its latest version is Microsoft Dynamics 5 that is released in 2008 (Microsoft). Microsoft has also effectively tacked the new business models such as software-as-a-service (SaaS) that has offered a new opportunity to customers pay only for the actual use of applications services. In regard of software-as-a-service, Microsoft has tried to facilitate ISVs develop their corporate and businesses by presenting programs as well as tools to hold up the delivery of hosted software. Through linking the ISVs with distribution a channel like that hosting providers as well as telecoms operators produce novel business opportunities (Carraro and Chong). In order to carry and maintain the effective business operations and management Microsoft needs to develop, maintain, and organize the effective technology products in all areas. For example Microsoft needs to pay attention on scenario of the new business, operating systems; webs 2.0 based applications and bring new innovation in these areas. Question 2 Microsoft’s recent entry into the consumer electronics is the evidence of the fact that Microsoft is going to enhance and bring innovation in overall business and corporate structures. Microsofts moves in this regard is an effective step for taking and maintaining the better business and market competitive edge in business market and enhancing the overall business revenue as compared to Microsoft’s competitors. Presently Microsoft has made deals with MTV regarding MSN Videos. Another main step taken by the Microsoft is regarding the TiVo deal that is intended to make certain that TiVo recordings play on new Microsoft Mobile devices. As Microsoft has long-planned policy to change the PC and work device into personal areas of entertainment. In this area Microsoft business aims to demonstrate new business products in all US Consumer electronics show especially in Las Vegas. This will offer the business to attract more people and able to capture more business revenue regarding the home entertainment business market (Beattie) & (microsoft). According to Beattie (2005) Microsoft has new plans to reveal a modern line of PC-as-media-center consumer products in partnership with Intel in coming months (Beattie). As I have perceived the new entry by Microsoft in the user entertainment, digital media and video game industry has been really successful. Microsoft is able to attain the target customer market and new business partners. The main suggestion regarding the Microsoft’s effective market defense and capturing new regional markets is to better market and target the new consumer products. This will be done through the effective analysis of the market and capturing the weak areas of competitors. Question 3 The argument that Gates is a “PC genius and Internet fool” looks appropriate to some extent. The beginning of the web has brought a technological revolution in all the areas of te life and business. In this scenario Microsoft has launched the internet explore that has a continued flourishing history. The main reason behind the comment Gates is a “PC genius and Internet fool” is that he paid more attention toward the PC based business market and less frequent to web based platforms. Another reason is that Microsoft was is a web based business and companies those were born on the web have attained good reputation and become the main online business holders. However Gates has also taken some effective steps regarding the web based business, for instance in 1995 he has established new web services with name of MSN that was aimed at offering the services such as Web-based email, and other related services. Then in 1998 Microsoft launched the MSN search engine MSN using a third-party product for its core developed net was also a major step in business of Microsoft. In addition, Microsoft is extensively huge as compared to Google and Yahoo however the circle of the business and market products of the Microsoft are really big for instance operating systems, MS Office, and other applications. Furthermore, web based businesses such as Yahoo and Google are purely web oriented. The huge management of the business like Microsoft is also a great challenge. At the present, Microsoft has also taken new steps toward the web based services and search engines. The lunch of the new search engine BING is also associated with it. Therefore, we can say that Microsoft would flourish on web business. Question 4 Both, the Microsoft and Apple IT Company are big competitors of each other. They both effort to perform better than other and it is continued since 30 years. So each business is trying to do better than other. It is clear to all that Apple is performing much efficiently in all areas of business that it owns. Apple is doing a great job in laptops, high end computers, and desktops and selling effectively by a high profit margin. In addition, recently Apple has established its move in business of the mobile technology. In this point of view Apple’s mobile PC and desktop PC are well liked by people. The recent flourishing example of the Apple mobile system is iPhone. That is continuously growing and offering Apple business a distinctive position in the market place. On the other hand, the business of Microsoft seems restricted to applications and systems software for network and personal computers. In addition, the Microsoft has also taken some new steps to enter into the commoner electronic markets. The main concentration of Microsoft is still on the system software applications such as Windows and application software for instance MS Office. Another move of Microsoft is toward the business of software industry and development of some ERP and DSS systems. Therefore we can conclude that both Microsoft and Apple corporations are presently moving in diverse direction, Apple in Mobile technology and Microsoft still in applications development (Miller). Question 5 Mobility and mobile technology are emerging more rapidly and offering better personal and domestic advantages. Microsoft has tried to capture this market since 1998 by the development of its initial Windows Mobile platform. The evaluation in this scenario is still continued and presently we have more effective and advanced versions of the MS Mobile Windows. However, as compared to Apple and Nokia and other Mobile technology system developers Microsoft is still behind to capture the potential business market. In this age of mobile technology Microsoft needs to take some effective actions to capture the overall mobile business market. This could be done by offering better user interface, easy to use system and innovative features at the similar place. The main intention is to offer new and better features as compared to other technologies. All these, steps will offer the Microsoft to have better business in this mobility sector also. Bibliography Beattie, Russell. "Microsofts Consumer Electronics Endgame." 2005. Russellbeattie.com. 18 December 2009 . Carraro, Gianpaolo and Fred Chong. "Software as a Service (SaaS): An Enterprise Perspective." 2006. 18 December 2009 . Hanif. "Bill Gates: PC Genius, Internet Fool." 2008. 18 December 2009 . microsoft. "Innovative Universal Remote Control Extends Power of PC to Your Living Room ." 2009. 18 December 2009 . Microsoft. "Microsoft Dynamics NAV 5.0 Quick Reference Guide; INSIGHT." 2009. Microsoft.com. 17 December 2009 . Miller, Ron. "Microsoft and Apple: A Tale of Two Earnings Report ." 2009. 18 December 2009 . OReilly, Tim. "What Is Web 2.0." 2005. Design Patterns and Business Models for the Next Generation of Software. 13 12 2009 . Wenzel, Elsa. Web 2.0 Applications. 17 05 2006. 18 December 2009 . Read More