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The study has been based on the information presented by Hitt, Ireland and Hoskisson (2013) in the Microsoft case study. The paper has covered issues like current product portfolio and business background in order to prepare the basal plain for further strategic analysis. Analyzing the current business strategy of Microsoft has been done in the paper in order to find strength and loopholes in the existing business portfolio of the company in discussion. In the later part of the paper, the study has analyzed the supplier relationship and distribution channel strength of Microsoft in order to understand the external aspect of core competencies of Microsoft. Understanding key strategic challenges and issues faced by Microsoft is being a pertinent aspect of this paper. After analyzing resources and business portfolio of Microsoft, the study has detailed core competence/competitive advantages of the company. In the last part, the study has suggested strategic recommendation which could have been used by Microsoft to compete with its present business rivals and achieve sustainable competitive advantage. ...
Using core competency model proposed by Prahalad and Hamel (1990) will not only help the study to analyze pertinent aspects of Microsoft case study but also help test the applicability of the core competency concept in context modern business challenges. Company Background According to Hitt, Ireland and Hoskisson (2013), Microsoft Corp was established by Bill Gates and Paul Allen in the year

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1975. First product of the company was Altair 8800 and they entered in computer industry through the partnership with IBM for providing MS-DOS operating system and BASIC software for all PCs of IBM (Hitt, Ireland and Hoskisson, 2013). At present, Steve Ballmer is the president and CEO of the company. Product portfolio of Microsoft includes Business Solutions segment, Xbox Game Console and Entertainment segment, online service divisions, server and tools segment, Windows and Windows live segment etc. Microsoft is market leader in the field of operating software, business solutions, Game Console and Entertainment segment while the market share of the company is decreasing in the online service segment (Hitt, Ireland and Hoskisson, 2013). Consideration of the case study reveals the fact that Microsoft is basically stuck in the middle because the company has not entered in the smart devices technology field while competitors like Google, Samsung and Apple already entered in the field of modern technology segment. Current strategy Microsoft currently uses including innovation through strategic acquisitions and alliance, coordinated internal development and a strong distribution channel. Innovation In today's business world, organizations need more than just good products and services to survive, without innovation;
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Strategic planning report Of Microsoft Report group: YANG HAN Yurong Huang 110038521 Executive Summary In this paper, the researcher will shed light on business portfolio related strategic issues of Microsoft in context to strategic management theories like competitive advantage, core competency, resource based view (RBV) etc…
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