Segmentation, Targeting & Positioning - Microsoft - Essay Example

Financial Analysis Five year financial review (Currency in Millions of US Dollars except stock prices) Particulars 2009 Revenue 58427 62484 69943 73723 77849 Gross Profit 46282 50089 54366 56193 57600 Net Income 14569 18760 23150 16978 21863 Growth Income Rate -29.79% 36.36% 35.56% -1.64% 20% Stock Price 27.66 26.71 25.70 30.88 34.30 From the above table we can see that the annual revenue of Microsoft has increased over the years which indicate that the profitability position of the company has also improved. Gross profit of the company has also improved over the years which shows that the company is in stable position in the industry and successful to improve its profitability position continuously. Since it has launched many new operating systems in the past few years thus its revenue and gross profit has also improved. Net income of Microsoft has improved from the year 2009 to 2011 due to increase in total revenue and operating income but in the year 2012 the net income has decreased due to significant increase in income tax expenses and decrease in earnings from operations although the total revenue and gross profit has improved than the previous year. In the year 2013, the net income has increased than the previous year due to decrease in income tax expenses and increase in the earnings from continuing operation and also due to the increment in revenue and gross profit for the year. Income growth was negative for the year 2009 and 2011 due to decrease in net income but otherwise the growth was good for the remaining years. Stock price of the company has decreased from 2009 to 2011 which indicates expectations of investors were not met but after 2011 to 2013 it has increased significantly which indicates investors are gaining confidence in the company. Segmentation, Targeting & Positioning Microsoft has such huge variety of product offering in the market that they have product for almost every type of customer. They are spread across all the continents in the world and reach out to everyone in this century. The reason they can target all types of customers lies in their products and services. They have software, games, browser, and the list goes on. Individuals need purchase safe so purchasing from #1 would appear to be the protected decision. However Microsoft never directed this strength into a solid brand position. They drank excessively of their own cool support and accepted their answers were more focused than they truly were. Being enormous has headed them to being a huge mush of significance, being such a variety of sorts of programming, fittings, administrations, and frameworks they have no brand center. As their predominance has faded, their brand position has flattened to the disgraceful "Im a PC" fight. Yes, there are a few exemptions like the X-Box, their gaming support, yet Id contend that they basically made a Masterbrand with X-Box, with "Microsoft" being dealt with as a lesser endorser brand. I see the Microsoft brand moving to the foundation so more centered brands like Zune, X-Box, and Windows might be correctly positioned versus the rivalry. Product & Services Windows – It is the world most popular operating systems for personal computers and laptops. Microsoft Office – It is their office suite which includes accessibility features that both make it easier for people with disabilities to use it, and, for content creators to make more accessible documents, presentations, and other materials. Internet Explorer is their basic browser which provided with their operating system. It includes accessibility settings to help all users, including those with disabilities, move around the Internet easier, see web pages more clearly, and access information quicker. Xbox 360 – Microsoft is not only known for their business solutions but they are also popular in the gaming platform. They have their own gaming console called Xbox 360 which directly competes with Sony play station. Competitors List of competitors of Microsoft are given below: Google Apple Oracle Google The biggest competitor of Microsoft is none other than the search engine giant Google. Google is a serious threat because not only does it have its hand in multiple markets, it has the ability to jump in and quickly grab significant market share. Gmail, Google’s mail service has become everyone’s favorite now a days and they growing on it with the launch of Google plus, a social networking platform like facebook and twitter. Apart from that they also have their mobile operating system, android which Microsoft is trying to compete with their windows mobile platform.   Apple Microsoft and Apple are very old competitors right from the beginning. Windows is still on more than 90 percent of machines and Safari, Apples Web program, basically has the same piece of the pie as Macintosh workstations – however that line is currently being smeared. Since the iphone has transformed into, well, the iphone. Apple is heading the charge for portable processing. And after that theres the ipad – dont even kick me off on tablets. Apple has succeeded where others, to be specific Microsoft, attempted 10 years back. Apple has opened the entryway for a conceivably gigantic new market, yet Microsoft must step it up when it needs Windows on the most sweltering slab   Oracle Another big competitor of Microsoft is software developer Oracle. They are mainly famous for their Java applications. Along these lines was, as it happens, Sun Microsystems – which Oracle purchased a year ago. Presently Oracle offers programming, as well as a whole line of equipment, too. Oracle’s new motto,"Software. Equipment. Complete," highlights for the endeavor segment the same excuse for why Apples items have overwhelmed the shopper business: fittings in addition to programming, assembled by the same organization, working sumptuously together as a bundle.  Logistics & Distribution The primary channels of distribution are immediate offering through the Internet, through executors and through specific retail stores. All organizations attempt to utilize authority method which serves to guarantee high bargains and after sakes administration. Power, regarding channel administration, and the relating level of control, empowers the channel guide to attain financial points of interest by affecting how merchandise are physically transported and archived. Consequently, thorough distribution methodologies of channel outline, incorporation, and firm positioning all rely on the capability of the organization to either deal with the framework further bolstering their good fortune, decide to fit inside an overarching framework, or configuration their own particular divide framework. Immediate contact with no middle people is utilized by Sun Disk and somewhat by Apple .On the worldwide enclosure; the primary sorts of distribution are the one-level “channel and second level “channel. The point of the recent one is to convey items to the extensive number of little retailers. References Microsoft Corporation. Annual Report 2009. 2009. Web. 21st January 2014. . Read More