STRATEGIC ANALYSIS PROJECT

Microsoft Corporation is considered a major technological giant in the world and has managed to amass a lot of profits and continues to come up with innovative products for its many clients.  Th technological industry continues to be highly competitive and a lot of companies struggle to acquire and retain clients. For a company to survive in this industry, they have to be innovative and apply various strategies so that to achieve the status of Microsoft.  The company derives it competitive advantage from innovation which is supported by research and development activities. Increasing working capital is a strong basis for Microsoft innovation and thus, competitiveness which has enabled it to overcome handles in the mobile phone market (Bi, Xiao, Shi, Gan & Che, 2012).  The major competitors for Microsoft Corporation include the biggest and prominent technology firms in this industry. Apple and Google continue to pose a lot of competition for the firm which is informed by the fact that Microsoft is diversified and offers many kinds of products or services provided by these companies.  These firms invest a lot in research and development which provides a common ground for them, since this is one aspect of the market that they have to embrace. The software is the main focus of the firm and although the company is diversifying in other areas, this is it major emphasis.  The Windows operating system is the major brand that sets the company apart from the rest. This software product faces stiff competition from operating systems provided by the other two companies which includes Android for Google and the iOS for apple since they compete directly (Bi et. al 2012). This means that competition is highly intensive as each company endeavors o establish and maintain its own market niche.

The technological industry continues to attract a lot of investment in strategic research and development. The growth in market for mobile phones and specifically the Smartphone is major determinant in the collection of revenue for the aforementioned firms. This is due to the ever-expanding market which presents growth opportunities for Microsoft and its bitter rivals. This is what brings about the kind of competition experienced in the Information and Technology market as seen in the changes in marketing strategies which ranges from product prices, features and the physical appearance of mobile smart phones.  Innovation and diversification has continued to inform market leadership in this industry and this has seen Google continue being a market leader (Microsoft Corporation,2015). This can be attributed to the company’s diversification in products and services it provides. However, Microsoft competitive advantage is still impressive despite the many challenges it faces in trying to penetrate the mobile phone market.    A CPM matrix shows that Google is the leader in the market with its brand Android having biggest rating in brand loyalty (Jurevicius,2013).

A VRIO analysis involves a thorough assessment of various capabilities and resources of a firm .Internal environment of an organization refer to its internal capabilities and resources activities which provide the core competences to the firm so that it achieves competitive advantage and therefore earn returns which are above average (Bencsik, 2016).)  A VRIO analysis of Microsoft Inc. indicates that the firm competitive advantage stems majorly from its innovation, brand and a constant customer loyalty. A combination o the three elements enhances this competitiveness. Innovation is the major aspect that makes the company to have a competitive capability in constantly changing market (Microsoft Corporation, 2015). The company prioritizes innovation which is enabled by a strong activity in research and development which creates a strong competitive edge and thus helps in building band equity. The major area of research for Microsoft Incl. includes theory and algorithms, development of hardware and increased interaction between computer and human.  Other area of research includes machine learning, intelligence and adaptation, networking, cloud computing and smart connecting devices. The company also has strong investment in emerging technologies which spans fro, communication, organization and access of information which are the major focus of innovation efforts.  Microsoft Research Group is the major organ where new technology efforts are explored. Innovation is helped by intellectual property which is very strong and highly important for development of product portfolio for the company (Microsoft Corporation,2015).

A patent portfolio that is strong result to exclusivity of market in proprietary technology and this gives a competitive edge to the company. Its success is thus dependent on the ability to establish and keep the technology’s proprietary nature by way of patent process. The firm’s innovative products are commonly user friendly and involve services which cover a means to organizing and store information in a computer and an easier access of new information (Bi et. al 2012).  The efficient integration of hardware and software has enabled the firm to continue being competitive given that these features develop strong customer loyalty.  The company also has an efficient marketing and distribution network. The distribution network involves three main channels which include OEMs, Online, distributors and resellers.  Innovation is, therefore, the major capability whose impact is experienced in the whole industry (Microsoft Corporation, 2015).  

References

Bencsik, A. (2016). Knowledge Management Initiatives and Strategies in Small and Medium Enterprises. Hershey: IGI Global. 185

Microsoft Corporation (2015). Financial and Strategic Analysis Review. Retrieved from: http://callisto.ggsrv.com/imgsrv/FastFetch/UBER1/68489_GDTC22599FSA

Bi, P., Xiao B., Shi,W., Gan, R., Che,J.(2012).Microsoft. Case Synopsis. Retrieved from: http://www.sfu.ca/~sheppard/478/syn/1123/SynopsisE.pdf