Republic of the Philippines

SURIGAO DEL SUR STATE UNIVERSITY

Tandag City, Surigao del Sur

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I. Facts of the Case

 Microsoft is the world’s most successful software company. Today,

Microsoft is the fifth most valuable company in the world and ha a

brand value of $61.2 billing. It is being founded by Bill Gates and Paul

Allen in 1975, with the original mission of having computer on every

desk and in every home.

 Microsoft offers a wide range of software, mobile and home

entertainment products. Its most profitable products continue to be

Microsoft Windows and Microsoft Office, which bring in approximately

80% of its $86 billion in annual revenue.

II. The Problem

1. Main Problem

 It all started when Microsoft created too many product line in order to

overtake Netscape which result to Controversy and some company

perceived they are practicing monopoly, which led to antitrust charges

in 1998 and numerous lawsuits based on its marketing tactics.

2. Immediate Problem

 Microsoft experienced stock price tumbled by more than $40 a share.

During this time, Apple made a strong comeback with consumer friendly

products like Mac computers, ipods and iphones. Though, Microsoft

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SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

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launched the Vista system, it was plagued by bugs and problems and the

company stock and image continued to slide.

III. Strategic Analysis (SWOT analysis)

Strengths

 Microsoft is very creative in making slogan to promote and advertise their

product. Communicating that Microsoft could help empower company and

consumer alike.

 Microsoft perceived to be on top compared with other companies selling

the same kind of products. Though they experienced different testing

when it comes to introducing new products but still they’re finding a way to

still build up a brand image.

 They have connection with their customers in order for them to provide

their needs.

Weaknesses

 Microsoft’s were too much aggressive when in it comes in introducing new

product. It becomes a negative aspect and a weakness when such is

followed. Trying to monopolize such a big industry will attract competitors

to unified and do their best to get you out of the competition.

 Republic of the Philippines
SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

GRADUATE SCHOOL

 Microsoft products though they claimed that they have the best products

yet it need frequent upgrade of the software.

Opportunity

 With the aide of Microsoft mission, they could continue to create a more

innovative and useful desktop that everyone can enjoy.

 Microsoft could partner with another company that offers the same product

and services

 Microsoft can use its innovative campaign ad in order to advertised more

of its product and reach more of its customer by means of its message.

Threats

 Mac is the most competitor closed to Microsoft, as we all know Mac

computers provide virus prone computers. This might be one of the major

threat if Microsoft will not do something about what Mac is offering.

 Microsoft should deal with a vision that could bring them some special

results, the company should invest more on acquiring applications that

suited to consumers need and wants. Consumers convenient will bring

company’s profit.

IV. Alternative Courses of Action

 Continue to engage in magazine advertising

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SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

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Pros

1. It reach many customers

2. The possibility of receiving endorsement

Cons

1. It’s quite expensive and costly.

2. There is a tendency that customers might not buy the magazine

cause it might be an additional costs for them.

 Continuous innovations for products that are most profitable

Pros

1. It can boost market share

2. Generations now a days tend to buy more products that are

innovative and suits to what is trending in the market.

Cons

1. Customer expectation especially with the new generation is

quite challenging to satisfy.

2. Innovative products that does not undergo a thorough process

might led to rejection and most cases a possibility of failure.

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SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

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 Acquiring more applications potentially useful to consumers and

innovative system to sustain momentum

Pros

1. Consumers will patronized more products that are useful in daily

activities

2. It attracts consumers that lead them to be more excited about

the new products and services which they previously impressed

them

Cons

1. Acquiring more application is costly

2. Time consuming, costly.

V. Recommendation

 Microsoft should develop further their products like Microsoft Windows and

MS Office to be more profitable and can stand with the competition. Its

relevance to consumers is one of the factors why they still continue

patronizing the products. Make more campaign ads that will entice more of

the consumer emotion, which will make them feel more important and

create that feeling that without Microsoft they can’t leave without it.

VI. Description of the Future State

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SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

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 Five (5) years from now, Microsoft can still sustain its consistency of

quality products, more innovative software and high tech desktop that the

customer can enjoy. They will lead our future technologies and dominate

the market with sustainable competitive advantage.

 Republic of the Philippines
SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

GRADUATE SCHOOL

Microsoft

A Case Study
Presented to

Dr. Rizza Mae C. Azarcon

Marketing Management

By:

CHERRY MAE I. POSTRADO

March 2019
 Republic of the Philippines
SURIGAO DEL SUR STATE UNIVERSITY
Tandag City, Surigao del Sur

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