Microsoft Corporation &

Customers
 Source: Survey 2002
Microsoft Leader Ship Position Internet Explorer Usage

(In and Around Year 2000)

IE Users

Other Browsers
Internet Explorer Usage 95% (Firefox,Yahoo)

95%
MS Excel , Word 96%

Windows Operating System 92%

Source:Survey 20000
Operating System Usage Office Apps (Market Share)
4%

MS Excel & Word

Windows
Other OS Other Office Components
(Like Linux)

96%
Various Sources
Latest Updates: Microsoft Presently Operates through 5 Divisions
and they are as follows

Division Principal Products and Services Competition

Commercial software products, Alternative OS
provided by Apple and Google,Windows
Services software and applications, including
SkyDrive and Outlook.com, compete with
Windows operating system; Windows Services similar software and service products from
suite of applications and web services, including Apple,Google, Yahoo!, and a wide array of
Windows Division Outlook.com and SkyDrive; Surface RT and Pro websites and portals that provide
devices; communication and sharing tools and services.
Surface Pro and RT devices and microsoft PC
accessories face competition from computer,
tablet, and other hardware manufacturers,
many of which are also current or potential
partners and customers.
Latest Updates: Continued

Division Principal Products and Services Competition

Server and Tools

Server and Tools develops

and markets server
software, software
Windows Server operating systems; Windows Vertically integrated computer
developer tools, cloud-
Azure; Microsoft SQL Server; Windows Intune; manufacturers such as Hewlett-
based services, and
Windows Embedded; Visual Studio; System Packard, IBM, and Oracle offer their
solutions that are designed
Center products; Microsoft Consulting own versions of the Unix operating
to make information
Services; and Premier product support system preinstalled on server
technology professionals
services. hardware.
and developers and their
systems more productive
and efficient
Latest Updates: Continued

Division Principal Products and Services: Competition

OSD
OSD competes with Google and a
wide array of websites and portals
Bing; Bing Ads; and MSN.
Online Services Division that provide content and online
offerings to end users.

MBD
Microsoft Office; Microsoft Exchange;
Microsoft SharePoint; Microsoft Lync;
Competitors to Office include
Yammer; Microsoft Office Project and Office
software application vendors such
Visio; Microsoft Dynamics ERP and Dynamics
as Adobe, Apple, Cisco, Google,
CRM; Microsoft Office 365, which is an online
Microsoft Business Division IBM, Oracle, SAP, and numerous
services offering of Microsoft Office,
Web-based competitors as well as
Exchange, SharePoint, Lync, and Microsoft
local application developers in Asia
Office Web Apps, which are the online
and Europe.
companions to Microsoft Word, Excel,
PowerPoint, and OneNote.
Latest Updates: Continued

Division Principal Products and Services Competition

Windows Phone faces competition

primarily from Apple, Google, and
Blackberry. Skype competes
primarily with Apple and Google,
Xbox 360 gaming and entertainment console, which offer a selection of instant
Entertainment & Business Kinect for Xbox 360, Xbox 360 video games, messaging, voice, and video
Division Xbox 360 accessories; Xbox LIVE; Skype; and communication products.
Windows Phone. Xbox gaming and entertainment
business competes with console
platforms from Nintendo and Sony,
both of which have a large,
established base of customers.
 CONS

Brain drain. Microsoft has had various departures of top executives. Departure of Bob
Muglia, president of the company’s Server and Tools Business division. Unfortunately,
Microsoft executives are seeing better opportunities from exciting companies like
Facebook, Google and Apple.

Lack of focus. With huge cash flows, Microsoft has been aggressive in investing in
new businesses. The problem is that there seems to be few synergies. Should
Microsoft really have the Xbox or its Bing search engine? Could these far-flung
operations mean distraction for management? If anything, the best approach may be
to spin off some of these businesses.

Threats. Cash-cow businesses are always fat targets for competitors. While Microsoft
has done a good job at protecting its franchises, there are definitely major
threats. Google is making inroads with its own Office-like productivity applications, for
instance. But perhaps the most vulnerable division is Windows. Let’s face it — there is a
move toward smartphones and tablets. Yet Windows Phone 7 platform is a distant
laggard when compared to Apple’s iOS and Google’s Android. The company did recently
struck a deal with Nokia, but unfortunately, that’s a partnership with another company
that has had a poor performance in the smartphone and tablet markets.
PROS

Cash machine. An Operational Cash Machine Consider that from 2008 to 2010,
Microsoft had more than $64 billion in operating cash flows.

Franchise businesses. Microsoft has a set of blockbuster business

segments. They include Windows, Office, the Xbox and the server division. For
example, Windows 7 is the fastest-growing operating system in history and has
already sold over 300 million licenses. Also, the Kinect gaming system has been a
big hit, with 8 million of the devices sold in the company’s most recent quarter.

The cloud. This is a megatrend in technology. Essentially, cloud technology uses the
Internet to provide business applications. It tends to be cheaper and more
productive. The good news is that Microsoft has the infrastructure, developer
network and software to benefit from the growth.