Model Analysis

Presented By: Areesha Shakeel (fa18-baf-002)

MICROSOFT

Analysis of Microsoft through following models:

 Porter’s five forces model

 Case study analysis
 SWOT analysis
 PEST analysis
 Porter’s generic strategies
CONT..
 Ansoff matrix
 BCG matrix
 Operation strategies
PORTER’S FIVE FORCES
MODEL:
 Threat of new entrants (moderate force)
 Bargaining power of suppliers (moderate
force)
 Bargaining power of buyers (moderate force)
 Threat of substitute product (weak force)
 Competitive rivalry (strong force)
CASE STUDY ANALYSIS:
 Key issues:
 Low productivity
 Management’s poor performance
 Rare production of flagship products
 Root cause of these problems:
 Advancement in technology
 Solution:
 Hiring innovative workforce
 Streamlining the management
 SWOT ANALYSIS:
 Opportunities:
 Strengths:  Nokia acquisition
 Market leader in client operating  Expanding mobile market
system  SkyDrive for cloud storage
 Large client base  Threats:
 MS suit
 Google drive
 Linux and MAC OS
 Global market
 Weaknesses:
 Windows 8 negative user response
 Lack of mobile market
 Dissatisfaction for mobile
products
PEST ANALYSIS:

 Political:  Social:
 Issues with china on how  Little focus on mobile phones
Microsoft sells and distributes  Technological:
its software  Apple and Google major rivals
 EU hit Microsoft with 730
million dollars fine
 Economic:
 Still recovering from the
financial crisis of 2007
PORTER’S GENERIC
STRATEGIES:

 Mixture of differentiation and cost leadership

 Demo versions for both individuals and
organizations
 Low prices of software
ANSOFF MATRIX:
 Microsoft uses all four in an integrated way:-
 Market penetration: 116 stores
 Product development: 13% increase in R&D in
2018
 New market: availability of HoloLens in
additional 29 markets
 Diversification: cloud business in 2006
BCG MATRIX:

 Computing and gaming segment: cash cow

category
 Example: Xbox 1 and Xbox 360
OPERATION
STRATEGIES:
 Microsoft uses horizontal integration.
 Example: acquisition of Skype , Microsoft also
has a small stake in Facebook.
THANK YOU