Microsoft Diversification Strategy Define the essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

Thirdly there is the broader dynamic of how social computing is completely re-ordering the competitive dynamics of the two sectors that comprise this division as well.

a. Determine the extent to which Microsoft competes with other companies in its industry by assessing the levels of market commonality and resources similarity for each major competitor.

Microsoft's levels of commonality and resources similarity with other competitors are relegated to those companies who have the ability to scale enterprise-wide with systems, whether those enterprises are companies or state, regional or national governments. The future of Microsoft's competitive strength is in the.NET platform and its scalability, integration flexibility and reliability as an SOA architecture of choice for enterprises. All other aspects of development within Microsoft are centered on.NET as the basis of creating integration links to.NET, so that from any given Microsoft Office document to a wireless connection from a PDA, to the integration of enterprise applications, all can be coordination, synchronized on the.NET SOA architecture. IBM's WebSphere, Oracle's Fusion, and SAP's NetWeaver have comparable levels of scalability, integration potential and reliability. For Microsoft to be challenged corporate wide, any given competitor would need to have this level of integration inherent across all systems, software and functional components and by having this, would challenge Microsoft at the resource level as well. Another way of looking at this is that any given competitor which can produce an SOA architecture and integrate it with enterprise applications has the necessary resources to also support its continual fine-tuning and development.

In terms of market commonality, the most critical business for Microsoft is it Office product line. The market commonality between Office and open source vendors presents the most significant strategic threats to profits that Microsoft is facing today. A secondary factor from a commonality standpoint is the continued development and refinement of server-based applications that run on the Linux operating system. This is a critically important area of competitive commonality for Microsoft as well.

b. Evaluate the drivers that will influence each of the competitors' actions and responses.


Foremost for this competitor are the drivers of customer loyalty and the need to continually protect its unique iTunes strategy that includes the build-out of music and video editing on its PCs and servers. The secondary factor is the fact that Apple has its down desktop and laptop operating system which has features that put it ahead of Microsoft specifically in the area of graphic design. The continued focus on innovation to keep their customers loyal is the most critical driver for Apple. The secondary concern is how to create greater value at the operating system level compared to Microsoft and extend superiority in this regard.


The world leader in search, Google challenges Microsoft in the Platform Products and Service Division. Google's unique approach to creating an advertising-based model has given them the ability create revenue purely based on clicks and page views, a feat Microsoft had yet to accomplish in the context of the case study. These drivers of the advertising model on the one hand and the development of ancillary businesses at a very rapid pace will make Google just increase the competitive pressure on Microsoft to dominate the search arena. Google responds creatively to competition by creating entirely unforeseen applications as the case study shows.


Having defined the OnDemand initiative in the timeframe of this case study, IBM is focused on two fronts strategically relative to Microsoft. The first is WebSphere to battle against.NET and the second is on the area of hosted applications through the OnDemand initiative. IBM chose to extend a few of their enterprise-wide applications on OnDemand initially. These would be most competitive to the products in the Platform Products and Service Division. Microsoft would respond to competitive threats by making WebSphere even more broad and robust in terms of functionality.


From the case study, Oracle is the most aggressive of Microsoft's competitors in the area of mergers and acquisitions, and also has concentrated their efforts on an SOA architecture as well.

Oracle also competes against the Great Plains applications and also most significantly with the Platform Products and Service Division. Oracle's flagship products are their database servers and they often will compete on price or include applications from the acquired companies. Oracle would respond to[continue]

Cite This Essay:

"Microsoft Diversification Strategy Define The" (2009, February 28) Retrieved October 24, 2016, from

"Microsoft Diversification Strategy Define The" 28 February 2009. Web.24 October. 2016. <>

"Microsoft Diversification Strategy Define The", 28 February 2009, Accessed.24 October. 2016,

Other Documents Pertaining To This Topic

  • KO Advantages Coca Cola Pursues a Differentiation Strategy

    KO Advantages Coca-Cola pursues a differentiation strategy, and has built its company around the pursuit of this strategy. The strengths that the company has -- R&D, marketing, and heavy advertising -- all directly support the differentiation strategy. Coca-Cola uses its strategy to foster sources of sustainable competitive advantage, although the strongest of these is the company's brand. All told, Coke has an excellent strategy that does not result in many missed

  • Brand Equity Has Been Defined

    Then soon other players came such as Pepsi who also tried to penetrate the market. With the introduction of Pepsi into the market, the market share was divided, sales volume for both commodities went low and the prices also lowered. The product life cycle of some of these products may go far beyond the expected limit, and this is attributed to the brand equity they have. Use of Interactive television

  • Classic Internationalisation Theories Classic Internationalization...

    Firms with what organisational patterns are more likely to acquire existing firms? In what stage of internationalisation is acquisition more likely? Such research should not assume that such decisions are always rational. It may be that irrational factors are important at times. For example, it might be that the rush to acquire businesses in Europe prior to 1992 and to acquire companies in Asia in the mid-1990s reflected a

  • Google Introduction and Description of the Company

    Google Introduction and Description of the Company Organizational Structure Industry Analysis Value Proposition Financial Performance Figure 1.1 Revenue and Net Income Growth TOWS Strategies BCG Matrix Leadership Alliances Measures Google is a highly successful Internet company that makes most of its money through online advertising. It has been able to achieve this success through a combination of leadership and culture. The company's many strengths are in general aligned with the opportunities that exist in the marketplace. As a result, Google has the

  • Pioneering Management Theorist

    firms have much to learn from the history of management thought and pioneering management theorists: An Essay Management Concepts Organizational workforce management issues Management Theories Current practices Improvements required The management concepts starting from early eras of 1950s up to 1990s are discussed in relation to their impact on the business and workforce management. The practices and management concepts evolved over a period of time based on various theories and frame works for effective human

  • Google Is an Information Services Company That

    Google is an information services company that makes most of its money in online advertising. The company owns the world's #1 website by traffic ( and several other top websites in Blogspot and its nation-specific search sites (, etc.). Google has a number of different product/service offerings including online advertising, the Chrome web browser and the Android mobile operating system. Revenues last year were $37.9 billion and net income was

  • Security Risk Management Process

    Microsoft proposes six steps to enable proper reactive management of security risks which include: protecting safety and life, containing and assessing the damage, determining the cause of and repairing damage, reviewing risk response and updating procedures in the hopes of preventing risk in the future (Microsoft, 2004). A proactive approach is much more advantageous however as it enables corporations to prevent threats or minimize risks before negative occurrences happen within an

Read Full Essay
Copyright 2016 . All Rights Reserved