Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
Selling enterprise software with channel partners requires Microsoft to create a separate department just for training, coordination of pricing and product requests, and also define entirely new delivery platforms for the applications as well. The Software-as-a-Service (SaaS) platform has been legitimized by Salesforce.com. Microsoft is reinventing itself to in this area so they can better sell with resellers and partners, and also better capitalize on the growing popularity of the SaaS platform as a delivery option for their software. The catalyst of these major shifts in strategy is a direct result of the global recession drastically slowing down the sales of enterprise software.
Open Source Competition
By far the most strategic threat to Microsoft is open source software. There are many business models that open source software vendors use and rely on, with the most prevalent being the requirement of a one-time price to purchase the application and optional yearly maintenance fee (Bitzer, Schroder, 2007). When the U.S. recession began in 2007 and through 2010 entire companies has chosen to standardize on open source due to its low cost and no yearly license fees, a strategy Microsoft has used for decades in enterprise accounts to ensure recurring revenue streams. Open source accelerated the effects of a bad economy on Microsoft's financial condition and also began to chip away at its leadership in databases as well.
The open source operating systems market is one that has several companies all vying for enterprises, or large businesses, to standardize on them. Taken together all of these open source operating system vendors are targeting the high maintenance fees Microsoft requires as a way to get new business. This continues to be a very effective strategy for the open source competitors globally Microsoft has. In addition, this strategy has also paid off very well for competitors looking to take customers away from Microsoft in the areas of office automation and database applications as well. The strategy of competing not head-on with Microsoft in these markets but with their pricing policies and the complexity of them continues to just amplify the effects of the recession on this area of Microsoft's business (Ebert, 2008).
In response Microsoft initially began antitrust proceedings and attempted to sue their open source competitors alleging copyright infringement and in one case, collusion. When the courts came down on the side of the open source vendors for being a catalyst of more competition that directly benefited to customers, Microsoft backed off their legal strategy and accelerated the development of over 100 different integration modules. The recession also forced Microsoft to begin to re-evaluate their pricing strategies on Microsoft Office and their database applications including SQL Server. As a result of the combined effect of competitive pressure from open source vendors and the economy making open source pricing and simplified licensing approaches more attract to customers, Microsoft had no choice but attempt to integrate to them if they wanted to retain their customer base. This was accelerated over the last twenty four months as it was evident that global economies were headed for a prolonged recession.
Thesis: (Microsoft has drastically accelerated their product development and product introduction plans in three core areas of their business in response to the worsening economic condition globally. These three areas of focus include online advertising, enterprise applications, and open source operating systems including Linux and OpenOffice, an open source and license-free competitor to Microsoft Office.) From the analysis presented in this paper it is clear how dependent Microsoft is on a stable economy for growth. Only a small percentage of the company's many product divisions have long-term recurring revenue stream associated with them, and as a result when the economy worsens it impacts Microsoft exceptionally fast. In the case of the online advertising business models the company has continually tried to implement, the formidable competition from Google has amplified the effects of a down economy. The battle of talented engineers continues with Google winning often due to their culture being more oriented towards freedom to innovate. The global economic slowdown has made Microsoft concentrate on partnerships in this area; a strategy the company rarely took on during more economically stringer times. A second area where the economic conditions globally have hit Microsoft particularly hard is in enterprise server and application software sales. As the credit crunch has forced many businesses to forestall or even eliminate software upgrades, Microsoft's selling strategy in enterprises had been consistently focused on annual license fees. This has been difficult for many companies to afford and as a result, they have chosen to move on to open source applications. Microsoft has initially focused on litigation to attempt to slow down open source competitors, yet has been forced to integrate with them or face the possibility of losing customers. All of these factors taken together have made Microsoft concentrate more on new product development as a priority and continually strive to make the processes included in this area as efficient and customer-focused as possible. Economic conditions amplified these competitive challenges for Microsoft, forcing the software company to a new level of urgency.
(Babu, Dalal, 2006)
TK Suresh Babu, & Satish S. Dalal. (2006). ERP Implementation Issues in SMEs: 'Microsoft Great Plains' Implementation in a BPO Organization. South Asian Journal of Management, 13(1), 61-75.
(Bitzer, Schroder, 2007)
Jurgen Bitzer, Philipp JH Schroder. (2007). Open Source Software, Competition and Innovation. Industry and Innovation, 14(5), 461.
Christof Ebert (2008). Open Source Software in Industry. IEEE Software, 25(3), 52-53.
(Gawer, Cusumano, 2008)
Annabelle Gawer, Michael a Cusumano. (2008). How Companies Become Platform Leaders. MIT Sloan Management Review, 49(2), 28-35.
Gomes, L.. (2009, March). Microsoft vs. The Big Three, Forbes,183(5), 46.
Charles WL Hill. (1997). Establishing a standard: Competitive strategy and technological standards in winner-take-all industries. The Academy of Management Executive, 11(2), 7-25.
Robert D. Hof. (2008, May). HOW GOOGLE FUELS ITS IDEA FACTORY: CEO Eric Schmidt describes the simple principles driving the company's steady stream of innovations. Business Week,(4083), 54-58.
(Iansiti, Richards, 2009)
Iansiti, M., & Richards, G.. (2009). SIX YEARS LATER: THE IMPACT of the EVOLUTION of the it ECOSYSTEM. Antitrust Law Journal, 75(3), 705-721.
Willie D. Jones. (2006). Microsoft and Google Vie for Virtual World Domination. IEEE…[continue]
"Turbulent Times At Microsoft Microsoft" (2010, March 19) Retrieved October 21, 2016, from http://www.paperdue.com/essay/turbulent-times-at-microsoft-784
"Turbulent Times At Microsoft Microsoft" 19 March 2010. Web.21 October. 2016. <http://www.paperdue.com/essay/turbulent-times-at-microsoft-784>
"Turbulent Times At Microsoft Microsoft", 19 March 2010, Accessed.21 October. 2016, http://www.paperdue.com/essay/turbulent-times-at-microsoft-784
He sees a lack of honesty being a major detriment not to just the character of a company but to its operations as well. In one of the most interesting areas of the interview, Mr. Huang discusses how he goes through the interview process at Nvidia. What he's looking for is a person passionate about what they are doing, sees the vision of where the company is going, and also
humanities study means human. In 10 weeks, thought critically concepts myths narratives, morality decision making, freedom, happiness, specific subjects literature, art, music, film, popular culture. (1) I am a human being who lives in the 21st century. In my time, being human is a complex process. As a race, we exist on a series of predetermined conditions which serve to shape our daily experience into a habitual cycle of living.
Strategic Direction of Apple in the Enterprise Apple (NASDAQ: AAPL) has emerged as one of the most profitable and prolific companies in the world, generating a market capitalization rate of $623B as of this writing in late August, 2012, delivering $148B in Revenues in their latest fiscal year and $40B in Net Income (Apple Investor Relations, 2012). One of Apple's greatest strengths is its ability to quickly translate innovative product concepts
The essence of any successful entrepreneurial strategy is in creating significant value for the customer (Drucker, 1985). Microsoft needs to shift towards a more open API-based product strategy that allows for more rapid innovation from hardware and services partners both. This direction alone will help Microsoft to compete more effectively over the long-term, by giving them the ability to compete for precious developer resources and times with partners and
Indeed, effective problem solving in these circumstances often requires high levels of creative collaboration (Richards, 2007a, p. 34). In recognition of this reality, employers consistently name the ability to work together creatively as a primary and crucial skill -- even though many organizations have created cultures that undercut individual and collective creativity. In order to solve this problem there is a need of a comprehensive review of the facility management
Organization Corporate Social Responsibility (CSR) refers to the relationship between a business and the society and how can both can benefit mutually through a joint partnership. Caroll (1991) suggests four different aspects to be a part of CSR and they are economic, legal, ethical and philanthropic. The economic aspect is the basis on which the business is built while legal responsibilities are encoded in law. Ethical responsibilities include doing what
Industrial Organization vs. Resource-Based View of Management Analyzing the Differences Between Resource-Based and Industrial Organization-Based Views of Strategy In identifying the common and differing aspects or themes of the industrial organization (I/O)-based strategy which is also often referred to as the Competitive Forces Approach (CFA) (Porter, Stern, 2001) versus the Resource-Based View (RBV) (Barney, Ketchen Jr., Wright, 2011) this analysis identifies the differences and similarities between the two views. A major factor