Mar 18, 2017 - Microsoft Corporation is an American technology company. It's headquarter is located in Redmond Washington USA. It was founded by two. Continuing to expand our extensive portfolio of strategic planning tools we have recently added an Excel SPACE Matrix template. To start using it to produce your SPACE Matrix just click on.
Bcg Matrix Of Microsoft Company Background Template
- BCG matrix is the term used in the context of management. Full form of BCG matrix is Boston Consulting Group Matrix. BCG matrix has four types of scenarios with respect to the market share of the company, cash flow generation and growth rate of the industry in which company is operating.
- 100% (1 rating) What is Microsoft corporation IE matrix, SFAS matrix, BCG matrix and GE/McKinsey matrix? IE Matrix:- The Internal-External (IE) matrix is another strategic management tool used to analyze working cond view the full answer.
Microsoft Ansoff Matrix is a marketing planning model that helps the multinational technology company to select its product and market strategy. Ansoff Matrix distinguishes between four different strategy options available for businesses. These business growth strategies are market penetration, product development, market development and diversification.
Microsoft Ansoff Matrix
Microsoft uses all four strategy options within the scope of Ansoff Growth Matrix in an integrated way.
1. Market penetration. Market penetration refers to selling existing products to existing markets. Microsoft uses market penetration strategy to sell its Windows software and devices and other products in 116 Microsoft stores worldwide as well as through online channels and authorised distributors. The multinational technology company uses Microsoft Rewards loyalty program to pursue its market penetration strategy.
2. Product development. This growth strategy involves developing new products to sell to existing markets. Microsoft engages in product development strategy systematically. The tech giant’s research and development expenses increased USD 1.7 billion or 13% in 2018 compared to the previous year.[1]
Microsoft develops most of its products and services internally through three engineering groups.
- Applications and Services Engineering Group, focuses on broad applications and services core technologies in productivity, communication, education, search, and other information categories.
- Cloud and Enterprise Engineering Group, focuses on our cloud infrastructure, server, database, CRM, enterprise resource planning, management, development tools, and other business process applications and services for enterprises.
- Windows and Devices Engineering Group, focuses on our Windows platform across devices of all types, hardware development of our devices, and associated online marketplaces.
3. Market development. Market development strategy is associated with finding new markets for existing products. Microsoft enters a new market whenever it sees there potential for its products and services. For example, HoloLens was made initially available only in 10 countries such as United States, United Kingdom, Canada, Australia and Germany. Once demand for this product increased in the global scale, the company made HoloLens available to an additional 29 markets with comparably lesser purchasing power such as Croatia, Poland and Turkey starting from November 2017.[2]
4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Microsoft uses diversification strategy occasionally. Entering the cloud business in 2006, the same year as its rival Amazon launched Amazon Web Services can be mentioned as the most notable example of diversification strategy engaged by Microsoft. This bet proved to be highly successful though.
By October 2018, Microsoft surpassed Amazon in 12-month cloud revenues, becoming an undisputed leader in cloud in the global scale. Specifically, while Microsoft earned USD 26,7 billion revenues, Amazon’s revenues totalled to only USD 23,4 billion for the same period.[3]
Microsoft Company History
Microsoft Corporation Reportcontains a full analysis of Microsoft Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Microsoft. Moreover, the report contains analyses of Microsoft leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Microsoft marketing strategy, ecosystem and addresses issues of corporate social responsibility.
[1] Annual Report (2018) Microsoft Corporation
[2] Bowden, Z. (2017) “Microsoft is bringing HoloLens to 29 new markets starting today” Windows Central, Available at: https://www.windowscentral.com/microsoft-bringing-hololens-29-new-markets-starting-today
[3] Evans, B. (2018) “#1 Microsoft Beats Amazon In 12-Month Cloud Revenue, $26.7 Billion To $23.4 Billion; IBM Third” Forbes, Available at: https://www.forbes.com/sites/bobevans1/2018/10/29/1-microsoft-beats-amazon-in-12-month-cloud-revenue-26-7-billion-to-23-4-billion-ibm-third/#510bdfb82bf1
Introduction
Diversification is the main strategy used by many corporations in a very competitive market. Many companies including Hewlett Packard (HP) participate in diversification of products and service. The main reasons for diversification are:
- Growth: the computer market is currently flooded and there is an intense competition. This has resulted in most company’s escaping the stagnating market in hope of capturing other better markets.
- Risk management strategy: companies diversify to reduce risks.
- Increased sales and profits: HP Company seeks to increase its market share and maximize on its profits.
- Economies of scale: diversification enables companies to enjoy economies of scale and this drives production costs down.
HP diversification strategy
To indentify HP diversification strategy, it is imperative to analyze the major products and services offered by the company. They include computer sale, mobile technology, recycling, energy efficiency and providing software solutions. Key HP segments and services also indicate the level of diversification. These are the following:
- HP
- HP software and solutions
- HP Pro-curve
- HP services
- Enterprise storage and service
- Personal system groups
- Printing and imaging
- Financial services section
Diversification strategies
At the corporate level, HP has global expansion strategy. The company expands regionally and internationally. This is referred to as the cross border strategy and it lowers production cost and increases sales worldwide. At a business level, the company has several diversifications.
Some of the diversifications are related to the product that HP specializes in and they are just seen as a growth in the same field. These products include manufacturer computer parts, storage devices and other HP services that are related to the computer industry.
HP has also diversified to other products that are not related to their core business. The company is currently diversifying to produce software products, offer financial services and solutions as well as investing in the production of mobile phones.
It must be noted that venturing new markets outside the company’s field of specialization is quite challenging as the company has to compete with experts in this field and the already established companies. For example, HP competes with IBM in terms of software development and with Nokia in the mobile phone technology. One strategy that HP uses is the acquisitions of companies already dealing with these products.
HP has in the recent past acquired companies dealing with hardware, software, services and those dealing with mobile devices. Some of the companies acquired are 3COM Computer Networking, EDS Information Technology Consulting, OPSWARE Inc, Compaq Personal Computers among others.
Impacts of diversification
HP diversification process has been beneficial to the company. The diversification process has increased the sales and profits margins of the company. The company develops one strong brand instead of having individual brands and hence diversification strengthens the HP brand.
HP BCG matrix
The Boston Consulting Group (BCG) matrix classifies products and services of a given business and enables the managers to determine which products should be given priority over the others. The BCG matrix has four sections representing; cash cow, dog, star and question mark.
The cash cow represents products with low growth but high market share, the star represents products with high growth and high market share, the dog shows products and services with low market share and low growth while the question mark represent products with high growth rate but low market share. The BCG matrix for HP is shown in figure 1 below.
Figure 1: The BCG matrix for HP Company
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Reference
IvyPanda. (2019, December 28). HP Corporate Level Strategy. Retrieved from https://ivypanda.com/essays/hp-corporate-level-strategy/
Work Cited
'HP Corporate Level Strategy.' IvyPanda, 28 Dec. 2019, ivypanda.com/essays/hp-corporate-level-strategy/.
1. IvyPanda. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.
Bibliography
IvyPanda. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.
References
IvyPanda. 2019. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.
References
IvyPanda. (2019) 'HP Corporate Level Strategy'. 28 December.
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