Microsoft - Strategic Analysis and Future Directions - Case Study Example

EXECUTIVE SUMMARY This report focuses on the strategic analysis of Microsoft Corporations where the report primarily focuses on the current strategies deployed by the company which is more inclined towards a differentiation strategy for its various product lines. The report then focuses on the various external, internal and other risk factors that impact the smooth flow of business. Core competencies of the company is discussed through various strategies which includes business level strategies, corporate strategies, international strategies, mergers and acquisitions, dynamic business strategies and other core competencies of the company. Finally the report is concluded with viable and feasible recommendations and future strategies which are discussed by help of change management, managing weaknesses and investing in growth opportunities. In a nutshell the report provides a complete understanding of Microsoft strategies and recommendations which can help the company to achieve sustainable development in future years to come. TABLE OF CONTENTS 1.0 Introduction 4 2.0 Brief about Microsoft Corporation 4 3.0 Strategy of Microsoft 5 3.1 Current Strategy 6 4.0 Factors impacting Microsoft 7 4.1 External Environment Impact on Microsoft 7 4.2 Porter Five Force model 9 4.3 Blue Ocean Strategy 10 4.4 Internal Environment Impact on Microsoft 11 4.5 Other Risk Factors 12 4.6 Gap Analysis 13 5.0 Core Competency of Microsoft 13 5.1 Business Level Strategy 13 5.2 Corporate Level Strategy 14 5.3 Mergers and Acquisitions 16 5.4 International Strategy 17 5.5 Strategy Implementation 17 5.6 Dynamic Business Strategy 18 5.7 Other Core Competencies of Microsoft 19 6.0 Future Strategies and Recommendations 19 6.1 Change Management 20 6.2 Managing Weaknesses 20 6.3 Investing more in Growth 21 6.4 More Recommendations for Future Growth 22 7.0 Conclusion 23 8.0 References 24 1.0 INTRODUCTION Microsoft Corporations is one of the biggest names in technology industry which was founded by Bill Gates and Paul Allen in 1975. This report focuses on the strategic analysis of the company with a prime motive of future growth opportunities for Microsoft along with the potential risks that the company may face in achieving sustainable business success. The report highlights the Microsoft’s current business strategies, its core competencies, key factors impacting the smooth flow of business and recommended future strategies most viable for the company. The report is prepared in a logical manner which includes an in depth analysis of Microsoft’s business strategies, internal and external environmental factors affecting the business, business level, corporate level and international level strategies, mergers and acquisitions of the company, strategy implementation tools along with change management (Webster, 2000). Finally the report is concluded with future strategic directions for the company to ensure sustainable business success throwing light on both theoretical and practical approach to achieve the same with lesser efforts. 2.0 BRIEF ABOUT MICROSOFT CORPORTATIONS Microsoft Corporation is an American multinational corporation with its headquarters situated in Redmond, Washington, USA which develops, manufactures and supports a varied range of computing devices with the use of latest technology. The company initial began its business in operating systems, but later diversified itself towards software development and other allied products related to IT. The company presently works in the following five divisions. Windows and windows live division. Servers and tools Microsoft business division. Online service division and Devices and entertainment division. The organization has grown over time and has adopted a strategy where they look to buy other companies. Nokia is an example in that direction. The diversification has helped Microsoft to reduce their level of risk. Microsoft continues to dominate the market. The intensity of competition has increased and has raised fear that Microsoft would lose the market in the same manner as IBM faced and thereby needs to develop their strategies which ensures better utilization of resources. 3.0 STRATEGY OF MICROSOFT Different groups argue different strategies for the success of Microsoft during the past 40 years. Some groups challenge Microsoft strategies as unethical to create a win situation through their fact and figures while some groups argue Microsoft to be ethical in all major aspect. However, leaving critics behind the company today leads the industry and occupies a virtual monopolistic status leaving no or very little room for competitors to come closer. 3.1 CURRENT STRATEGY Microsoft currently operates with a mission to create innovative technology which is easily accessible and adapts to the needs of every single individual. It works on the bases of differentiation to model all its business strategy. The company attempts to leverage both innovations and trustworthiness in its product to deliver the best products designed with latest technology and features to upgrade the same in future years. Microsoft ensures that there is a tight integration between its operating system, middleware and applications to deliver best of products and services to its customers. The company further today operates on its motto“ Be what’s Next” to ensure and promise its customers to deliver more upgraded products with better use of technology and innovations. Currently the company also operates on its long term objective of low prices to enlarge its customer base and ensure higher returns for the organization. Microsoft also offers premium software versions for its premium customers at a premium price but the same has less strategic influence as the overall strategy is concerned. Microsoft during its products designing, development, evaluation and release ensure accessibility of the same to all its customers at any point of juncture (Roper and Davies, 2007). The company follows a merger and acquisition strategy to make an impact on a global level. Currently the company is looking to acquire Nokia to create its presence in the mobile world of the Asian market. This we see, Microsoft current strategies varies as per its targeted market, available resource and customer demand. There is no specific strategy that the company sticks too rather focuses on an open and transparent communication, international accessibility of its available products and services, continuous innovation, cloud computing, collaboration along with policy to work with governments to ensure higher success of the firm in future years to come. 4.0 FACTORS IMPACTING MICROSOFT There are various external and internal environmental factors which affects Microsoft and its operations. The same has been discussed as under. 4.1 EXTERNAL ENVIRONMENT IMPACT ON MICROSOFT External environmental factors are elements which are beyond the control of an organization. However, an organization through strategic and proactive planning can mitigate the risks of such factors. The external environmental factors affecting Microsoft has been discussed by the help of a PESTEL analysis. POLITICAL AND LEGAL Microsoft faces serious threat from antitrust laws and has to mount to legal defenses many a times in its past history. The company as a result has to accrue huge funds for contingent legal cases. To avoid political interruptions, the company has recently confirmed their license agreement even in countries in which the company pays royalty (Johnson, Scholes & Whittington, 2008). Political factors give rise to trade barriers in their host country and international expansion strategies. ECONOMICAL The world today experiences a global slowdown with rising inflation and declining purchasing power, which affects the sales of Microsoft. The company has to recently release corporate bonds with borrowing rates lower than governmental bonds (Johnson, Scholes & Whittington, 2008). The company being a global giant has to constantly take measures to improve the economy of the country which affects the returns, growth and profits to a considerable extent. SOCIAL The company needs to constantly understand its responses towards the society and develop strategies accordingly to ensure that the same is not detrimental to the society. Microsoft has to partners with government and communities to ensure smooth flow of social activities and increasing innovations (Johnson, Scholes & Whittington, 2008). The company in order to maintain same has developed many social networking sites along with video games and baby boomers. TECHNOLOGIAL Microsoft has to constantly deploy huge funds to meet with the changing technological advancements. The very success of the company depends on its R&D department to create new innovations by use of the latest technology. It is undoubtedly a dominating company in the technology industry and has established an operating software market at global level (Johnson, Scholes & Whittington, 2008). However, it still faces tough challenges from its competitors in the field of technological advancements. ENVIRONMENTAL Microsoft operates on a world wide scale and faces serious threats on environmental fields not only in its host countries but its operating countries as well. Consumers today are more cautious about eco friendly products. As a result of the same, Microsoft has to constantly seek environmental programs educating people at large about environmental issues and design products which are less harmful to the environment at large (Johnson, Scholes & Whittington, 2008). 4.2. Porter Five Force Model The porter five force models help to conduct an external analysis for Microsoft and helps to understand the manner in which different factors influences their working. The details is as Threat of Entry The threat of entry of new players is low because of high infrastructure cost. This is further supported by the fact that Microsoft is a pioneer in most areas and has developed most of the software and hardware by themselves. This has given them an edge and made it difficult for other players to enter the market making the entry barrier to be high. Threat of rivalry The threat of rivalry is low as there are a few players performing in the market. Further, since Microsoft regularly looks towards updating and providing new and better products and services it has reduced the level of competition. The state thereby looks at ensuring that Microsoft is in a position where they look to compete against their own product and have been able to reduce the threat. Threat of Substitute The threat of substitutes is low as Microsoft is one of the pioneers and develops new products and software which is compatible with their offerings. This has reduced the level of threat as it has ensured that Microsoft is able to control the market and is able to develop and deliver new and better products on a continuous basis Bargaining power of Suppliers The threat of suppliers is low as most of the suppliers have to purchase the product which is developed by Microsoft as the few opportunities doesn’t provide an area through which it can be replaced. This is further complicated by the fact that the products are compatible with Microsoft products thereby reducing the threat. Bargaining power of Customers The customers have a low bargaining power as limited option and increased compatibility has forced the customers to purchase products which are provided by Microsoft. Customers have no option but to rely and purchase the same has increased their dependency on Microsoft and has reduced their level of threat. 4.3. Blue Ocean Strategy The Blue Ocean Strategy will look toward having a hostile bid on its competitor so that Microsoft is able to increase its market share and develop an opportunity through which their presence in the market increases. This will look at finding and developing a balance through which based on the resources and strength Microsoft is able to increase their market share and improve their presence and prominence in the market. 4.4 INTERNAL ENVIROMENT IMPACT ON MICROSOFT Internal factors are those which are under the control of an organization and an organization through its strategies and skills along with core competency can build upon the same and emerge as a market leader in its industry. Microsoft has dominated the market in 80’s and 90’s through its operating system, however the company in the last decade has not been able to bring new products in the market to continue its dominance. New product development thus seems to be one the major weaknesses of the company internally. Further the weakness would keep increasing posing serious threat to the company in terms of lower sales, lower growth, lower returns and sustainable business as the company’s old products lose revenues and market share. On the brighter side on internal strengths the company has been able to build its infrastructure from its very inception and has been able to keep the company’s culture intact and become even stronger (Doyle, 2008). The company has been able to deploy the latest technology in its products and develop products in response to customer demands. Microsoft has dedicated and qualified supports in all major markets to resolve any problem at a faster pace and ensure high customer satisfaction. The company has been successful in protecting its intellectual property rights and has been one the leaders in bringing a revolution in information technology with its operating system being used in over 70 percent computers worldwide. However, it is still to be noted that internal environment of Microsoft shows signs of its power and strength but the company has to still look to new products to continue its market dominance and avoid cultural conflicts and claims to ensure smooth running of the business with higher growth and returns in future years to come (Porter, 2004). 4.5 OTHER RISK FACTORS Apart from the above mentioned factors impacting Microsoft the company is pruned to the following risks and uncertainties. The cloud based computing models poses execution uncertainties and competitive risks since competitors are fast deploying funds in their own exclusive cloud based technology, Microsoft is uncertain whether their strategies will be able to attract customers towards them to generate the required fund. Threat of reducing operating margins to compete with the vertically integrated model of selling hardware and software. Rising and intense competition across all markets on a global basis since many competitors are focused on a single or multiple products which are developed with intense devotion technically (Stubbs & Cocklin, 2008). Threat of adequately protecting all intellectual property rights. Security vulnerabilities of Microsoft’s products and services may lead to decrease in revenues or increase in liability claims. Threat of hackers, viruses, worms and other malicious software programs. Microsoft’s online search engine holds a very narrow share when compared with Google and Yahoo, thus incurring heavy operational loss to the company. 4.6 Gap Analysis The gap analysis which compares the internal and external resources highlights the following areas which have to be addressed Understanding the customer needs and requirements and developing and designing products based on the needs and requirements of the customers Understanding the external environment and developing ways through which the effect can be reduced which can be achieved by dealing with the situation Using the internal capabilities and strengths through which the overall functioning of Microsoft improves and the resources are used in the most effective manner. This has been highlighted as Requirement Gap Mitigation Provide information about customer profile Develop different configuration which simplifies the process Develop new attributes to cover customer information Development of a process which allows certain and specific information to be provided to different parties Develop a software to ensure it Develop a process which requires permission to handle the different business aspects Reduction in cost Use cost cutting measures Cut down the unnecessary cost Improved and better innovation Support research and development process Funding of more projects and aiming to be innovative and developing new products and service Increase market share Presently a market leader and needs to sustain it Develop strategies which aims towards better market penetration so that market share can be increased 5.0 CORE COMPETENCY OF MICROSOFT Microsoft has emerged as a market leader in information technology industry. It has its own core competencies which add to its grand success. The same is discussed by help of various strategies initiated by the company. 5.1 BUSINESS LEVEL STRATEGY Microsoft operates on differentiation strategy. Huge funds are spent on R&D activities to design products as per customer needs and ease. The company also differentiates its products from its competitors by providing extremely good customer service particularly in its Windows and Business division segments. It is to further noted that the basis of differentiation is different in its different product segments. For example in its Windows and Windows Live division, Microsoft cannot compete with a cost leadership strategy as most of the competitors products are for free like Linux operating system, Google’s Gmail services etc whereas Microsoft is a profit entity and charges for its products offered. Microsoft further differentiates its products based on superior customer service and support which it provides. The company aims to deliver high customer service not only for its new products launched but also for its older versions of software (Hines, 2006). Microsoft differentiates products on basis of quality and customer responsiveness in its segment of servers and tools to deliver the best of service and emerge itself as a market leader. Microsoft generates 90% of its revenues from Office productivity suite which works on an integrated productivity suite and creates a monopoly market for Microsoft as the same is highly reliable and increase the productivity sharply. The quality of Microsoft Windows Office suite is differentiated on basis of quality, innovation and customer responses making it emerge as the market leader (Ismailpour & Ghafarieashtiyani, 2002). Thus the market dominance achieved by Microsoft cannot be achieved by developing on a single competency but the same is a joint effort of innovation, quality, customer responsiveness and competitive edge over its rivals. Microsoft aims for value creation strategies and further protects its products to be imitated by strong intellectual property rights thus ensuring a monopolistic market strategy in its business decisions. 5.2 CORPORATE LEVEL STRATEGY Microsoft’s organizational structures enable the company to pursue flexibility in its different corporate strategies for its varied product lines. The company looks upon a full vertical integration strategy in its Windows and Business software division while looks to follow a taper vertical integration strategy in its Games and Entertainment division. The company aims to create an entire value chain for its products thus ensuring no gaps since the products are developed in house, the codes are written by Microsoft engineers and the products and services are sold on company’s own websites. It is to be noted that Microsoft has enabled to create a monopoly market in its Windows, Server & tools and Business software division owing to the fact that it is the only company to successfully implement a full vertical integration strategy as the company has high resources to achieve the same and is highly experienced in this field from its very inception. Microsoft has been able to create value through its core competency in this segment of its business which delivers high revenue to the company and achieve market excellence through the same (Hill, 2007). Microsoft has recently looked to pursue horizontal integration strategy in its Online Service Division. The company had made a hostile $47.5 billion to takeover Yahoo in 2008. Microsoft’s Bing has incurred more losses to the company than generating revenue, thus a deal with Yahoo the 2nd largest Search engine will enable the company to bring synergy in its redundant R&D of search engines. Product differentiation will be highly achieved by bundling of Microsoft and Yahoo products and services. However, it is to be noted that still there is no such agreements between the two companies but a future deal on the same shall deliver Microsoft a larger market share in Online search engine and compete with Google to a considerable extent. This has further looked at Capability based diversification: Microsoft has used its capability and have diversified its business which has been its core strategy and has helped to deal with competition. This has provided the required dimension through which the resources are used effectively and has multiplied the manner in operations are carried out Product Market Diversification: Microsoft has aimed towards diversifying by following a strategy of new product addition. This has helped Microsoft to be able to be able to bring the required changes and has been able to reduce risk and increase their market reach Related Based Diversification: Microsoft has ensured that the diversification are related to each other and the business has aimed towards improving and growing by moving into areas through which they are able to provide every product and has thereby helped them to grow Thus we see Microsoft operates with different competencies in its corporate level strategies with proactive planning to deliver best services to its customers and build on its brand image with higher sales and revenue both in the short and longer run. 5.3 MERGERS AND ACQUISITIONS Since Microsoft’s first acquisition in 1987, the company on an average acquires six companies in a year owing to its high cash reserves and market expansion strategy. The company till date has acquired 146companies, purchased stakes in 67 companies and has 25 divestments. Thus one the main competency of Microsoft is its ability and capability to acquire more companies to cater the world market with a high distribution system and generate higher revenues. Microsoft has made six acquisitions over one billion dollars worth thus showing huge cash reserves for the company to ensure smooth flow of its business. Microsoft’s first acquisition was Forethought which is commonly known as Microsoft PowerPoint today. One of the largest acquisitions was Hotmail in 1997 and deal was made for $500 million. On May, 2011 Microsoft announced acquisition of Skype Technologies with a value 32 times greater than Skype’s operating profit. Recently the company is looking to acquire the mobile hardware division of Nokia to produce smart phones and ensure to make its presence felt in the increasing mobile market (Czinkota & Ronkainen, 2004). However, it is to be noted that Microsoft is much arguably criticized for its proclamation of being leader in innovations as much of the company’s products and services have been either acquired or modified from the innovations of its rivals. Leaving behind the critics it can be preferably said that acquisitions and mergers are one of the strong competencies of Microsoft Corporations. 5.4 INTERNATIONAL STRATEGY Microsoft uses many strategies to reach global markets. One of its core competent strategy to reach international markets is Outsourcing. For example, the company has established a production line in China for its Xbox gaming system. The company uses outsourcing strategy to lower costs and increase revenues. Further competitors are not lacking behind to explore global market thus outsourcing seems to be the best alternative strategy to capture larger share in international market to capture a larger share in comparison to its rivals (Alvarez & Casielles, 2005). Acquisitions and mergers also act as a useful tool for Microsoft to capture international markets. Microsoft’s international strategy depends on its entry strategy. Since the industry life cycle presently shows signs of shakeout zones Microsoft looks towards international diversification and innovations for international expansions. 5.5 STRATEGY IMPLEMENTATION One of the core competencies of Microsoft is not just proactive strategy making but successful implementation of the same to ensure higher growth and success in the long run. Microsoft looks towards strategic alternatives each with its own focus. The company applies status quo, horizontal integration, vertical integration, diversification, joint ventures, retrenchments, innovation and restructuring strategies to ensure successful implementation of its strategies (Chrisan, 2001). The company in order to pace with the accelerating changes in the computer needs and demands looks to move beyond PC towards intelligent devices and innovative appliances. The company in order to successfully implement its strategies looks towards strategic alliances and partnerships with bigger giants like IBM, Yahoo, Apple etc. Microsoft has developed a huge networking of distribution system to cater the world market. It has its offices in over 100 countries and distributes and markets its products only through original equipment manufacturers, distributors, retailers and online marketing. Microsoft ensures regular checkups of its strategy implementation through various audit tools to ensure successful and transparency in its implemented strategies. 5.6 DYNAMIC BUSINESS STRATEGY In this rapid dynamic world where technological advancements are at its zenith it is important for an IT giant like Microsoft to frame its policies and strategies to meet the pace of changing environment. Microsoft deploys huge funds in its R&D department to bring out new innovations and ideas (Syed, Alwi and Da Silva, 2007). The management changes its strategy ranging from full vertical integration to horizontal integration depending upon the changing environment. The company applies a two-tier ERP strategy along with new ERP solutions to meet the requirements of this changing environment (Drummond, Ensor and Ashford, 2007). Microsoft develops dynamic business strategies by considering three vital elements which are watching competitors move, planning flexibility in its implemented strategies and constantly seeks for new information to develop innovative products and emerge as market leader to capture a larger market share. 5.7 OTHER CORE COMPETENCIES OF MICROSOFT Wide range of products division ranging from Windows servers, games and entertainment to developer tools. Provides a guide for its business partners to earn competencies on its websites. Helps business partners reach larger markets with new innovations, expertise knowledge and extended customer base (Waeraas, 2008). Ensure to deliver right services at the right time by aligning its business organizational structure in a synchronized manner. Integrated innovations from its very inception to gain competitive edge over its rivals. Innovation through strategic alliances, acquisitions and mergers, synchronized internal developments and building on a strong distribution channel. 6.0 FUTURE STRATEGIES AND RECOMMENDATIONS Microsoft has achieved great success in the IT industry owing to its monopolistic products like Microsoft Office and Microsoft Windows. However with changing environment and technological advancements the company needs to develop more viable and futuristic strategies to enable its long term sustainable success. The following point highlights the major strategies that Microsoft can look upon to ensure sustainable business success in the longer run. 6.1 CHANGE MANAGEMENT Microsoft has been facing huge troubles to fulfill its management gaps. Increasing employee turnover a concern for change: Soon after Ray Ozzie who was responsible for cloud computing and develop plan for Azure platform left the company Ballmer could not find a reason for the same which created missing links in the organizational structure of Microsoft Corporations. Both Gates and Ozzie’s departure from the company has left the company with unfilled positions to play the role of technology visionary. Finding adequate workforce to manage change: Thus the company’s basic need is to fill those places with suitable candidates to ensure no further reputation loss to the company along with higher growth and returns from the same. Recently the company management and Microsoft CEO Steve Ballmer had realized the importance of a corporate restructuring but Microsoft has a mixed history when the issue is related to change management (Cook & Dave, 2004). Microsoft restructuring plan should look towards a strategic plan to shift its identity from being just a producer of operating system and software devices to work and design hardware to meet specific customer needs and demands. 6.2 MANAGING WEAKNESSES Microsoft should look to identify and acknowledge its weaknesses and develop strategies to manage and mitigate the same. Microsoft should look upon the following Migrate perceptions and apply rebrand strategies: Microsoft has taken steps to alter its reputation among consumers however still many critics still argue about Microsoft’s products as “the evil empire” (Awni, 2008). In order to mitigate the same the company should look for rebranding strategies and make business functions easier to ensure smooth flow of the business. Address security concerns: Microsoft should look to deploy more funds in researching and responding to its security concerns to deliver consumers with the trust and confidence that their security is the basic aim of the company and attract a larger pool of customers towards its future growth (Clegg, Kornberger & Pitsis, 2012). 6.3 INVESTING MORE IN GROWTH Microsoft should look to move from cash cow in the BCG matrix towards investing in growth. The company can look upon the following strategies for the same. Innovation: Microsoft should look to continue its innovative strategy by focusing more on new innovations, especially through .NET. Microsoft should look to create a base of committed customers by developing educational version of their software which can be easily licensed to colleges and universities (Dimitroff, Schmidt & Bond, 2005). Further Microsoft should look towards developing enterprise software which are not platform dependent and can be used on multiple devices thus ensuring flexibility in its products and services. Create Demand: Microsoft in order to boost up sales and generate higher profits with more growth should look to create more demand of its products by specifically targeting client companies to use more of its developed enterprise software (Aaker and McLoughlin, 2007). Microsoft should provide features of up gradation to attract more potential customers and hold on the existing customers. Invest in competitors: Microsoft should continue with its strategy of acquisitions and mergers as the same has enabled the company to draw higher customer base and generate higher growth (Beal, 2000). It should look to acquire Nokia to develop a market presence for its windows mobile phones in competition to the smart phones catering a huge market at global level. Further expansion in global market: Microsoft already has its presence in over 100 countries across the globe. Yet majority of the enterprise software are sold in North America and European market. Microsoft still has ample scope to capture and penetrate into the Asian market by developing enterprise software specifically designed to cater the needs of companies in the Asian region (Berkman & Gilson, 2001). Entering into outsourcing strategy with companies like Infosys shall speed up its process to make its presence felt in the Asian market. Market Leadership: Microsoft has to look and ensure that they remain the market leader. This will require developing and being innovative so that they are able to stand ahead of competition. Also, diversifying and reducing risk through development of new products based on customer needs will help them to act as a market leader and ensure a better presence in the market. 6.4 MORE RECOMMENDATIONS FOR FUTURE GROWTH Microsoft should look towards the Blue Ocean Strategy will look toward having a hostile bid on its competitor so that Microsoft is able to increase its market share and develop an opportunity through which their presence in the market increases. This will look at finding and developing a balance through which based on the resources and strength Microsoft is able to increase their market share and improve their presence and prominence in the market. Microsoft should look towards Divisionalized management strategy by investing in multiple businesses and making new innovations in its enterprise software to cater the needs of small and mid-sized market in an effective manner. Use its core competencies of proactive planning and implementing strategies to gain key advantage over its rivals in a more effective manner. Microsoft should look towards earning more trust than suspicion by providing more security to its end users and developing new features to remove the fear of privacy towards a single-sign-on technology (Cateora, Mary & Graham, 2009). Microsoft has a challenging task to convince its existing customers to upgrade their systems with latest and new versions of Windows and office to attract a larger pool of loyal customers (Schutte and Ciarlante, 2008). The company should look to lower its huge accrued contingent liabilities reserves by staying out of court and managing its legal battle in a more effective manner. 7.0 CONCLUSION The report highlights the strategic analysis of Microsoft Corporations to ensure sustainable future developments. The report focuses on the current strategy implemented by the Microsoft which is mainly inclined towards a differentiation strategy for its various product lines. The report then focus on the major elements that affects the smooth flow of the business which includes internal, external and other risk factors. Core competencies of Microsoft are highlighted by explanation of various strategies which include business level strategies, corporate level strategies, international strategies, strategies implementation, mergers and acquisitions and dynamic business strategies. The report is finally concluded with future strategies and recommendations which includes change management, managing weaknesses and investing in growth investments. 8.0 REFRENCES Aaker, D. and McLoughlin, D. 2007. Strategic Market Management European Edt John Wiley Awni, R. 2008. Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, 78, 70. Alvarez, B. & Casielles, R. 2005. 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