Case Study Report-Will technological change undermine the competitive threat of Microsoft - Essay Example

Technological Change fails to undermine the Competitive Threat of Microsoft Introduction Microsoft aims at undertaking technological innovation in the international market in order to make people work more and learn to communicate with people all over the world (Padula and Dagnino, 2007). The company manufactures and delivers software services to the customers in order to create new opportunities for the individuals. However due to the highly competitive market structure the company faces serious threats from the rivals regarding the technological innovation that the companies undertake (Padula and Dagnino, 2007).

The paper aims at discussing the initiatives taken by Microsoft in dealing with the challenges it faces in the international market. Discussion Microsoft has created a brand name in the international market and it has a huge customer base. The company operates worldwide and its branches are located in 100 countries (Padula and Dagnino, 2007). Microsoft undertakes extensive business research before introducing new product in the international market and analyses the impact it would have on the customers and forecasts its future growth prospect (Microsoft, 2014).

Based on the study carried out by Microsoft it has revolutionised the market by introducing various cloud based solutions to the customers related to the software and the content over internet such as the Microsoft Office 365, Xbox Live, One-drive and Skype (Microsoft, 2014). However there are other companies in the market that undertakes technological innovation that proves to be competitive for Microsoft. For example Apple Inc. has launched new smart phones in the international market that serves the high profile customers.

The disadvantage of Apple Inc. is that it only focuses on the affluent sections of the population and fails to serve the lower middle class group. On the contrary Microsoft has taken over Nokia which is a communication company headquartered in Finland. This has helped Microsoft in developing smart phones like Microsoft Lumia that is affordable to the middle class population as well (Microsoft, 2014). This take over strategy has made Microsoft powerful in the international market and it has increased the possibility for future growth prospect.

The product that Microsoft offers has been rated with high points by the customers of all age groups as it is user friendly compared to the products manufactured by Apple Inc (Microsoft, 2014). However due to the quality services offered by Apple Inc. and due to its popularity in the international market it enjoys a monopoly power in the smart phone market and Microsoft faces difficulty to cope up with the challenges of introducing smart phones that are comparable to Apple’s products (Microsoft, 2014).

Microsoft also faces competition from Samsung which has captured the market with the new model of tablets introduced that attracts the customers in the international market. This has posed a severe threat to Microsoft regarding the loss of customer base in the global market. Conclusion The research is carried out based on the technological change adopted by the Microsoft in the international market. The study says the Microsoft enjoys a dominant position and it has set up a high reputation in the global market with the cloud based services that it provides.

It acts as a medium for gathering information as well as a mode of communication through the online services it provides. However it faces a serious challenge from Apple Inc. that manufactures high quality smart phones that are suitable for affluent population. The research says that Apple Inc. and Samsung have been successful in dominating over the smart phone market as well as introducing other electronic goods and hence Microsoft despite undertaking technological innovation has failed to reduce the competitive threat.

Reference List Microsoft., 2014. Annual Report. [online] Available at: [Accessed 24 June 2015]. Padula, G. and Dagnino, G. B., 2007. Untangling the rise of coopetition: the intrusion of competition in a cooperative game structure. International Studies of Management & Organization, 37(2), pp. 32-52.