The paper "Strategic Appraisal of Microsoft" is a perfect example of business coursework. Microsoft is one of the most dominant technology companies in the world. In 2014, the company reported over $22 billion USD in net income in an environment supportive of over $86 billion in sales revenues. To further diversify its product portfolio, Microsoft acquired Mojang, the developer of the widely-popular consumer gaming software Minecraft. Launched in 2009, Minecraft is a very creative electronic game that allows customers to build innovative constructions using tools available in a three-dimensional world.
The acquisition of Minecraft cost Microsoft USD 2.5 billion in a cash contract (Peckham 2014), which appears to be a strategy that would provide Microsoft with a new strategic position in the gaming industry. Minecraft has been substantially successful throughout the world and has sold 12 million copies that can be played on personal computers, Microsoft’ s Xbox 360 console, and even available for download and purchase on smartphones and other mobile units. In 2012, when Minecraft was made available for purchase on Microsoft’ s Xbox Live, it sold over one million copies in a single week (Klepek 2012).
The 2.5 million dollar deal provided Microsoft all legal rights to the software's intellectual property protections, allowing Microsoft opportunities to improve the game and ensure competitive forces cannot replicate it. This report explores the rationale behind the strategy for this acquisition, conducting an in-depth strategic appraisal of Microsoft, identifying key stakeholders in this new acquisition strategy, and conducts an analysis of the industry and external market that will influence the potential success or failure of this decision-making. A successful company maintains two important levels of strategy: corporate-level and business-level Corporate-level strategy consists of making evaluations of the inter-dependencies of a firm’ s different business units and determining how each SBU can work together effectively to support a strategic direction.
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