Final Strategic Plan

Running head: STRATEGIC EVALUATION 1

STRATEGIC EVALUATUON 2

Strategic evaluation for Microsoft

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Strategic evaluation for Microsoft

Introduction

A strategic plan involves the strategies that an organization or a corporation puts in place to create a competitive advantage over its competitors. Every organization has to have a way in which it deals with the competition force in the industry that it operates in. strategic evaluation therefore is the analysis of the strategies used by an organization in all three levels to stay competitive in the market. This paper will therefore evaluate the strategies used by Microsoft in the business level, corporate, level and the global level for it to maintain its top position in the competitive hardware and software technology industry.

Potential business level strategies

Business level strategies are the strategies that are concerned with the organization’s position in the industry. For Microsoft, it is the leading organization in the hardware and software technology industry. Therefore, the following are the business level strategies that have enabled the company maintain its competitive power in such a competitive industry; they include;

· Cost leadership – most of the products of Microsoft have become a mandatory for many institution and also personal use. This is because Microsoft products are cheap as compared to its main competitor Apple. The low price does not compromise the quality of the products and services it provides. This is a strategy that Microsoft has been using and still continues to use to get a wide customer base in the industry. The more the customers, the more the revenue. Microsoft uses cost leadership strategy by;

I. Focusing on the middle class as its main target – the middle class represent the largest number of consumers and pricing is an important factor to them while purchasing products and services (Jeffery et al., 2017). Therefore, Microsoft sets prices that are reasonable and fair to the middle class and this is how it attracts more customers.

II. Frequently offering discounts to its products – this strategy enables Microsoft to achieve its sales target and also handle the competitive pressure from its rivals.

III. The company focuses on affordability and accessibility of its products all over the world – this strategy promotes its brand awareness, as well as increasing its sales hence creating a competitive advantage over its competitors.

· Differentiation –This is another strategy that is used to create competitive advantage at the business level. Microsoft uses differentiation in the following ways;

I. Emphasizing on unique products and product features

II. Investing a lot on research and innovation – Microsoft spends a lot on research on the growing needs of the customers and make innovations according to those needs hence creating difference with other players in the same field.

III. Its strong brand and experience in the field are differentiation factors – the company has the strongest brand all over the world and has highest experience in the technology field over its competitors. This potential strategy creates trust by its customers.

· Focus strategy – Microsoft’s main focus is on affordability and providing best value in the market. By focusing on the value of its products, the company revises its branding strategies and product red4esigning and repackaging to satisfy the customer needs. This has helped the company to maintain the biggest share in the market for long time.

Potential corporate level strategies

Corporate level strategies are strategies that affect the company as a whole. Theses strategies are meant to help the organization gain competitive advantage over other firms operating in the same industry. The strategies at this level include;

· Generic strategy – This strategy indicates the general approach to ensure that the company maintains its competitiveness. The generic strategy of Microsoft’s aligned with its intensive strategies for growth of the organization. The generic competitive strategy ensures that Microsoft’s computer hardware and software products are attractive to many customers amid a wide variety of competitors.

· Intensive strategies

I. Market penetration – this strategy involves selling company’s products in the markets where the company is operating currently. Currently, the company grows by intensifying its sales and marketing in its current markets in Asia. Also, Microsoft used differentiation to penetrate the market by making advanced and more innovative products and services to its customers.

II. Product development – this strategy focuses on development and sale of new products to facilitate its growth. The company keeps on developing new products based on the needs of its customers and this gives the company a competitive power (Jeffery et al., 2017). ,

III. Market development- this strategy helps the organization to grow through entry into new markets. So far Microsoft has is spread all over the world unlike its competitors.

IV. Diversification – this is an intensive strategy that supports growth through developing new businesses. For example, Microsoft acquired Nokia’s services and devices to re-enter the smartphone market hence diversifying its business (Warner, 2019). Therefore, the company can use this strategy in the future to develop new products and venture into new businesses.

Global level strategies for Microsoft

These are the strategies that create a competitive advantage of the company globally. They include;

· Transnational strategy – Microsoft sells its products and services in all parts of the world and the products are uniform in all the countries. The company ensures that all its customers all over the world enjoy similar products and services. This strategy helps the company to earn the biggest share in the global world.

· Multi-domestic strategy – this is a strategy by which Microsoft tries to achieve maximum local responsiveness by customizing its marketing strategy and product offering strategy to match different national conditions. This ensures that its products and services can be used comfortably by customers from all over the world (Lawless, 2017). This strategy gives it’s a competitive advantage over companies whose products are only suitable for a certain markets.

· Standardization strategy – this is a strategy that enables a company to treat the whole world as one market and that one product can meet the needs of people all over the world. Just like multi-domestic strategy, Microsoft is considerate of customers across the whole world.

Strategy recommendation

Microsoft has all it takes for the business to remain as one of the leading players in the hardware and software technology industry. To continue maintaining that position, I would recommend the company to establish more alliances with other firms to improve positive externalities. Creating alliances will enable the company to expand and become versatile in the technology industry because it will gain diversity in ideas which will enable the company to develop hence gaining more competitive power.

References

Jeffery, M., Aoyagi, I., & Kalletta, E. (2017). Marketing@ Microsoft: The Value of Customer Perception. Kellogg School of Management Cases.

Lawless, J. (2017). Global Diversity & Inclusion at Microsoft.

Warner, J. P. (2019). Microsoft: A Strategic Audit.