ATTN: PROF TUTOR Strategy and Positioning Analysis Part 2

All businesses, both large and small, up and coming and existing, must continuously analyze their position and strategies in the business world to maintain productive marketing structures, boost sales and maintain opposition with competitors. Especially in the innovative, always changing world of technology; weaknesses, strengths, threats and opportunities must be well-known to move ahead and maintain a positive brand for any successful company. Microsoft has had to do just that, strategize based on its weaknesses, strengths, threats and opportunities, to produce its latest competitive, yet successful, Surface Book.

Microsoft Background, Industry and Products

Microsoft is an American based company grounded in Redmond, Washington United States and was founded in 1975, by Bill Gates and Paul G. Allen. After running the company for five years, Microsoft came up with an operating system named MS-DOS, better known as the Microsoft Disk Operating System ("Microsoft.com", 2015). MS-DOS is still used today. Microsoft developed numerous products that have maintained success; Windows, Microsoft Office, Internet Explorer, and Xbox are just a few (Bellis, 2014). In 2001 at the Comdex Show in Las Vegas, Bill Gates described a vision of his for the future of computers, and introduced a prototype Microsoft Tablet device, predicting that it would be the most used type of PC sold in America (Ranger, 2013). In 2012, Microsoft’s CEO Steve Ballmer introduced the world to their Microsoft tablet called the Surface, a product designed to take over laptops as a tablet capable of touch screen features that were designed entirely to exploit the capabilities of the new Windows 8 operating system. The surface has been around for a few years now, and it has been the product of choice for Computer Aided Drafting (CAD), picture editing, and drawing (Chapman, 2016).

Microsoft Surface Book

The Surface Book was introduced in 2015 alongside the Surface Pro 4, however the Surface Pro 4 was designed for people looking to run it as a laptop, because it has the capabilities of running desktop programs. The Surface book is capable of running all the same programs as the Surface Pro 4, and the same programs as the Surface 3. These programs include video editing in Premier Pro, which is one of the most utilized video editing software. It can also handle other professional software such as Adobe Creative Cloud (ACC), a program manager that manages various programs such as picture editing, drawing, and video editing programs. ACC is one of the most common used program by photographers, film editors, and architects. If you are familiar with any of these programs, then you will understand that these programs may not run smooth on any laptop since they use a high degree of CPU usage which requires a significant amount of RAM.

The Surface Book has a 13.5” display which has 6 million pixels unlike one of its main competitors the MacBook Pro 13, which has 4 million pixels. Another feature is that you are able to configure the Surface Book in three different configurations. You may use it as a regular fold up laptop, detach the keyboard (to make it lighter) and use it as a tablet or there is the option to leave the keyboard, which also folds behind the screen to give it a nice angle when used on a flat surface. An additional key feature is that the Surface pen has 1024 levels of pressure sensitivity. As you press harder on the tablet, it may apply more ink to a picture drawing giving a similar effect as a marker or a pencil used on paper. The pen has no lag effect; this means that as soon as you draw a line, it produces the line instantly. Lag is one issue that is encountered on previous touchscreen devices and some of Microsoft’s competitors ("Microsoft", 2016).

SWOT analysis

A SWOT analysis for Microsoft and the Microsoft Surface Book lies in its dominance of operating systems in the market. It is estimated that over 90% of the PCs run various versions of Microsoft Office. With regards to the Microsoft Surface Book, it has a more powerful display of 13.5-inch Pixel and a resolution of 3,000 x 2,000 which is superior to those of Apple, its closest competitor, as the latter company has 13.3 Pixel and 2560 x 1600 resolutions (Purkayastha & Sharma, 2016). The company’s main weakness is its lack of innovativeness, as its products compare dismally to those of its competitors in terms of creativity. Microsoft Surface Book’s main weakness is its high price that may deter many customers from purchasing it, considering that other companies like Apple and Google have similar versions of the Microsoft Surface Book at lower prices. Microsoft’s main opportunity is the increased demand for devices that have high functionality. Consumers for technological devices have been on the lookout for devices such as the Microsoft Surface Book that can enhance usability. The main threat Microsoft is facing is the emergence of competitive products in the market. Consumers’ choice of technology devices is swayed by price and functionality, and the Microsoft Surface Book may face stiff competition from similar products by other manufacturers. Another threat is the production of counterfeit products that make their way into the market, a factor that will negatively affect the success of the Microsoft Surface Book due to loss of sales to the counterfeit products (King & Peterson, 2013).

Competitive Analysis

Identifying competitors and highlighting their strengths and weaknesses is a critical part of the strategy and positioning analysis. One of Microsoft’s main competitors is Apple, a company that has dominated the technology industry since the 1970s. Currently, Apple holds the largest market share in the technology industry as it stands at 33.3%. On the other hand, Microsoft’s market share is currently at 25%. Secondly, Apple has higher profitability than Microsoft, as it accrued 37.4 billion in the first quarter of 2016, while Microsoft accrued 17.7 billion, a figure that is 60% lower (Yahoo Finance, 2016). However, Apple’s products are highly priced when compared to Microsoft, a factor that gives Microsoft a competitive advantage over Apple. The Microsoft Surface book will face strong competition from Apple’s MacBook Pro. The iPad triumphs over the Microsoft Surface Book with regards to portability, as the latter is thicker. However, the main advantage of having a Microsoft Surface Book is that its functionality surpasses the iPad, as it has keyboard functionality, and it can run full desktop applications like Microsoft Office and Photoshop. Microsoft’s main advantage over Google is that it has a higher market share, but Google is a strong competitor to Microsoft as both companies target similar customers (King & Peterson, 2013). Currently, Google’s ChromeBook Pixel is considerably more affordable, as the Microsoft Surface Book may cost $2,000 while the ChromeBook Pixel can be purchased at $1,000 (Yahoo Finance, 2016).

Demographics

The Surface Book targets all demographics, especially people that are always on the run. For people frequently on the run, the battery of this surface book lasts longer than any other laptop or tablet. This Surface Book not only targets people in business, but any person interested in technology or those solely searching to have a product for convenience purposes. Having an additional charging station on a Surface Book, can be one more reason to purchase one.

Psychographics

As years go by, the competition in the technology industry is growing. The demand for new systems and more convenient laptops is constantly expanding. Consumers are always looking out for new devices in the market, at a lower price and better quality than the last. The Surface Book is a 2 in 1 device, a laptop and a tablet. The Surface Book was released in October of 2015. Consumers were able to preorder this Surface Book and have it delivered to the convenience of their home, but also had the option to purchase this Surface Book online or at any retail store, such as the Microsoft store, Walmart, Best Buy, Amazon, etc. The Surface Book advertises the velocity of speed, innovation and convenience. Microsoft’s competitors, Apple and Dell, do offer similar products, but do not advertise the same exact qualities.

Behavioral Factors

There are many factors in behavior for a consumer. They want to know how much it is going to cost them, what kind of quality will they be getting in a product, how often will they need maintenance, and what special promotions or deals can they receive. The Surface Book is guaranteed to be one of a kind and the way the device is presented can sway a consumer’s decision to choose this product. The convenience of the Surface Book is how Microsoft maintains the products success.

Geographic

All technologies have grown in popularity and productivity over the years. Online shopping and preordering has made a dent in sales. Being able to order almost anything online, has made consumers more aware of the competition out there. In the past it was not as convenient to buy, like now. The product can be delivered to the footstep of a customer’s home. Being able to market to the right people and customer base taking age, profession and lifestyle into consideration is important. Many want the newest thing out there, and this may vary depending on profession, age, or whether they are a student in need of the latest and greatest technology to complete projects and papers to the best of their ability. The features that the Surface Book promotes is nothing like any other laptop in the market. Targeting all people is the concept of this device. Showing how efficient and reliable this Surface Book can be, showing the consumer how less stressful their lives can be by utilizing the surface book for what it is worth.

Positioning Statement

Microsoft’s Surface Book is convenient, reliable, efficient and offers many applications that help make daily uses of this device more successful and less stressful. It runs quicker, does not lag when using the pen, and can be used in tablet form, with the keyboard folded under or at a normal laptop positioning. Marketing to a wide variety of people; from college students to a business owner, a photographer to a marketing director. Offering programs such as Premier Pro and Adobe Creative Cloud, which are much a necessity to modern photographers and marketing departments and directors. These programs alone are two great selling points for the Surface Book’s, making photo editing and drawing quicker, easier and less complicated. While putting albums, pamphlets or new brochures together these programs can save time and can aide in creating professional end products for a company. Other companies may offer a product that is same in shape or size and even compare in price, however the convenience of this Microsoft product, offered programs and battery life keep the Surface Book in its own niche of technological devices. The Microsoft Surface Book offers portability, productivity and substantially more power and battery charge than that of the competitors’.

Microsoft has been a prosperous company for over forty years, and with the proper maintenance in regards to strategy and position in the technology realm they will have continued success. The Surface Book is just one of many efficient products produced by such a highly ranked company. Staying competitive, and marketing the many reasons why their products are more productive than those of the competitors, Apple or Dell, will keep them above the rest. Who does not want the latest and greatest piece of technology at a reasonable price?

References

Bellis, M. (2014). Microsoft - History of a Computing Giant. Retrieved from

http://inventors.about.com/od/CorporateProfiles/p/Microsoft-History.htm