Microsoft Corporation
Microsoft is an American multinational company that is based in Washington DC. The company is a world leader in the technology industry and is well known for its software which includes the Microsoft Windows OS line that is run on most computers sold worldwide. The company also makes other software such as the Microsoft Office Suite that has the most applications in offices and computers all over the globe. The company also delves in making personal hand-held devices and X-box gaming consoles. Microsoft is the largest software developer regarding revenue and market share in the tech world. Microsoft has made some acquisitions over the years to remain competitive; these include taking over Skype Technologies and Nokia's devices section to enter the social media and mobile market respectively (Gates & Rogak, 2012).
The company was formed by Bill Gates and Paul Allen in 1975 and offered software solutions for computers at a time when the use of complicated user interface was common practice. The company was able to take over the personal computing section once they introduced the most user-friendly MS-DOS and subsequently followed this up with the Microsoft Windows OS line. The company went public in 1986, creating three billionaires and over 12,000 millionaires who bought the company's stocks. Microsoft currently reports an annual market capital return of over $380 Billion annually.
The Impact of Globalization and Technology on Microsoft
Globalization of technology has led to significant advances and changes within Microsoft. The company started off a small-time software developer and is now the world's leading software maker in terms of revenue and market share. The company’s global outreach has necessitated several changes to cater for the increased number of clients.
The company’s products are multi-lingual and can be used in over 60 languages. Someone in Japan using a Microsoft product will be able to derive the full potential of the product in the Japanese language. The use of many languages has increased the popularity of Microsoft products. A larger number of users have led to increased inputs in ideas. The corporation has received a lot of information on how to improve their products’’ efficiency.
Globalization has also led to increased competition. Many alternative software companies have launched similar products that compete with Microsoft. The competition is related to product cost, technological capability, and quick response. Cheaper software is available in various countries providing more competition to Microsoft. The company has launched its mobile market branch that is experiencing poor performance due to competition from mobile giants Google's Android and Apple's iOS.
Globalization has enabled quick transfer of knowledge and technology. Information is the most valuable asset when it comes to technological companies. The globalization of the brand has enabled quick dissemination of information and adoption of new technology. Microsoft is in a capital intensive market that needs to adopt new technology to quickly meet customer demands. Information and technology are transferred across borders in a matter of seconds. Globalization has increased the speed of dissemination and technology has increased the rate of evolution of products.
Industrial Organization Model
The industrial organization model takes a look at the external factors that might give Microsoft an above average performance in the industry. Microsoft has the biggest market share in the personal computer sector because of the cost effective infrastructure that has been put in place. Most personal computers come pre-installed with Microsoft Windows making it the most widely used OS in the world. The company also maintains its high market share because of the use of user-friendly UIs. The company dominated the computer market in the 1980s and 1990s because it offered better and easier to use features.
Resource-based Model
This model takes a look at the internal resources at the company’s disposal and relates them to above average returns. Microsoft has amassed resources in the form of human capital, technology, and knowledge that makes it a global leader in the technology industry. The labor force is the most valued aspect of the company. Bill Gates initiated a recruitment process that aims at hiring only the best minds to work in the company. In an industry where innovation leads to big profit, it is clear to see how this policy has helped the company grow. The company needs to come up with more innovative products to curb the threat imposed by its competitors such as Apple and Samsung.
Vision Statement and Mission Statement
Microsoft launched a new mission statement in June 2015 to help it in realizing its vision of connecting all people with computers. The company's mission statement is to empower every person and organization to achieve more(Hay, 2015). This mission statement leads the company's charge at making products that can be used across devices and ensure ease of use. Microsoft aims at achieving its mission statement by creating software that can be used in PCs, tablets and phones through which individuals and organization can access their data. The information in all these devices can be backed up on its cloud platform.
Stakeholders
Microsoft's stakeholders include its management, its employees and the clients of the company. The management plays a crucial role in the success of the enterprise. The management of Microsoft lay out strategies that boost development and enhance the performance of the group. The company is led under the management of John Thompson, who is the chairman of the enterprise. Mr. Thompson's predecessor, Bill Gates, had laid out plans that saw the company hire bright minds and develop user-friendly software aimed at making computing technology accessible to everyone worldwide. The new chairperson has come up with strategies to increase the number of platforms that users can access Microsoft software. Both of these strategies have served to increase the market share and growth of the company.
The employees play a crucial role in the success of Microsoft Corporation. The company has a very selective recruitment process that aims at employing the best minds. Technology is a very volatile industry where innovation determines the level of success that a company will have. Microsoft faces stiff competition from Apple and Google in the software market and therefore a good, and creative workforce is crucial. The company hires the best employees who increase the efficiency, diversity and quality of products made.
The consumer is the biggest determinant of the success of any company. Microsoft aims at meeting the insatiable needs of its clients through innovative and game changing products. Consumers are spoilt for choice when it concerns technology goods and software. The need for quality and user-friendly software has seen the growth of Microsoft from a small start-up to a global leader in the tech industry. Consumers determine which products need to be made and to what specifications. The tech world is a numbers game in which the company with the largest client base will be the one with the best returns. Microsoft has been able to gain a large customer base with a large loyalty to its products.
References
Gates, B., & Rogak, L. (2012). Impatient optimist: Bill Gates in his own words. Melbourne, Vic: Hardie Grant.
Hay, R. (2015, June 25). Satya Nadella lays out new mission and vision for Microsoft | Windows content from SuperSite for Windows. Retrieved from http://m.winsupersite.com/windows/satya-nadella-lays-out-new-mission-and-vision-microsoft
