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Final Project of GLOBAL MARKETING
Group Members :1. Ali Hassan
2. Raheem Faraz Khan
3. Usman Asghar Cheema
4. M Farhan Zaidi
Submitted To :Mr. Waqas Qurashi
Due Date :7/01/2008
1
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ACKNOWLEDGEMENT
A HUMAN BEING CAN NOT CREATE ANYTHING WITHOUT THE HELP AND
GUIDANCE OF ALLAH ALMIGHTY. ALL PRAISES AND GRATITUDE TO
ALMIGHTY ALLAH WHO BESTORD UPON US THE INTELLECT AND
SOUND SENSE OF CONCEPTION FOR HIGHER IDEAS OF OUR LIVES.
WE EXPRESS SINSERE GRATITUDE TO OUR RESPECTED TEACHER FOR
HER CONTINOUS SUPPORT, GUIDANCE, SUGGESSIONS,
CONSTRUCTIVE, CRITICISM, ENCOURAGEMENT, AND PERSONALINTEREST.
WE ALSO THANK ALL THOSE PEOPLE WHO COPERATED WITH US IN
THIS PROJECT AND SPECIAL THANK FOR A.RAFEH FOR HELPING US IN
THIS PROJECT. WE HOPE THAT PROJECT IS ACCEPTABLE TO THE
TEACHER.
WE HOPE THIS PROJECT WIL BE INFORMATIVE TO ANYONE WHO
REFFERS TO IT.
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DEDICATIONSDEDICATIONS
We as a team would like to dedicate our project to our parents who have been an
inspiration for us throughout our lives. Last but not least our teacher has been a
great help for us so we would also like to dedicate our effort to our respected
teachers.
INTRODUCTION to MICROSOFT
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Historical Background:Microsoft was formed by a Harvard College Dropout called Bill Gates. Bill Gates
was born William Henry Gates III on October 28, 1955. He was born to a family
that was successful in business, living a comfortable upper middle class life inSeattle, Washington.
Early in his elementary school days, Bill Gates quickly shot to the head of the
class, consistently outscoring his peers in most subjects, but especially math and
science. His parents soon enrolled him in Lakeside Prep School, where the
atmosphere was intellectual enough to stimulate the young Gates. This move to
Lakeside would prove historic, for it was here, in the spring of 1968, that he was
introduced to computers.
Paul Allen saw the first microcomputer on the cover of a magazine. He bought
the magazine and went immediately to show it to Gates. They realized the time
was right. The home PC business was about to explode and someone would
need to provide software for the machines. By stretching the truth somewhat,
Gates arranged for a meeting with the Altair manufacturers. He had called them
to let them know he had a program written for them. After the appointment was
made, Gates and Allen stayed up for nights, feverishly writing the program he
had promised. It worked perfectly at the meeting, and everyone was impressed.
They sold the program, and saw that this was something they could do for real.
Within a year, Gates had dropped out of Harvard and Microsoft was formed.
The company went through some rough first years, but eventually was able to
license MS-DOS to IBM. The IBM PC took the public by storm, and its success
signaled the success of Microsoft. Microsoft continued writing software, for
businesses as well as the consumer market. In 1986, the company went public,
and Gates became a 31-year old billionaire. The next year, the first version of
Windows was introduced, and by 1993 a million copies per month were being
sold.
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In 1995, Gates knew that the Internet was the next area of focus, and the course
of Microsoft shifted dramatically. The popular Internet Explorer browser soon
became a bestseller. Today, Microsoft software is everywhere.
In the beginning, www.microsoft.com was just one computer tucked under a table
at the end of a long hallway. It was designed to test Microsoft's first 32-bit
Windows implementation of TCP/IP, the software plumbing in Windows that
enables internet communication.
Microsoft legend says that this machine once lived under the desk of the site's
first official administrator, Mark Ingalls, but like most legends that's only half true.
A staging server for microsoft.com was actually housed beneath his desk, and itwas relocated because too often Ingalls reached down and turned off the wrong
machine by mistake.
Today, microsoft.com is the fourth-largest Web site powered by internal and
external servers all over the world and visited by an average of 5 million
customers a day. How the site got where it is now in just six high-velocity years is
a story of smart decisions, some very public snafus, and all in all, a story we
thought you might like to read as we close out 1999.
Six years may not sound like a lot of time, but in "Internet time" that's almost half
a lifetime. Internet time is sometimes likened to dog years - the first year is like
14, and every subsequent year is roughly equivalent to seven virtual years. By
that reckoning, microsoft.com is pushing 50.
As we prepare to enter the year 2000, it makes sense to reflect on all that hashappened since 1994 - the year that microsoft.com launched its public Internet
Web domain with a home page. This isn't meant to be an exhaustive account of
the early days of Microsoft on the Web, just a short compilation of history and
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reminisces by some of the "old timers" who helped build the foundation for
microsoft.com.
Microsoft's mission :
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To enable people and businesses throughout the world to realize their full
potential.
Our ValuesAs a company, and as individuals, we value integrity, honesty, openness,
personal excellence, constructive self-criticism, continual self-improvement, and
mutual respect. We are committed to our customers and partners and have a
passion for technology. We take on big challenges, and pride ourselves on
seeing them through. We hold ourselves accountable to our customers,
shareholders, partners, and employees by honoring our commitments, providing
results, and striving for the highest quality.
Competitive Advantage
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the perception of a guarantee, Fannie Mae and Freddie Mac are able to borrow
money at reduced interest rates. That and other advantages kept Fannie Mae in
the Berkshire Hathaway portfolio for many years.
The early-mover advantage
Although first movers can get valuable traction in markets, they also tend to
make costly mistakes, in terms of both money and time. Companies that follow
closely behind the trailblazers, though, can gain many of the benefits of being
early to market while avoiding some of the pitfalls.
A classic example is Microsoft (Nasdaq: MSFT ). Although Apple introduced the
first personal computers, it limited itself by trying to do everything -- building the
computers, creating operating systems, and developing software. Microsoft,
meanwhile, focused exclusively on the operating system, and MS-DOS soon
emerged as the default standard for personal computing. Microsoft used this
toehold to launch itself into productivity software, and who better to write software
for an operating system than the company that built it? Microsoft was not the first
mover, but its popular Office suite soon left competitors in the dust. The
company's conquest of Netscape in the Web browser market followed a similar
story. In short, Microsoft doesn't invent; it innovates -- and it's done that very well.
Size
In many cases, bigger is better. Large warehouse stores like Costco (Nasdaq:
COST ), Home Depot (NYSE: HD), and Wal-Mart now dominate the retail
industry that used to be made of small, local stores. They never had a chance
against the bigger and more efficient big-box outlets.
But the size advantage does not stop there. Because Wal-Mart is such a largecustomer, it has significant sway over its suppliers. In addition, Wal-Mart has
deep pockets that allow it to underprice its competitors. It even sells some items
at a loss to squeeze out the competition. So the size advantage tends to feed on
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itself -- more stores and better operations mean better prices for more customers
because of increased bargaining power over suppliers.
Conclusion
Competitive advantages are like a seatbelt for your investments. They allow a
company to remain in more control of its destiny when facing the uncertainties of
the future. And although competitive advantages don't guarantee that a company
will perform without failures, they do make it easier for a company to recover
from its missteps. Identifying meaningful competitive advantages in your
investments will therefore help you protect your investment dollars.
Target Market
Microsoft is focusing on the business organizations to individuals home Pcs they
basically want to give the best possible solutions to the work of business to
individuals work. Because they think that this era is digital era so they want to
make everything digital to solve any kind of problem or work so that everyone
utilize his work in best possible manner. For this they are trying to innovate the
best possible solutions for organizations and individuals.
SWOT Analysis
All this of course does not guarantee sound sleep to Mr. Bill Gates for too long.
Guarantee of success happens in no business, not even in a long-term
monopoly. Competition, technology compatibility and integration needs, pricing,
delivery and service parameters can precipitate substantial threat to Microsoft
and afford opportunities for other players. It is not that Microsoft is not aware of
this. It is focusing on R&D and business strategies to sustain market shares in its
own way. But is it enough and is it taking the right direction is the big question.
Others have started to seriously innovate and compete. For example changing
technologies like Wireless Communications and Networking (WAN) etc do not
complement Microsofts existing competencies. Over the next five years, in all
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developed countries, the majority of people will be connecting through broadband
and interacting with information through many devices: PCs at work and at home,
portable PCs, Tablet PCs, and pocket devices such as the phone, evolving from
simply a voice device to a data device. Having all these devices work very well
together and be secure and up to date are very significant challenges indeed.
Therefore there is adequate scope and opportunity to review, audit and
understand through SWOT analysis the company and its competencies and
facilitate a new debate on possible corporate business models and revised action
plans.
SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues. It has to be a
continuous rather than a need based exercise.
Strengths
A) Key Strengths
Strong fundamentals-Microsoft has become synonymous to computers
over the last two decades. It has a massive market share and has
recorded impressive sustainability and growth even in the face of disasters
like 9/11.Impressive research base takes care of business cycle changes
and product life cycle limitations
Strategic tie-ups and Business Process Outsourcing both to utilize
technocrats all over the world and to optimize costs
Multinational Corporation operating through regional subsidiaries giving it
a truly global perspective of cultural, ethnic and linguistic differences inmore than 60 countries. This certainly affords a better business perception
and applications too
Relatively rapid product development processes that allow for timely
updating and release of new products
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Software products have high brand recall and recognition, generic
corporate and consumer acceptance (Word, Excel, PowerPoint, Access),
and numerous powerful features that are in use worldwide, thereby
promoting standardization and competitive advantage through their ease
of integration and cost-effectiveness
B) Other Strengths
Applications and operations divisions complement each other well
Recently created online service network divisions (MSN)
Flexible workforce through contingent workers for special projects
Very good Human Resource policies, in addition to good compensation,
an opportunity for employees to do well financially through stock
purchases Neptune, is a Window's interface and is an example of smart software.
B) Revenues and profits rising at 30% a year with merger/acquisition or
investment in 92 companies over the past few years
Top rating from Fortune for best company to work at and most admired
company
Windows series, and Windows NT are globally known as the PC desktop
operating system with a market share of above 80% Participation in socially relevant philanthropic work in various countries
has been a significant value addition in terms of corporate PR
Weaknesses A) Major Weaknesses
Hardware manufacturers need to be motivated to pre-install Microsoft's PC
operating system. Although training of computer professionals and workers is by
and large done on Microsoft Architecture and this in turn creates a situation of inevitability for hardware manufacturers, their default support cannot be
assumed.
Peripheral player in the Internet space and few products for Internet
applications
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Local language adaptations are bound to favorably sustain growth. In India for
example most of the population uses Hindi language and applications software in
Hindi is a certain bet for success given the population and economic growth
process in the offing
Cheaper Internet connectivity and global telecommunication costs open new
markets and opportunities. Broadband access and affordable wireless
communication tools does present a plethora of opportunities for making gainful
strides in these key areas
Strategic alliances with Mobile phone applications and exploitation of personal
digital assistants provide Microsoft with opportunity in a market where it currently
has little or no significant presence.
Other opportunities
Popularity among people for Internet access, information, business and
applications and PC is still the widely used tool for it
Piracy control measures in various countries shall mean additional revenues
Internet security tools and reinforcement of LAN applications are going to be
useful value additions to Microsofts product mix
ThreatsA) Palpable Threats
IBM, Sun Microsystems, Oracle and others have collaborated on new platform
technologies for their hardware that replicate much of the value of Windows
Apple and Linux threaten Microsoft's huge market share of the desktop
operating market
Sun Microsystems, Netscape, Oracle, IBM, AOL, and other companies moved
into the Internet space almost a decade ago and defined it while Microsoft failed
to anticipate its growth, value or popularity
Demand for application/operation software and hardware is a function of
fluctuating exchange rates of currencies can negatively impact revenues in the
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global marketplace
Software piracy of commercial and consumer applications software on a large
scale threatens revenues especially in the face of free products like Linux.
Other Threats .
Hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL, and
Apple) are issuing their own pre-bundled programs on their own hardware
Linux influence is growing steadily
Unix dominates high-end mission-critical applications and its customers
do not believe Windows can handle these operations
Personal computers, mobile-phones, personal digit assistants,
entertainment-oriented hand-held computers, and similar wirelessproducts for Internet access do not require Window operating system
products
Rapid development of mobile devices that will displace/replace personal
computers.
Recession or economic slowdown in the world impacts personal computer
equipment sales and their need for an operating systems
Technology life cycle is akin to product life cycle and needs to sustain
cash cow stage with updates and alterations/value additions and any
laidback approach to this crucial need shall have a debilitating effect on
future prospects
ConclusionSWOT is an important marketing management tool. . It can be used in
conjunction with other tools for audit and analysis, such as PEST analysis and
Porter's Five-Forces analysis to enable prospective R&D in marketingIn the light of what has been discussed about Microsoft, it is obvious that present
times are crying for deliberation and brainstorming to ensure continued success
of the company. Market forces are dynamic as is technology and innovation.
The corner stone or benchmark in business is market share. There are four ways
to look at it.
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-Improving market share by encashing opportunities of new markets and market
segments.
-Retaining market share in the face of threats and challenges
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-Improving market share by utilizing value addition/new application opportunities
of existing customer base.
-Product diversification and innovation leading to altogether new role and share
in the market. This has a telescopic effect on gross market share rather than on
limited niche share.
In the context of Microsoft all the above possible strategies have been discussed.
No doubt the company still enjoys pre-eminent position in its niche market. In theforeseeable future no major threat is perceived to this position. But the fact is its
niche market of today is threatening to lapse into dilution and redundancy due to
rapid overshadowing by Internet and Wireless devices and applications. This is
not of course going to make the company obsolete by any stretch of imagination.
However there are perceptible warning signals, which the company will do well to
recognize, invest in right research and innovation and sustain its leading edge in
spite of the market dynamics and increasing competition. The focus areas haveto be in tune with evolving technologies and applications. As marketing by
definition is to identify customer needs and to satisfy them, the company cannot
always hope to thrust its products and applications on the customers.
Microsoft has the resources to do it. It should be willing to just do it
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