CONTENTS

1. INTRODUCTION TO THE
COMPANY
2. PRODUCTS
3. MARKETING STRATEGIES
4. HUMAN RESOURCE
POLICIES
5. SWOT ANALYSIS
6. CORPORATE SOCIAL
RESPONSIBILITY
 Introduction
Microsoft Corporation (MS) is an American multinational technology company with
headquarters in Redmond, Washington. It develops, manufactures, licenses, supports and
sells computer software, consumer electronics, personal computers, and related services. Its best
known software products are the Microsoft Windows line of operating systems, the Microsoft
Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products
are the Xbox video game consoles and the Surface lineup of touchscreen personal computers. As
of 2016, it is the world's largest software maker by revenue,[3] and one of the world's most
valuable companies.[4] The word "Microsoft" is a portmanteau of "microcomputer" and
"software".[5] Microsoft is ranked No. 30 in the 2018 Fortune 500 rankings of the largest United
States corporations by total revenue.[6]

Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and
sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating
system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The
company's 1986 initial public offering (IPO), and subsequent rise in its share price, created three
billionaires and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s,
it has increasingly diversified from the operating system market and has made a number
of corporate acquisitions, their largest being the acquisition of LinkedIn for $26.2 billion in
December 2016,f ollowed by their acquisition of Skype Technologies for $8.5 billion in May
2011.

As of 2015, Microsoft is market-dominant in the IBM PC-compatible operating system market

and the office software suite market, although it has lost the majority of the overall operating
system market to Android.[9] The company also produces a wide range of other consumer and
enterprise software for desktops and servers, including Internet search (with Bing), the digital
services market (through MSN), mixed reality (halogens), cloud computing (Azure) and software
development (Visual Studio).

Steve Ballmer replaced Gates as CEO in 2000, and later envisioned a "devices and services"
strategy.[10] This began with the acquisition of Danger Inc. In 2008,[11] entering the personal
computer production market for the first time in June 2012 with the launch of the Microsoft
Surface line of tablet computers; and later forming Microsoft Mobile through the acquisition
of Nokia's devices and services division. Since Satyr Nacelle took over as CEO in 2014, the
company has scaled back on hardware and has instead focused on cloud computing, a move that
helped the company's shares reach its highest value since December 1999.
 In 2018, Microsoft surpassed Apple as the most valuable publicly traded company in the world
after being dethroned by the tech giant in 2010.

Windows
 Windows 10

 Windows 10 Mobile

 Windows Mixed Reality

 Windows Insider Program

 Windows 8.1

 Windows RT 8.1

 Windows 7

 Windows Server

 Windows for IT administrators

 Windows Update

 Windows accessibility

 Internet Explorer

Office
 Office for home

 Office 365 for business

 Excel

 Word

 Outlook

 Outlook 2016 for Mac

 PowerPoint

 OneNote

 Access

 Publisher

 Office for iPhone and iPad

 Office for Android

 Office for Windows Phone

 Marketing

In 2004, Microsoft commissioned research firms to do independent studies comparing the total
cost of ownership (TCO) of Windows Server 2003 to Linux; the firms concluded that companies
found Windows easier to administrate than Linux, thus those using Windows would administrate
faster resulting in lower costs for their company (i.e. Lower TCO). This spurred a wave of
related studies; a study by the Yankee Group concluded that upgrading from one version of
Windows Server to another costs a fraction of the switching costs from Windows Server to
Linux, although companies surveyed noted the increased security and reliability of Linux servers
and concern about being locked into using Microsoft products. Another study, released by
the Open Source Development Labs, claimed that the Microsoft studies were "simply outdated
and one-sided" and their survey concluded that the TCO of Linux was lower due to Linux
administrators managing more servers on average and other reasons.

As part of the "Get the Facts" campaign, Microsoft highlighted the .NET trading platform that it
had developed in partnership with Accenturefor the London Stock Exchange, claiming that it
provided "five nines" reliability. After suffering extended downtime and unreliability the LSE
announced in 2009 that it was planning to drop its Microsoft solution and switch to a Linux-
based one in 2010.

In 2012, Microsoft hired a political pollster named Mark Penn, whom the New York Times called
"famous for bulldozing" his political opponent as Executive Vice-President, Advertising and
Strategy. Penn created a series of negative ads targeting one of Microsoft's chief
competitors, Google. The ads, called "Scrolled", attempt to make the case that Google is
"screwing" consumers with search results rigged to favor Google's paid advertisers,
that Gmail violates the privacy of its users to place ad results related to the content of their
emails and shopping results which favor Google products. Tech publications like techcrunch
have been highly critical of the ad campaign, while Google employees have embraced it.
Bill gates Microsoft has been an iconic brand of our era. There are 100’s of lessons which
business graduates can learn from Microsoft. However, here we present 8 marketing
strategy lessons from Microsoft.

1) Network Marketing

The first and most known strategy of Microsoft is Network marketing. This is because each
windows product is compatible with another windows products. Your office documents can be
opened on most computers because of the number of peopleusing Microsoft. Thus it has
established the concept of Network marketing perfectly.

2) Regular product launches

Microsoft is present almost everywhere, be it the music market with its Zune, the computer
peripherals market, it is the market leader in operating systems, it has its own tablets, it has
revolutionized gaming with XBOX 360, it is now involved in Cloud computing and it generally
comes out and gives tough competition to the current players in the market. This expansion helps
build up the deep pockets of Microsoft.

3) Follower strategy

One problem in the strategy of Microsoft has been that it has had a follower strategy in the past
decade or more. It has rarely come out with an innovation. Check “Microsoft office” from 2003
to 2010. You will see that except for graphics, they have been almost the same products over and
over again. In hardware too, there has hardly been an innovation in Microsoft. Ipod launched in
2001 and Zune launched in 2006. Need we say more.

4) Learning and adapting

If you look at Windows, you will find that XP had the most security holes, Windows Vista had
several too, Windows 7 has quite less security problems and Windows 8 too is expected to be
even better in security. Thus Microsoft is learning fast and adapting to the environment.
Microsoft knows that nowadays people need security and it is providing the same to them.

5) Build a cash cow

Even though I am repeating this point, but this is important. Microsoft has a cash cow –
operating systems as its backup. And its whole empire is built on the basis of this cash cow.
6) Be customer focused

There are a lot of jokes about the customer service of Microsoft but if you really look at it, then
the reason why Microsoft is actually working is because help is available offline as well as
online. Your computer might crash for any reason, but generally you are able to specify the
reason for the crash and if you are a techie you will be able to rejuvenate it. Even a 10 year old
nowadays knows how to correct windows

7) Ease of use

Make products which can be used by the youngest to the oldest in the easiest manner.
Like Nokia in mobile phones, Microsoft OS is known for its ease of access. The start button has
been revolutionary.

8) Build brand equity

Today Microsoft is amongst the top 10 companies in terms of its brand equity due to many
different consumer and business to business products that it has. Building such a high brand
equity has paid off for Microsoft with it becoming a highly trusted household name.

From the time Windows began to upgrade, beginning with the software of Windows Vista, and
then later with the program upgrade of Windows 8, complaints have been “more than not” when
it comes to reasons of being user-friendly. For example, online students have had to pay extra
costs to “downgrade” their programs back to Windows 7 in order to retrieve school material in
addition to constructing school documents.

With consideration that ” Even a 10 year old nowadays knows how to correct windows,” is not
always the “consumer population.” In appreciation of the population who is not computer savvy
as described in this article, please revisit the consumer population in order to better support users
who maintain the preference of personal computer uses of Microsoft, over your competitors.

I have had to replace my laptop to an HP2000 Notebook which came with Windows 8. Because
of the non-user friendly “tiles” in addition to preloaded programs that were unnecessary, I had to
pay extra for the following “changes:”
Changed from 32 bit to 64 bit;
Changed from Windows 8 programs to Windows 7 programs;
Installed Microsoft Office 2010 Professional

USER FRIENDLY SUGGESTION:

When a customer goes to a retail business to purchase a new desktop or laptop computer allow
the customer the option to choose what program grades work best for that customer’s needs, in
an “ala cart” selection.
 HUMAN RESOURCE POLICIES

Culture, Diversity & Inclusion

Modern HR is a key partner in creating an environment where employees can do their best work

Employee Experience, Collaboration & Innovation

Modern HR is focused on the employee experience from recruiting through retirement

People Analytics & Insights

Modern HR uses data to make informed decisions

Talent, Learning & Skills

Modern HR is helping employees become “learn-it-alls”

No company can achieve sustained success without a firm foundation on which to build. The
foundation often manifests itself in policies and procedures that govern the decision -making
process of the staff and thus direct the company towards achieving its goals. Microsoft has an
extensive foundation--lots of policies and procedures--a sample of which reveals the core
values of the company.

Values
Microsoft designed its principles and procedures on the set of values the board claims for the
company overall and for the staff therein employed. Microsoft believes in honesty and
integrity, in being respectful with others while encouraging growth and improvement, in
having a passion for customer technological needs and desires, and in being accountable to
not only the customers but also to the staff and investors. Microsoft believes in dreaming big
and following through on those dreams while still maintaining a critical eye on the company's
actions

Standards of Business Conduct

Microsoft operates under its self-devised Standards of Business Conduct which derives from
the company values. Although the Standards of Business Conduct are fairly extensive, the
document clearly states that it does not and cannot include specific information for every
possible contingency but rather should serve as a guidepost in decision-making for the staff.

Regulatory Compliance
It is Microsoft policy to maintain accurate and up-to-date knowledge of the laws and
regulations that govern the corporation worldwide. If at any time a member of the staff
becomes aware of a violation of regulation or law it is the employee’s responsibility to report
the violation to either Human Resources, management, the Director of Compliance, Law and
Corporate Affairs or the Business Conduct Line.

Lobbying
While adhering to federal laws regarding lobbying, Microsoft protects shareholder interests by
actively lobbying for any issues in Congress that may affect the direction or future of the
company.

Export Policy
The United States government restricts the exportation of certain technology including
software and hardware. Microsoft complies with this policy in order to help protect national
security and to conserve limited resources.

Fair Information Practices

Aware of its role in the communication industry, it is Microsoft policy to produce and maintain
an online environment that is safe for Internet users. Included in this policy is an educational
initiative to better help consumers use the Internet wisely.

Diversity
It is Microsoft’s belief that a diverse workplace increases the successful recruitment of talented
staff members who will prove to be an asset to the company. Therefore, Microsoft actively
strives towards diversity while complying with Equal Opportunity regulations.

There is no doubt that Microsoft is one of the leading technology giants in the
world. Microsoft windows OS is one of the most user friendly operating system,
one of the reasons for its very fast adoption and usage across the world. It is also
the reason that Microsoft is one of the toughest brands in the software market to
beat. It is literally dominant due to its Office software and Operating system.

Here is the SWOT analysis of Microsoft

Strengths in the SWOT analysis of Microsoft

1. Reputed Brand: Microsoft is one of the fortune 100 MNC operating through
regional subsidiaries to minimize cultural differences in more than 100 countries.
Microsoft Corporation (Microsoft) is one of the leading providers of software, and
hardware productsand services. The company focuses on developing,
manufacturing, licensing, marketing and supporting software products worldwide.
2. Technologically advanced company: Microsoft is always known as a catalyst in
the tech-world. Prioritizing innovation and optimization through strong research
and developmentactivity. It operates Microsoft Research, one of the world’s largest
computer science research organizations which work in close collaboration with top
universities around the world to advance the state-of-the-art in computer science
sector.
3. Product Portfolio: Microsoft offers a comprehensive range of software, services,
and hardware solutions across different customer classes, which enable it to enjoy a
leading market position. Microsoft generates revenue by developing,
manufacturing, licensing, and supporting software and services across a wide
variety of computing devices. Microsoft also provides consulting and product and
solution support service, and trains and certifies computer system integrators and
developers.
4. Extensive distribution system: Company maintains a strong distribution and
marketing network which leverages operational performance.
Microsoft markets and distributes its products through three major channels namely
OEMs (Original Equipment Manufacturers); distributors and resellers; and online
(through own virtual store & E-commerce sites).
5. World leading OS – One of the major advantages of Microsoft is its Operating
system. Although it is counted in the Product portfolio, and although people love to
point out the glitches in Microsoft OS, it is still one of the best Computer operating
system since the last several decades.
Weaknesses in the SWOT analysis of Microsoft
1. Legal proceedings: Microsoft is defendant in various unresolved cases against it. It
is entangled in various legal proceedings relating to product design, manufacture
and performance liability and other litigations relating to contracts, employment
issues or intellectual property rights.
2. Not able to control counterfeit of their software business in developing
nations: It is not able to curb the illegal use of their software business specially
operating system in the developing nations like china, India etc.
3. Lagging in innovation – Because of its vast usage, customers of Microsoft have a
common complaint that Microsoft keeps upgrading its products but there is nothing
new from the bottoms up from the brand. In terms of Operating system
capabilities, Apple is farther ahead then Microsoft. Because of which Apple is
slowly coming up as the chosen OS.
Opportunities in the SWOT analysis of Microsoft
1. Shifting to Razor & blade model: Rather than offering expensive software
Microsoft can work on Blade & razor model in order to counter illegal use of their
software specially Operating system, through which they can generate more
revenue.
2. Strategic Alliances: Company can focus on entering into new partnerships for the
development of innovative and technologically advanced products. Such
partnerships provide Microsoft a competitive edge and allow it to garner high
market share. Like in 2014, the company announced nine new hardware partners
for its Windows Phone. The partners provide a direct access to its tools, widening
its scope for consumers and launch new price points across several key growth
markets. The key partners include Foxconn, Gionee, Lava (Xolo), Lenovo, LG,
Longcheer, JSR, Karbonn and ZTE Corporation.
3. Demand of smartphones: Microsoft can capitalize over the growing demand of
smartphones which is emerging as a major growth opportunity in both developed &
developing nations.
Threats in the SWOT analysis of Microsoft
1. Competition: The software market is highly competitive, which may impact
the company’s performance. The company faces stiff competition in all its
segments. Its key competitors in Windows Live software and services
include Apple, Google and Yahoo!. Its Internet Explorer product faces stiff
competition from the browsers developed by Google (Chrome), Apple
(Safari), Mozilla, and Opera Software Company. The company’s server and
tools products compete against the related offering of IBM and Oracle.
2. Rapid technological changes: The tech-world is continuously changing.
Companies are ending up killing their own offering much before competition
kills it.
3. Pirated Market: It is the major threat company is facing from its software
front. Every year company loses billions of dollars due to the circulation of
pirated versions across the world. Microsoft loses significant amounts of
revenue owing to the piracy rate of 30% or more in several countries. Also
developing nations like China, India etc. accounts for major market which
are involved in illegal use of Microsoft’s software.
 MICROSOST CORPORATE SOCIAL RESPONSIBILITY

Microsoft corporate social responsibility (CSR) is guided by

the citizenship mission of the company which is “to serve globally the needs of
communities and fulfil our responsibilities to the public”. Moreover, charitable
activities of Bill & Melinda Gates Foundation founded by Microsoft founder Bill
Gates is also associated with Microsoft in the perception of the general public to a
certain extent.
The technology giant won a number of awards and achievements for its
responsible behaviour. These include ranking #1 on Corporate Responsibility
Magazine’s 100 Best Corporate Citizens 2018, ranking #1 for both, Environment
and Social Score which measures corporate performance using more than 200
factors. Moreover, Microsoft’s behavior as a socially responsible company has
earned number 2 spot on JUST Capital’s Top 10 Tech Companies.

Microsoft CSR Programs and Initiatives

Microsoft Supporting Local Communities
 Microsoft employees donated USD158 million to non-profits serving its local
communities and the world
 The Lagos Solar project in Nigeria uses batteries that are charged by solar panels, along
with intelligent inverters connected to Microsoft Azure Internet of Things technology
 International software provider Temenos relies on Microsoft Cloud services to reach
people across Myanmar who lack access to banking, giving them opportunities for more
financial stability and access to microcredit and other financial services.
 Microsoft’s 4Afrika Initiative provides a set of programs to empower African youth,
entrepreneurs, developers and business and civic leaders
 YouthSpark initiative aims to empower 300 million young people around the world with
opportunities for education, employment, and entrepreneurship
Microsoft Educating and Empowering Workers
 Microsoft collects employee feedbacks through multiple channels and acts on them. As
part of this initiative nearly 85 percent of our more than 117,000 employees responded
employee survey
 92% of surveyed stated they feel proud to work at Microsoft and 87% of employees
would recommend Microsoft as a great place to work
 90% of Microsoft’s employees are eligible for various bonuses
Labour and Human Rights at Microsoft
 Since 2016, Microsoft has had a formal commitment to respect human rights as a
signatory of the United Nations Global Compact
 The technology company adheres to its Global Human Rights Statement
 Microsoft provides health and wellness programs for families, paid vacation, paid sick
leave and paid time off for new parents
Employee Health and Safety at Microsoft
 The Microsoft CARES employee assistance program, offers free access to services
including personal and family counselling, stress management, and referrals for
child/elder care.
 The Microsoft Ergonomics Program offers the workforce ergonomic assessment and
training programs and special furniture, equipment, and software for medical needs.
 The company conducts Voice of the Supplier Surveys in an anonymous manner to
monitor the adherence to health and safety and other important CSR-related principles.
Microsoft and Gender Equality and Minorities
 The company is one of the first Fortune 500 companies in the world to offer domestic
partner benefits for Microsoft LGBT employees
 Since 2016 the company has nearly doubled the number of women corporate vice
presidents – both overall and in technical roles
 African American/Black and Hispanic/Latino representation among the workforce
reached increased by 33% in 2017
 Microsoft spent USD3 billion with minority, disabled, veteran, and woman owned
businesses in FY18
Energy Consumption by Microsoft
 44% of the electricity used by Microsoft data centres comes from wind, solar, and hydro
power electricity
 Air cooling techniques used at Microsoft data centres result in 20-30 percent lower
energy consumption
 Microsoft leveraged its corporate campus to help create an analytical software solution
that prioritizes maintenance and repairs our 125 Puget Sound buildings based on energy
and cost savings potential
 All new data centres of Microsoft have an average 1.125 Power Usage Effectiveness
(PUE), which is one-third less than the industry average data centre PUE of 1.7.
Water Consumption by Microsoft
 Air cooling techniques used at Microsoft data centres result in 90% lower water
consumption
 In India, the company captures rainwater for irrigation, and on its Hyderabad campus, it
treats sewage for use in landscaping, resulting in zero sewer discharge.
 Paris office also uses captured rainwater for irrigation and flushes fixtures.
Waste Reduction and Recycling by Microsoft
 Microsoft Real Estate and Facilities teams around the world implement waste
minimization programs, including office supply reuse, recycling, and in many cases,
composting
 Company’s Redmond, Washington dining facilities divert 99 percent of the waste from
the landfill by recycling, using compostable tableware, and adapting our menu to
minimize food waste.
Carbon Emissions by Microsoft
 Since July 1, 2012, Microsoft’s global operations have been carbon neutral.
 The company has purchased more than 14 million megawatt-hours (MWh) of green
power and reduced company-wide emissions by more than 9 million metric tons of
carbon dioxide equivalent (mtCO2e).
 Microsoft has supported the lives of more than 7 million people in emerging nations
through carbon offset community projects.
 Company’s carbon offset project portfolio represents more than 600,000 metric tons of
carbon dioxide (CO2) emissions
Microsoft and Sustainable Sourcing
 The company evaluates the operations of its suppliers against 23 different ethical, social,
and environmental risks
 Microsoft’s Device Supply Chain group (DSC) and indirect purchasing group oversee
dedicated programs to ensure that its standards are met and to build partnerships with
suppliers that advance social and environmental goals
 Company’s Global Procurement Group created a formal responsible sourcing function
in 2013 to consolidate and enhance its responsible sourcing activities with our indirect
suppliers
 More than 100,000 device and packaging components provided by suppliers have been
evaluated for compliance by Microsoft
Microsoft’s other CSR Initiatives and Charitable Donations
 The International Association of Privacy Professionals (IAPP) has recognized Microsoft
for having the ‘second largest number of certified privacy professionals (CIPP) of any
company.
 Microsoft employs more than 50 people whose primary role is investigating potential
breaches of company policy, and an additional 120 people whose primary role is
compliance
 Microsoft has launched Office 365 for Nonprofits in 92 countries around the world,
providing USD55 million worth of Office 365 subscriptions to nearly 11,500 nonprofits
globally
 Microsoft completed the Global Network Initiative (GNI) Phase III Assessment,
conducted by an independent assessor, and the GNI Board determined that Microsoft is
compliant with the GNI Principles on Freedom of Expression and Privacy
 The company began the audit of its non-hardware suppliers against 23 different ethical,
social, and environmental risks by country and by commodity category
Microsoft Corporation Report contains a full analysis of Microsoft corporate social
responsibility including Microsoft CSR issues. The report illustrates the application of
the major analytical strategic frameworks in business studies such as SWOT, PESTEL,
Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on
Microsoft. Moreover, the report contains analyses of Microsoft leadership, business
strategy, organizational structure and organizational culture. The report also comprises
discussions of Microsoft marketing strategy and its ecosystem.
 Bibliography
 https://www.microsoft.com/brands
 https://phdessay.com/hr-policies-of-microsoft
 https://en.wikipedia.org/wiki/microsoft%C3%A9
 https://www.microsoft.com/aboutus/quality-and-safety