The Strategy of Microsoft

free essayMicrosoft is a multi-national corporation that has its headquarter in Washington, the U.S.A. The organization develops computer software. Since its inception in 1975, the company has registered a tremendous growth up to date. Microsoft’s strong base is attributed to the strong strategies the company has put in place. Today, Microsoft is the biggest software maker in the world. The company provides IT solutions and a variety of applications used in different areas including education, banking and insurance. The growth of Microsoft puts the company in a position that it has to review its strategy continuously to ensure that it maintains the status built over the years. The paper highlights how effectively Microsoft’s leadership has functioned to propel the company to great heights of achievement.

How Microsoft Has Developed and Executed Its Strategy

Microsoft has developed a strategy that mainly aims at customer satisfaction. The company has structured a management system, decision making process and products that ensure that customer satisfaction is guaranteed. Therefore, Microsoft develops products that are of value to the customers. The company serves a big number of customers who have different needs, tastes and preferences. Microsoft strives to satisfy the varied needs of the customers through customization of products. Through customization of products, Microsoft provides solutions to the specific problems customers are experiencing. Customization of products is a challenging strategy to develop and execute. The company has to ensure that problems related to mismatch of expectations are eliminated. The company could come up with a product that could be applied in different sectors. To ensure that the product provides solutions to different sectors and specific needs, the company differentiates the product. The company makes the product unique for each sector and needs to ensure that the unique solution each sector requires is achieved.

Microsoft has developed its strategy to reach as many customers as possible. This strategy has registered good results judging from the market share the company commands. The company continuously reviews its strategy to make it better. Microsoft develops software that is compatible to as many devices as possible. The use of mobile devices such as mobile phones and iPads has gained popularity all over the world. Microsoft, therefore, has come up with software and applications that can be used in mobile devices. The company has gone beyond developing software and applications that were only used on the old computer models. The use of this strategy has made it possible for the company to acquire and retain a big number of customers.

Microsoft has developed and executed a strategy through pricing that has seen the company register a big success. The use of pricing has been instrumental in customer acquisition and retention. Microsoft’s control of a large market share has made it easy for the company to develop and execute a strategy that revolves around pricing. Microsoft has made its products more affordable to different consumers. Through this strategy, customers pay for only the products that they need. Microsoft has customized products so that customers single out what they can afford (Milne, 2014). Microsoft products are used widely even on simple devices like mobile phones. By offering relatively affordable products the company has been able to reach customers such as students most of whom do not have access to large incomes.

What Microsoft Could Do to Better Accomplish Its Goals

Microsoft has done well with its strategy as far as customer satisfaction and market control are concerned. However, more is required of the company for it to better accomplish its goals. Microsoft could ensure that the needs of the larger society are taken into account even as the company strives to satisfy specific consumer needs. The company could invest in promoting cultural practices that promote good morals in society. Microsoft for a long time has concentrated on developing products that satisfy the needs of the modern society. A good number of the modern trends witnessed in different societies have come at the expense of several cultural practices. Promoting modern trends has created a big gap between the older and younger groups in society. Microsoft could better accomplish its goals if all groups would readily consume the variety of products Microsoft develops.

Microsoft could better accomplish its goals by giving back to society through initiation of effective corporate social responsibility programs. The success of Microsoft as a business largely depends on the society. The market served by Microsoft is found in the society. Microsoft realizes big profits by virtue of controlling a large market share. Microsoft gets inputs in terms of human capital from society. Microsoft should invest in the society just as much as the company gains from the same society. Microsoft could develop products that could be used by portions of the society that cannot afford the products offered by the company. Microsoft could build a good image by giving back to society. Good image plays a crucial role in attracting and retaining customers. Most customers would always want to associate with a reputable company.

How Effective Microsoft’s Leadership Has Functioned

The leadership of Microsoft has been instrumental in ensuring that the company develops and executes strategy effectively. The leadership of Microsoft has put emphasis on creativity and innovation. Microsoft strives to satisfy the diverse needs of customers. The company has had to exercise creativity and innovation of the highest order that has made it possible to provide solutions to different needs. Microsoft’s leadership encourages creative and innovative behavior among the employees. Employees of Microsoft are given support to try new ideas and are rewarded accordingly. The management has successfully nurtured the company to continuously improve its product and introduce new ones in an attempt to satisfy the changing consumer tastes and preferences (Alrichs, 2000). This has made it possible for Microsoft to maintain its position as the biggest software maker.

Microsoft’s leadership has also built an action-oriented culture in the company. The management of the company encourages employees to put ideas into action. The leadership ensures that plans are implemented. Calculated risks are taken during the implementation process of the company’s different plans. The management ensures that all possibilities are explored before action is taken. Microsoft has come up with a variety of products because the company tries new ideas. The management by nurturing an action-oriented culture has encouraged the employees to work hard to improve the company (Kapferer, 2008). The growth of Microsoft has translated to greater satisfaction of customer needs. An action-oriented culture has made it possible for Microsoft to work towards the vision of becoming better.

Microsoft has gained the status as the largest software developer in the world through years of hard work. The company has continuously come up with strategy to enable it survive in the increasingly competitive world. The success of Microsoft can be attributed mainly to the company’s development of a variety of product. Customers have embraced Microsoft’s products because the products add value to their lives. Microsoft, on its part, works hard to ensure that customers get value for their money. Microsoft provides a variety of products from which consumers are free to choose. The company has gone to the extent of partnering with other companies in a bid to improve its products.