All about Microsoft Strategy
Microsoft strategies have made an incredible impression of new technology on people and company across the globe. In 1979, Bill Gates and Paul Allen from Seattle converted BASIC, a popular mainframe computer programming language for personal computers. Shortly after, both founded Microsoft, which is being derived from the words microcomputer and software. In 1977, Microsoft opened its first international office in Japan and moved to Bellevue in Washington in 1979, incorporated under the name of Microsoft Inc.
History of Microsoft Products
Operating System: An operating system is a software that allows a computer to operate. Microsoft operating system that was released publicly was Unix, also called Xenix, in the year 1980. It was the latest user based operating system having Microsoft Word processor. Microsoft’s most popular operating system was MS-DOS that was made for IBM in 1981. The company licensed MS-DOS to IBM but retained the rights of the software.
Microsoft mouse: It was released on May 2, 1983.
Microsoft Windows: In 1985, Microsoft Office was released with a collection of programs that can be used in an office, including a word processor, spreadsheets, business presentation software, mail programs, etc.
Internet Explorer: Microsoft released Windows 95 in August 1995, containing technology to connect to the internet. It had built-in support for dialing up network and transmission control protocol and web browser internet explorer 1.0.
Xbox: In the year 2001, Microsoft introduced the Xbox system, facing stiff competition from Sony PlayStation and eventually discontinued the original Xbox with the latest Xbox 360 gaming console with success.
Microsoft Surface: Microsoft in 2012 made its first foray in the computing hardware market with tablets that run Windows RT and Windows S pro.
Microsoft Target Market and Microsoft Marketing Strategy
From the time, Satya Nadella has become the CEO of Microsoft, the Microsoft strategy related to marketing strategy has also become less hostile. Microsoft’s target market and Microsoft marketing strategies have also changed over the years. With Microsoft’s target market strategy and Microsoft marketing strategy, Microsoft has been able to indulge in effective communication with the customers worldwide. Microsoft has employed itself into numerous communication channels like direct marketing, public relation, personal selling, experience, sales promotion, and advertising in an integrated manner to communicate Microsoft’s marketing message to Microsoft target markets. Moreover, Microsoft emphasizes the Microsoft target market and Microsoft marketing strategies and ensures that the customers and prospective customers are well aware of the company’s latest market offerings.
For an effective Microsoft strategy, Microsoft marketing and Microsoft target market strategy focus on the 7p’ s of the marketing, which are product, price, place, promotion, process, people, and physical evidence. Moreover, Microsoft strategy on Microsoft’s target market focuses on those segments that value advanced capabilities and features of technological products and services.
Microsoft strategy related to Microsoft target market is considered a set of activities, including the marketing efforts of the company. The goal of Microsoft strategy related to Microsoft target market strategy is to segment the population in two distinct groups based on specific characteristics. Moreover, after identifying different segments Microsoft strategy, it is to design the multiple products and services based on their needs.
In addition to this, Microsoft strategy related to Microsoft target market strategy is to employ differentiated and undifferentiated Microsoft target market strategy. The undifferentiated Microsoft strategy is to target the entire population as the Windows Operating System is homogeneous. However, in differentiated Microsoft strategy, the Microsoft target market and the Microsoft marketing strategy changes. Microsoft strategy needs to be changed for developers and mobile tools. Such Microsoft strategy is required to be employed by Microsoft because such kinds of products face cutting-edge competition. Therefore, Microsoft target market strategy is an indispensable part of the overall Microsoft marketing strategy.
Microsoft strategy related to the target market is considered as a set of activities, including the marketing efforts of the company. The goal of Microsoft strategy related to the target market strategy is to segment the population in two distinct groups based on specific characteristics. Moreover, after identifying different segments, Microsoft strategy is to design the multiple products and services based on their needs.
Microsoft Marketing Strategy
Microsoft strategy related to Microsoft marketing strategy integrates the following elements:
Cloud-first mobile-first– Intelligent cloud is one of the most prominent sources of Microsoft strategy and Microsoft’s competitive advantage, which focuses on the cloud segment of the business. The Mobile-first Microsoft strategy relates to the mobility of experience and technology.
Microsoft Strategy Growing through mergers and acquisitions: Another Microsoft strategy that has led to the extensive growth of Microsoft market is merger and acquisition. Microsoft strategy of merger and acquisition plays an important role in Microsoft strategies related to business, which facilitates increasing the capabilities, value offering, and the product range of the company. Some of the Microsoft strategies related to merger and acquisition that have resulted in the growth of Microsoft markets are the acquisition of Nokia corporation devices and services, Mojang synergies, LinkedIn, etc.
Microsoft Strategy of Focusing on augmented and virtual reality: Another Microsoft strategy to enhance its marketing activities is to place augmented and virtual reality as the core of Microsoft strategy. Microsoft strategy in terms of Microsoft marketing is to demonstrate how virtual reality can be used to help in balancing and improving the shopping experience in education and automotive designs. Through such Microsoft strategy, it has been able to gain more competitive advantage, just like being a leader in the cloud segment, having a positive implication on a long term perspective.
Microsoft Strategy on Promoting tech intensity: Microsoft strategy related to Microsoft marketing strategy is to focus on tech intensity. Tech intensity is an amalgamation of cultural mindset and business process. It focuses on the development and propagation of digital capabilities that would help in creating end-to-end digital feedbacks, better information flow, automated workforce, and intelligence service.
Investing in the communication of marketing messages through integrated marketing communication channels: Microsoft marketing strategy to Microsoft target market is through a range of marketing communication channels like sales promotion, events, advertising, public relations, experience, personal selling, and direct marketing in an integrated way. Through different employee marketing communication channels, it has led to reaching a greater number of Microsoft target market segments. Not only has it broadened the reach, but it has also facilitated the creation of brand awareness about the organization’s products and services.
Focus on product element of the marketing: Microsoft’s marketing strategy focuses on all the seven P’s of marketing. Moreover, along with focusing on all the 7 P’s of marketing, Microsoft strategy is also focusing on the user convenience of the products and services, which is a unique selling proposition associated with Microsoft.
Targeting customers that value effectiveness and efficiency: Another Microsoft marketing strategy related to Microsoft target market is focusing on specific groups among the population that value efficiency and effectiveness of the technological products and services. Focusing on such Microsoft target market helps in determining the needs of the consumers and bringing innovation and technological changes. It aids the company in retaining and enhancing its customer base.
Other Microsoft Strategy
Learning and adapting: The most successful Microsoft strategy is learning and adapting. Microsoft continuously upgrades to new technologies adapting to the dynamic environment. It continuously upgrades the technology and also improves and makes the products more friendly and desirable.
Regular product launches: Another Microsoft marketing strategy is regularly creating and launching its product like it has revolutionized gaming with Xbox360 and has also involved cloud computing giving tough competition to the current players in the market.
Network marketing; It is the first and prominent Microsoft marketing strategy. It is because each Window product is compatible with another Window product. Thus, network marketing has been one of the unique selling propositions of Microsoft.
The customer focuses: Determining and focusing on Microsoft target market is the key strategy for its successive growth. The customer-centric approach has been one of the major competitive advantages that has led the company to reach new heights.
Building brand equity: Microsoft presently is among the top 10 companies in terms of brand equity. It has high brand equity and has become a highly trusted household name due to different consumer segments and business-to-business products.
Promotional mix: Microsoft’s biggest promotion expenses are on the advertising. It focuses on effective communication strategies and tactics that facilitate in attracting target customers. It offers discounts and other incentives to attract customers, like students and military personnel. One can purchase the company’s product at discounted prices. On the other hand, Microsoft uses direct marketing that directly deals with the organization like academic institutions. In personal selling, the representatives of Microsoft present product and their features to potential buyers. Moreover, donations and other related activities are executed through Microsoft philanthropies.
Pricing strategies: Microsoft adheres to suitable pricing approaches. It uses the following pricing strategies:
- Market-oriented pricing: It is the price of the products based on market factors like consumer demand and competitive pricing.
- Premium pricing strategy:It includes offering products for free and requiring payment for any additional functionality or the features.
- Buy only what you use pricing strategy:It is for cloud services, which involves fees based on the usage instead of fees per device.