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Summary BUS 499 Assignment 2.docx BUS499 Week 6 Assignment 2 BUS499 Business Administration Capstone Microsoft Corporation is among the best multinational technology companies in the world. It is headquartered in Redmond, Washington, and is involved in man$7.49
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Summary BUS 499 Assignment 2.docx BUS499 Week 6 Assignment 2 BUS499 Business Administration Capstone Microsoft Corporation is among the best multinational technology companies in the world. It is headquartered in Redmond, Washington, and is involved in man
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RAS
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Rasmussen College
BUS 499 Assignment BUS499 Week 6 Assignment 2 BUS499 Business Administration Capstone Microsoft Corporation is among the best multinational technology companies in the world. It is headquartered in Redmond, Washington, and is involved in manufacturing, licensing, and selling activities. The...
bus 499 assignment 2docx bus499 week 6 assignment 2 bus499 business administration capstone microsoft corporation is among the best multinational technology companies in the world it is headq
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BUS499
Week 6 Assignment 2
BUS499 Business Administration Capstone
Microsoft Corporation is among the best multinational technology companies in the
world. It is headquartered in Redmond, Washington, and is involved in manufacturing,
licensing, and selling activities. The standard items sold by the company include computer
software, personal computers, and consumer electronics, among numerous others. These
environments involve forces of competition, external threats, opportunities, strengths, and
weaknesses. All these enhance the development of the general business environment that has
a tremendous impact on this corporation.
General Environment
Microsoft is influenced highly by the economic and technological facets. These two
determining factors affect the overall performance of the corporation at hand.
Economic Environment
The economic environment refers to the economic factors that affect consumer
spending habits. Some of the components that impact Microsoft's operations include
personal income, the unemployment rate, and interest rates (Hitt, Ireland, 2020). All of these
components can influence the purchasing power of consumers and firms. For example,
businesses that are struggling financially tend to shop around for cheaper software to use in
place of Microsoft as Microsoft is expensive. In addition to companies, households are also
less likely to invest a lot of money in computer products because of the country's current
economic state. Therefore, Microsoft leaders also have to accurately predict economic
movement in order to take the proper actions and drive Microsoft in the right direction.
Technological Environment
, Microsoft relies heavily on its technology. The technological market requires
advanced technology that will meet the consumers’ needs and preferences and stand firm in
competition with other up and rising companies such as Google and Apple. For example,
Google’s web browser, Google Chrome, can be used on all operating systems. One of
Apple’s key selling points is that its operating system runs a low risk of being attacked by
viruses and hackers, unlike Microsoft’s operating system. Nowadays, the Smartphone has
become a popular trend, and Microsoft has to design a program for smartphones that will run
little to no risk of hackers and viruses if it wants to remain in the running with its competitors
in the technology aspect.
Forces of Competition
When considering the Five Forces of competition, the two that are most
significant to Microsoft are Bargaining power of buyers and bargaining power of
suppliers.
Bargaining Power of Buyers
The moderate switching costs were pretty impactful on Microsoft. The customers
involved tended to shift to other firms instead that have considerable prices. That had
dramatically impacted the overall revenue collected by the firm. The firm moderated the
prices intending to retain their customers, which they did, resulting in a significant sales
registration. Microsoft has also pursued an offensive IS strategy by introducing a well-
founded platform known as window server and window azure. This has resulted in the
company retaining their customers, even having back the ones carried away by the
competitors appealing prices. The incorporation of these strategies has neutralized the
competition in their favor. This implementation has resulted in Microsoft performing
exceedingly well to the extent of being ranked as the second most valuable brand across the
world with a massive value of $63 billion.
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