Microsoft Business and Market Overview
College Writing II ENG-21011-105
Rosann M Gage
Business and Market Overview Section
A business model describes how a company manufactures, delivers, and sells a product or service to generate public wealth. According to Laudon (2018), Microsoft offers software and systems for leisure, but it also provides software and systems for companies. This may be observed in the corporate world with Microsoft Office, cloud computing, and Skype for business, to name a few examples. Because of Microsoft’s many divisions and products, it may be said that the company has a variety of revenue-generating business models (Hacklin et al., 2018). The first and most popular kind of business is the sale of software. Microsoft offers software, such as Internet Explorer Windows or Microsoft Office, to individuals, organizations, and even the government. In addition to the fact that Microsoft does not have to cover the costs of shipping, packaging, and general inventory, this model is also the most profitable for the company in terms of revenues.
When it comes to software development, Microsoft employs a “trunk-based-branching strategy” to aid in the development of software quickly and consistently (Mijacobs & EdKaim, 2021). It follows from this that, with every update or bug correction, Microsoft creates a new branch of its original program. They then build the latest update or repair, distribute it to their team members, pull the software, and test it over 60,000 times before releasing it to its consumers. Beyond general software, Microsoft creates and profits from gaming goods, subscriptions, and simply available cloud services and its general software business (Mijacobs & EdKaim, 2021). Examples include the Xbox, Microsoft Office for Business subscriptions, and the cloud. Microsoft Office for Business subscriptions is also available. Microsoft derives money not just from the sale of these items but also through subscriptions and the retention of its consumers via these products. This is owing to the high expense of switching to a different operating system (Apple, Google, etc.) Microsoft sells most of its products exclusively through digital channels (Saebi & Foss, 2015). This includes software, the cloud, Microsoft Office, and other similar services. This means that Microsoft will not be responsible for storing, delivering, or incurring any inventory costs for these products. The Xbox, Surface, and other devices can be purchased in stores and only require the most basic manufacturing and inventory management procedures.
The release flow developed by Microsoft spans the complete DevOps process, from development to deployment (Mijacobs & EdKaim, 2021). When developers are ready to incorporate their modifications into the system and distribute their changes to the rest of the team, they push their subsidiary to a branch on the server and create a pull request for the changes (Saebi & Foss, 2015). Some developers are working in Microsoft’s repository, each of whom has multiple branches. Therefore, Microsoft has established a naming scheme for divisions on the server to help reduce confusion and what we refer to as “branch proliferation. Typically, developers create a local branch named users/username>/feature, where username> is replaced with the account name of the developer who is working on the project.
As previously mentioned in the business model section, Microsoft provides a diverse range of goods and services to meet customers’ demands and various requirements (He, 2014). Microsoft includes software, as well as software applications, for governments. Microsoft Windows, Microsoft Office, Skype, Outlook, and even cloud computing are examples of how this works. These items may be marketed to both individual consumers and corporations simultaneously. Microsoft provides products specifically designed for enterprises, such as Skype for Corporate and Microsoft Office, which are only available to business customers (Poett, 2022). Microsoft provides cloud computing services to both corporations and individuals on the service side of things. This may be seen in the case of Microsoft One Drive. Some of these products, such as Microsoft Office, generate revenue via subscriptions, which Microsoft profits from. Microsoft sells a variety of additional gadgets and its software and cloud services. The Xbox is Microsoft’s game console, which is available for purchase. Microsoft also provides different devices, such as the Surface, to customers (He, 2014). This tablet computer is small enough to fit in your hand yet powerful enough to do tasks similar to traditional computers. Microsoft now provides access to the LinkedIn social networking site as a service. This is a website where job seekers may create profiles and search for available positions. It is also a location where prospective employers may get in touch with the business.
Microsoft looks to be pursuing a broad differentiation approach in its growth plan. Attempting to get a competitive edge is the motivation behind this (Hacklin et al., 2018). Selling things that are generally one-of-a-kind to many customers is called broad differentiation. This is evident in the items Microsoft provides and the way the company advertises and sells them (Hacklin et al., 2018). Microsoft provides innovative software, cloud computing, and goods for ordinary consumers and business customers. Microsoft has an extensive client base because it offers a wide range of customers, including regular people, corporations, and even the government. As a result, Microsoft has made significant investments in the advancement of technology. From 2018 to 2019, Microsoft increased its investment in research & development by an extra 2.6 billion dollars. Improvements to Windows and cloud computing have been the primary emphasis of this. Microsoft has also witnessed tremendous growth in LinkedIn, and the company expects to make an additional eight acquisitions in the group by 2020.
Microsoft Corporation views diversity as a necessary component of its aggressive growth strategy. This comprehensive strategy aims to assist Microsoft’s expansion via mergers and acquisitions. The corporation expands via this enthusiastic approach by launching new companies (Ilag, 2020). For instance, when Microsoft purchased Nokia’s devices and services group to re-enter the smartphone hardware industry, the company diversified its business. The corporation can successfully execute this aggressive growth plan via new product development and commercial endeavors (Ilag, 2020). Consequently, all of these are based on the direct approach of broad differentiation.
In conclusion, the paper aims to provide a business and market overview concerning Microsoft to determine how the company is fairing in the business world and actions and measures in place to facilitate competitiveness and profitability through the sale of their products. A business model describes how a company manufactures, delivers, and sells a product or service to generate public wealth. When it comes to software development, Microsoft employs a “trunk-based-branching strategy” to aid in developing software quickly and consistently. The company provides innovative software, cloud computing, and goods for ordinary consumers and business customers. Microsoft has an extensive client base because it offers a wide range of customers, including regular people, corporations, and even the government. Microsoft has several hundred developers working in its repository, each of whom has some branching relationships with other developers. To avoid confusion and the occurrence of what they refer to as branch proliferation.
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