Service Strategy of Microsoft
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Microsoft was created in 1975 and is headquartered in Redmond, Washington, employing over 91,000 people globally. It has two main products, Microsoft Windows and Microsoft Office, as well as other products like Xbox, MSN, and Bing. Microsoft has a strong brand reputation but faces threats from competition and changing consumer needs. It targets both business and personal users with products tailored for each segment. Microsoft utilizes various marketing strategies across social media and digital platforms to promote its wide range of software and services.
Service Strategy of Microsoft
- 1. High Flyers
- 2. Company Introduction • Created in 1975 by Paul Allen & Bill Gates. • Head Quartered in Redmond, Washington. • Working 91,005 employees in 105 countries. • Net Revenue 74.3$ billion in 2012.
- 3. Product Categories • Two main products: Microsoft Windows Microsoft Office • Other products: MSN Encarta PC accessoires Xbox
- 4. SWOT Analysis Strengths •Brand loyalty & brand reputation •Easy to use software •Strong distribution channels •Robust financial performance •Acquisition of Skype Weaknesses •Poor acquisitions and investments •Dependence on hardware manufacturers •Criticism over security flaws •Mature PC markets •Slow to innovate Opportunities •Mobile advertising •Mobile device industry •Growth through acquisitions Threats •Intense competition in software products •Changing consumer needs and habits •Open source projects •Potential lawsuits
- 5. STP of Microsoft • Segmentation & Targeting – Mass market &distribution E.g. –Microsoft office world wide BUT; user based ( business and personal) E.g. – Personal – windows home premium Business – Windows professional • Positioning – Service focus strategy Narrow range of services to fairly broad market
- 6. 7Ps of Microsoft • Product - Mostly known for Windows. Apart from that, Office, Xbox, Live, MSN, Online services, Server and tools, Programming languages, Windows Phone, Gaming, Bing, and more. • Price Pricing strategy-Skimming pricing Pricing method- Competitive pricing • Place Virtual & Physical
- 7. • Promotion Using all social media forums such as Facebook, Twitter, Google+ etc. & web banners • People Employees, direct and indirect agents • Process Identifying software requirements through surveys Introducing through alpha, beta versions Gathering more information to commercialize • Physical Evidence Search engine web pages(MSN, Bing, Live search) Eye catching pickings with unique characteristics
- 8. Four broad categories of services • Based on differences in nature of service act (tangible/intangible) and who or what is direct recipient of service (people/possessions), there are four categories of services: People processing Possession processing Mental stimulus processing Information processing
- 9. Four categories of services People Processing Possession Processing Mental Stimulus Processing Information Processing People Possessions Tangible Actions Intangible Actions Who or what is the direct recipients of the service? natureoftheserviceact
- 10. Technology in services of Microsoft • Technology-free service encounter E.g. Buying PC accessories from physical outlet • Technology mediated service encounter E.g. Buying PC accessories or software through E-bay • Technology-generated service encounter E.g. searching information using MSN or Bing
- 11. Service strategies of Microsoft • Differentiation strategy • New service development strategy • Globalization strategy • Complementary service providing strategy
- 12. Differentiation Strategy • Providing service in tangible & intangible manner Intangible – download through the website of Microsoft Tangible – selling software through CD & DVDs • Software suits Office package - Ms Excel, Ms word, Ms Access, Ms PowerPoint etc. • Upgrading service Windows 95, 98, XP, Vista, Seven, Eight • Giving attention to personnel training
- 13. New service development strategy Radical innovations •Start-up business E.g. Introducing “Live search” as a search engine tool in addition to MSN Incremental innovations •Service improvements E.g.MS office package 2007 to 2010
- 14. Globalization strategy • Customization – Standard setting with slight differences Skype- language basis Operating system( Windows)- slight differences of the interface according to different target audience such as professionals, official and business users • Information intensity Digitalized information helps to globalize the service • Complexity Microsoft personnel keeps updating back office task to move to the next version E.g. MS office package 2007 to 2010
- 15. Complementary service providing strategy • Application software with operating systems • Software solutions with computer accessories to support them.
- 16. THANK YOU !