Yuvrajsinh 7141 project 1
Microsoft
Be What's Next!
Our Strategy
Microsoft Corporation's generic strategy creates
competitive advantage while enabling the business to
maintain a broad market scope.
Contact us.
Regus,1101 – 1106, Earth Arise, 11th Floor, Sarkhej –
Gandhinagar Highway, Makarba,
Ahmedabad – 380015.
Page 1 of 29
Yuvrajsinh 7141 project 1
Executive summary :
Microsoft recognizes that trust is necessary for organizations
and individuals to fully embrace and benefit from cloud
services. Microsoft is committed to providing customers the
compliance information they need in order to have confidence
in Microsoft as their preferred cloud service provider (CSP).
Although the cloud can be abstract, the Microsoft approach to
delivering a trustworthy cloud is not. It is based on many years
of experience, a commitment to security, privacy, and
transparency principles, and on leading industry practices.
Page 2 of 29
Yuvrajsinh 7141 project 1
The term “compliance” has been used frequently as cloud
adoption has increased. It is used in several different ways in
relation to cloud services, especially as a tool in the evaluation
of cloud services and as a way to describe expectations about
how cloud services are operated.
➢ Customers must meet their own compliance needs.
➢ Customers retain their own compliance obligations when
they use cloud services.
➢ These obligations might arise from internal mandates or
external regulations and industry standards, and they rely
on the capabilities of the CSP.
➢ The CSP’s capabilities become a portion of the full set of
compliance capabilities, which the customer represents.
➢ This compliance is supported through third-party
validation of stated Microsoft capabilities, which are
exposed in the form of certifications and attestations.
Page 3 of 29
Yuvrajsinh 7141 project 1
●Our business:
Our Microsoft Dynamics software offerings are licensed to
enterprises through a global network of channel partners
providing vertical solutions and specialized services. We
distribute our retail packaged products primarily through
independent non-exclusive distributors, authorized replicators,
resellers, and retail outlets. Individual consumers obtain these
products primarily through retail outlets, such as Wal-Mart,
Dixons, and Microsoft Stores. We distribute our hardware
products, including Surface, Xbox, and PC accessories, through
third-party retailers and Microsoft Stores.
We generate revenue by developing, licensing, and
supporting a wide range of software products and
services, by designing and selling hardware devices, and
by delivering relevant online advertising to a global
customer audience. In addition to selling individual
products and services, we offer suites of products and
services.
Page 4 of 29
Yuvrajsinh 7141 project 1
●Responsibility :
Microsoft corporate social responsibility (CSR) is guided by the
citizenship mission of the company which is “to serve globally
the needs of communities and fulfil our responsibilities to the
public”. Moreover, charitable activities of Bill & Melinda Gates
Foundation founded by Microsoft founder Bill Gates is also
associated with Microsoft in the perception of the general
public to a certain extent.
Page 5 of 29
Yuvrajsinh 7141 project 1
The technology giant won a number of awards and
achievements for its responsible behavior. These include
ranking #1 on Corporate Responsibility Magazine’s 100 Best
Corporate Citizens 2018, ranking #1 for both, Environment and
Social Score which measures corporate performance using
more than 200 factors. Moreover, Microsoft’s behavior as a
socially responsible company has earned number 2 spot on
JUST Capital’s Top 10 Tech Companies.
●Inclusive :
We're taking action. We start with our senior-most leaders.
Microsoft's Board of Directors is one of the most diverse of any
technology company today, with women and racial and ethnic
minorities holding nine of our 12 positions. At Microsoft, our
diverse backgrounds are helping build better technology.
●sustainable :
With decades of experience promoting sustainability practices,
we're collaborating with organizations and experts around the
world to help set sustainability best practices and science-based
standards.
Page 6 of 29
Yuvrajsinh 7141 project 1
Financial highlights :
Page 7 of 29
Yuvrajsinh 7141 project 1
Page 8 of 29
Yuvrajsinh 7141 project 1
Target market :
☆Microsoft Marketing Mix – 4Ps
The marketing mix is the mixture of analysis of most
important factors of the business, they are as follows
• Product
• Price
• Place
• Promotion
let’s start with discussing the product mix of Microsoft
●Product Mix of Microsoft :
Product refers to an item that fulfils the consumer’s needs
and wants whereas Product mix refers to the assortment
of that product. Microsoft deals in both hardware and
software products. Their hardware products include
computers, laptops, tablets, Xbox and phones whereas
software products include Microsoft Office and Windows
OS.
◇ Microsoft has a huge product portfolio.
Page 9 of 29
Yuvrajsinh 7141 project 1
●Price Mix of Microsoft :
Price refers to the monetary value of a product whereas
Price mix is the strategy to determine the price of the
product. Often, Microsoft uses a Market-oriented pricing
strategy, Freemium pricing strategy, and Buy Only What
You Use pricing strategy.
●Place Mix of Microsoft :
Most of the sales of Microsoft is generated through
its website. Users can download and purchase the
Microsoft software from this website. Microsoft also has
brick and mortar shops for selling their hardware products.
Apart from this, this technology giant is associated with
various sellers who are strategically located in different
areas of the market.
●Promotional Mix of Microsoft :
Promotion refers to the marketing of products that
comprises elements like sales promotion, advertising, and
many more whereas Promotional mix is the efforts made
by the companies using promotional tools to reach out to a
broader audience.
Page 10 of 29
Yuvrajsinh 7141 project 1
Page 11 of 29
Yuvrajsinh 7141 project 1
Earning source & case flow :
• Microsoft sells computing devices, cloud systems and
services, software, and other products to consumers
and businesses.
• The company's intelligent cloud segment is the
largest source of profit, as well as the fastest-
growing.
• The COVID-19 pandemic has had positive impacts on
certain aspects of Microsoft's business, including its
cloud business and productivity tools.
• Microsoft announced in mid-January plans to acquire
popular video game company Activision Blizzard for
$68.7 billion.
Microsoft divides its business into three reportable
segments, breaking out results by both revenue and
operating income: productivity and business
processes, intelligent cloud, and more personal
computing. These segments are categorized
according to both product type and customer
demographic.
Page 12 of 29
Yuvrajsinh 7141 project 1
Page 13 of 29
Yuvrajsinh 7141 project 1
Execution :
●Marketing plan :
Not just Microsoft, about every tech giant with global
recognition, including Microsoft marketing mix, owes a
significant part of its success to its specifically crafted marketing
mix, often referred to as the 4Ps. These Microsoft 4ps, the four
pillars, serve as the cornerstone of Microsoft's marketing
strategy, encapsulating their approach to reaching millions of
customers worldwide. The Microsoft marketing strategy
effectively utilizes these principles to connect with a vast and
diverse global audience.
Page 14 of 29
Yuvrajsinh 7141 project 1
●Sales plan :
A sales strategy plan is a company's roadmap for securing
dependable, long-term revenue through the retention and
acquisition of new and existing customers. They typically
encompass everything from specific tactics, market strategy,
processes, objectives, forecasting, budgeting, and timeline.
Microsoft Corporation considers diversification as a supporting
intensive growth strategy. In this intensive strategy, the
company grows by developing new businesses. For example,
Microsoft diversified its business when it acquired Nokia's
devices and services division to re-enter the smartphone
hardware market.
Page 15 of 29
Yuvrajsinh 7141 project 1
Milestone :
April 5 marks the 46th birthday of the most influential software
vendor in the history of personal computing. Microsoft,
founded in 1975, is one of the most successful tech companies
in history, with a market capitalization of just over $1 trillion.
Headquartered in Redmond, Washington, Microsoft is a
household name whose products are used by hundreds of
millions of people every day, and its logo is one of the most
recognized around the world.
It has a long and storied history, from its innovative beginnings
as the developer of the BASIC language and striking early
success with IBM, to the authoring of universal business
software, manufacturing of high-performance computing
devices and investments in cloud computing, AI and new
technologies.
In 1975 Bill Gates and Paul G. Allen, two boyhood friends from
Seattle, converted BASIC, a popular mainframe computer
programming language, for use on an early personal computer
(PC), the Altair.
Page 16 of 29
Yuvrajsinh 7141 project 1
The company was one of the world's largest tech companies
and remains a leader in software development. After years of
being in a rut, the company changed direction under the
leadership of CEO Satya Nadella. Microsoft is a household name
with product lines like Windows, Office, and Xbox.
Microsoft is the world's largest software maker. The
company, founded by Bill Gates and Paul Allen in 1975, is
best known for its software products, including Microsoft
Windows operating systems, the Microsoft Office suite,
and the Internet Explorer web browser.
Page 17 of 29
Yuvrajsinh 7141 project 1
Company:
●Our purpose :
We generate revenue by developing, licensing, and
supporting a wide range of software products and
services, by designing and selling hardware devices, and
by delivering relevant online advertising to a global
customer audience. In addition to selling individual
products and services, we offer suites of products and
services.
Our products include operating systems for computing
devices, servers, phones, and other intelligent devices;
server applications for distributed computing
environments; productivity applications; business solution
applications; desktop and server management tools;
software development tools; video games; and online
advertising. We also design and sell hardware devices
including Surface RT and Surface Pro, the Xbox 360
gaming and entertainment console, Kinect for Xbox 360,
Xbox 360 accessories, and Microsoft PC accessories.
Page 18 of 29
Yuvrajsinh 7141 project 1
● Our culture :
We fundamentally believe that we need a culture founded
in a growth mindset. It starts with a belief that everyone
can grow and develop; that potential is nurtured, not pre-
determined; and that anyone can change their mindset.
We need to be always learning and insatiably curious. We
need to be willing to lean into uncertainty, take risks and
move quickly when we make mistakes, recognizing failure
happens along the way to mastery. And we need to be
open to the ideas of others, where the success of others
does not diminish our own.
● Our Rise strategy :
Leading in the future means living up to our purpose, which
is much bigger than the products we create. Our purpose is
enabled by our technology and delivered through the
expertise and passion of our employees.
Page 19 of 29
Yuvrajsinh 7141 project 1
● Our values :
Our values guide how we make decisions, treat each other,
and serve our customers. They underpin how we achieve
our purpose: We create world-changing technology that
improves the life of every person on the planet. More than
simply words, our values are the common thread that
unites us.
Page 20 of 29
Yuvrajsinh 7141 project 1
● Strategic priorities :
our strategy is to deliver the world’s best semiconductors
for an increasingly data-centric world. Over the last few
years,we’ve initiated a transition from being a PC-centric
company to a data-centric one and expanded our product
offerings in order to seize new market opportunities.
By focusing on our four strategic priorities – accelerating
the growth of the company, improving our execution,
thoughtfully deploying our capital and evolving our culture
– we can have a larger impact on our customers’ success.
● PC centric :
Market opportunities in our PC-centric business include
client CPUs and chipsets, connectivity devices (including
modems in PC and sub-5G smartphones), discrete graphics,
memory and storage media in client, phone and USB/cards.
Page 21 of 29
Yuvrajsinh 7141 project 1
● Lead technology inflections :
Our strategic intent is to lead in key technology inflections
that are fundamental changing computing and
communications. The most important drivers of change we
see today are AI, the transformation of networks
spearheaded by the transition to 5G, and the rise of the
intelligent edge. We see a future where Intel® technologies
enable our customers to move data faster, store more, and
process everything—from large complex applications in the
cloud, to autonomous cars and small low-power devices at
the edge.
● Spotlight : big-belts
To be at the forefront of the constant technological change
in our industry, we must evaluate new and existing big bets
based on the following criteria: the “bet” is leading the
edge of a technology inflection, it plays a significant role in
our customers ‘success, and it offers a clear path to
profitability and attractive returns. Our current big bets are
memory, autonomous driving, and 5G.
Page 22 of 29
Yuvrajsinh 7141 project 1
● open platforms :
Around the globe, companies are building their networks,
systems, and solutions on open standards-based platforms
such as Linux, Android, and others. Intel has helped set the
stage for this movement, with our historic leadership in
developing standards for the world’s companies to use.
These open platforms are constantly innovated by the
world’s developers, expanding their capabilities while
increasing their stability, reliability, and security. In addition,
micro services have enabled the development of flexible,
loosely coupled services connected via APIs to create end-
to-end processes.
We also deliver a steady stream of open source code and
optimizations for projects across virtually every
platform and usage model. We are committed to co-
engineering and jointly designing, building, and validating
new products with software industry leaders to accelerate
mutual technology advancements and help new software
and hardware work seamlessly together.
Page 23 of 29
Yuvrajsinh 7141 project 1
● manufacturing at scale :
We have always been in the business of defying physics
and building the future, and that’s not going to change.
Microsoft is and will remain a leading developer of process
technology and a major manufacturer of semiconductors.
We are also a leading provider of silicon globally.
To meet the accelerating global demand for
semiconductors and advance our IDM 2.0 strategy, we are
expanding our manufacturing capacity, starting with
approximately a $20 billion fab investment in Arizona and
New Mexico, a more than $20 billion fab investment in
Ohio, the acquisition of Tower Semiconductor, and plans to
invest as much as 80 billion euros in the European Union
over the next decade along the entire semiconductor value
chain.
We will give us the ability to design the best products and
manufacture them in the best way possible, every time. It
means leading in process,product,supply, and costs.
Page 24 of 29
Yuvrajsinh 7141 project 1
Financial capabilities :
Our financial capital allocation strategy focuses on building
stockholder value. We have returned 95% of free cash flow
to investors over the past five years.
Page 25 of 29
Yuvrajsinh 7141 project 1
Microsoft Cloud for Financial Services provides capabilities
to manage financial services data at scale and makes it
easier for financial services organizations to deliver
differentiated experiences, empower employees, and
combat financial crime. It also facilitates security,
compliance, and interoperability.
Page 26 of 29
Yuvrajsinh 7141 project 1
Page 27 of 29
Yuvrajsinh 7141 project 1
Percentage
(In millions, except percentages) 2022 2021 Change
Revenue
Productivity and Business Processes $63,364 $53,915 18%
Intelligent Cloud 75,251 60,080 25%
More Personal Computing 59,655 54,093 10%
Total $198,270 $168,088 18%
Operating Income
Productivity and Business Processes $29,687 $24,351 22%
Intelligent Cloud 32,721 26,126 25%
More Personal Computing 20,975 19,439 8%
Total $83,383 $69,916 19%
Sales and Marketing
(In millions,
except Percentage
percentages) 2022 2021 Change
Sales and
marketing $21,825 $20,117 8%
As a percent
of revenue 11% 12% 9%
Page 28 of 29
Yuvrajsinh 7141 project 1
Page 29 of 29
