microsoft porter’s five forces are illustrated in figure below: threat of substitute products or services for microsoft is low. indirect substitution for microsoft products and services belonging to productivity and business processes segment include a wide range of stationary products, planners and organizers. the level of buyer propensity to choose substitute products or services to microsoft’s products and services can be assessed as low. although, there is generally low buyer propensity to choose substitute products and services as discussed above, the absence of switching costs to substitutes may increase their threat to a certain extent. there are large numbers of suppliers around the globe and microsoft is the biggest customer in terms of purchase volume for the majority of its suppliers.
the multinational technology company can replace the majority of its suppliers for little or no cost for the business. for microsoft, the cost of supplies relative to selling price of its products is low and this can be highlighted as another factor that decreases supplier bargaining power. in more personal computing segment, on the other hand, alternative platforms and devices, mainly from apple and google, providers of entertainment services such as sony and nintendo represent competition for microsoft. it can be argued that high industry growth rate attracts more competitors in the market and as such, the level of competition in the global marketplace is expected to further intensify in the future. moreover, the report contains analyses of microsoft leadership, business strategy, organizational structure and organizational culture.
microsoft company has intense pressure in the software competition over google and apple since they introduce operating system in both mobile device and pc. but still microsoft conquer the market of operating system and software which resulting in more than 90% market share of operating system. therefore, to archive that vision, they decide to reduce the cost of software and service and make sure everyone can afford to use it.
it allows industries to outsource their cloud computing and pay for what they have used. hence, this prove that microsoft use it strategies to sustain competitive advantage, besides that, the company focus more on learning techniques and doing deep research rather adopting it in order to continuously come up with new ideas, innovations and use those ideas to enhance their software and service for future business competition. to conclude, porter’s five force analysis shows that microsoft company has currently dominant the software, operating system and cloud computing. furthermore, with competition getting stronger, microsoft decide to pursed is strategy in order to differentiate their product their rivals, such as azure platform, xbox and operating system, they are trying to be up-to-date with technology whenever is introduced.
michael porter developed the five forces analysis model to understand the external factors significant to an organization’s industry environment threat of substitute products or services in microsoft porter’s five forces analysis 1. lack of direct substitutes 2. low buyer propensity to porter’s five force analysis shows that microsoft company has currently dominant the software, operating system and cloud computing., microsoft pestel analysis 2020, microsoft pestel analysis 2020, microsoft pestle analysis, threat of new entrants microsoft, microsoft swot analysis.
porter five forces analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. microsoft porter five forces model (porter analysis) of microsoft competitive rivalry – high threat of new entrants – medium bargaining power of an analysis of porter’s five forces should further explain the industry that microsoft is in. 1. competitive rivalry (strong):., five forces analysis technology industry, strategic analysis of microsoft pdf, microsoft swot analysis pdf, microsoft swot analysis 2021, microsoft brand analysis, threat of new entrants in software industry, microsoft differentiation strategy, report on microsoft company, microsoft competitors, microsoft micro environment. what kind of competitive forces does microsoft command in pc market? how do you analyze 5 forces? is microsoft a differentiator? what is microsoft’s competitive advantage?
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