Explain the economic characteristics of Microsoft by applyingQuestionExplain the economic characteristics of Microsoft by applying (a) Porter's FiveForces Framework, and (b) Economic Attributes Framework. Explain the strategies of your assigned organization by applying the Framework for Strategy...
Explain the economic characteristics of Microsoft by applying (a) Porter's Five
Forces Framework, and (b) Economic Attributes Framework.
Explain the strategies of your assigned organization by applying the Framework
for Strategy
Analysis.
Answer & Explanation
1. Porter's Five Forces Framework:
(a). Threat of New Entrants (Barrier to Entry)
Moderate Microsoft has high resources and a strong brand presence;
therefore, for new entrants, it is hard to compete with them. However, the
software industry is on its way to evolution, and innovation in products
can still let new companies enter the market.
, (b). Bargaining Power of Suppliers
Low Microsoft has a diversified supplier base, and no single supplier
enjoys disproportionate bargaining power. The company is in a position
to negotiate prices and other terms with the suppliers.
(c). Bargaining Power of Buyers
Moderate Microsoft's customers enjoy some bargaining power due to the
availability of alternate products, whether to individual consumers or
business enterprises—however, strong branding and product offerings by
Microsoft significantly limit the bargaining power of the buyers.
(d). Threat of Substitute Products or Services
Medium Microsoft has a number of substitutes that can fulfill most of its
primary activities regarding operating systems, productivity software, and
cloud services. However, on all counts, Microsoft's relatively more
assertive position and constant innovation diminish the threat of
complementary products to a minimum.
(e). High Competitive Rivalry among Competitors
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller newage. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.