The Microsoft service line is unique in its scope and popularity; not every company can offer so many tools, including operating systems, cloud services, office programs, and much more. Microsoft diversifies its products by price and, as a result, tries to provide the spectrum that is available to the most significant number of people for any budget and choice. The prevalence, the availability of documentation, and the quality mark distinguish Microsoft operating systems and office programs; therefore, users are ready to pay primarily for a unique product compared to similar competitors, but at the same time, the company offers many options for those who want to save money.
Consequently, it can be said that Microsoft aims to capture the entire market in every segment. Considering that there are not so many manufacturers of operating systems and new players cannot compete with the giant, the company has a free hand in setting prices. However, product diversification allows the company to cover several niches at once, where competition is already weak; therefore, this organization works for a broad market. Like any IT company, Microsoft is committed to quality, innovation, and sustainability: the excessive use of their products worldwide requires continued compliance with support for many critical software applications (Graber, 2020). Sustainability implies social and environmental responsibility, which is a mandatory requirement for the reputation of a large company (Microsoft, 2022). Therefore, according to VRIO’s analysis, Microsoft’s core values are quality, making it possible to keep a product on the market for a long time and be free in pricing.
Retaining quality aligns with the business-level strategy of capturing the entire market, with one of Apple’s few competitors also betting on building first-class products first and then diversifying to a broad audience. Microsoft’s internal resources must foster an innovative approach, including the most advanced hardware and the best experts hunted worldwide (Christopher, 2019). Consequently, the external and macro environment has only one serious competitor and a set quality bar that drives the company’s development process forward. Elimination of competitive threats is possible only at the level of quality development and product diversification. Corporate strategy defines an innovative approach, which is the only way to support a business strategy to capture the market (Lawrence, 2018). Adjustments could be more diversified to reach audiences with low purchasing power and produce products for every wallet.
References
Christopher, N. (2019). The effectiveness of HRM policies and practices. International Journal of Social Sciences, 2(1), 24-32. Web.
Graber, N. (2020). Business strategy simplified. Microsoft. Web.
Lawrence, G. (2018). Microsoft Corporation’s Generic & Intensive Growth Strategies. Panmore Institute. Web.
Microsoft. (2022). Sustainability. Web.