Review this video by Microsoft’s CEO of Global Strategy: https://www.youtube.com

Question

Review this video by Microsoft’s CEO of Global Strategy: https://www.youtube.com/watch?v=Uu-Ol78lCi0. Note the comments about the troubles Microsoft has had with emerging markets. Of the three generic strategies discussed by Porter, which does Microsoft appear to embrace? What recommendations do you have for Microsoft? Also review the Emerging Markets: Microsoft’s Evolving China Strategy in Chapter 1 of the Peng text. Choose either an industry-based, resource-based, or institution-based view to analyze the issues presented in the case.

Explanation / Answer

During the interview it was discussed that the markets are going through a period of volatility and as per Mr. Satya Nadella the CEO of Microsoft, the company is doing well currently in the developed market including USA. In traditional market they are strong. Emerging markets are currently challenging for them and they are trying new business model in the emerging markets as these markets are not the same as the traditional markets they do business in. These markets bypass entire generation of technology and come to something new and going to require a lot more diversity in the approach that the Microsoft take both in terms of products and business model. Things are fast moving and the ability to really learn from that is important and that’s why one of the key things the company have changed in their own matrix which is the usage, which is wherever they are seeing something is getting used and that is to ask for an early indicator that is something the people want. He says then lets figure out how to make that things great and then try out modernization. Its a very different approach which used by Microsoft and its a really new platform and new ways to delivering things enable company to do it.

Windows cannibalization of GRIM OPTION & FREEMIUM MODEL which is Microsoft appear to embrace. I my opinion Microsoft has to compete with China’s Linux in the emerging market and have to develop a new strategy to compete with. China has a footprints in all the emerging as well as developed markets and it is becoming a leading country as far as technology is concerned.

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