Updated 18 April 2021
Subject Corporations , Hero
Downloads 63
Category Business , Information Science and Technology
Topic Challenges , Company , Microsoft Corporation
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To: Michael Steep, Head of Operations in the Microsoft Innovation Team From: Organizational Development Consultant Date: December 6, 2017 Subject: The Challenges Microsoft face
Microsoft's Market Challenges
Microsoft's share in the current market is being compromised as they are the biggest maker of PCs and operating systems just as office programs. The changing client patterns have made the requirement for Microsoft to change its strategy for the organization to stay significant in the industry. Thus, this report analyzes the challenges that Microsoft is facing, how to tackle them, and why they make a difference to the eventual future of the organization.
Key Challenges
One of the primary difficulties that Microsoft faces is the absence of development. Although the organization was a leader in technology products, Microsoft has not been able to launch new products that are competent in the mobile market. With the increased use of internet and online computing, it is becoming difficult for the company to retain its market share. Another challenge that is threatening Microsoft is the lack of competitive apps within its ecosystem. The company has been lagging behind with most of its apps such as internet explorer and Bing. Other applications from Apple and Google are doing much better thus placing Microsoft under stiff competition (Chao & Kavadias, 2011).
Importance of Addressing Challenges and Recommended Initiatives
The emergence of mobile devices has increased the use of internet, thus allowing consumers to compute without involving Microsoft products. As such, solving these challenges will enable the company to retain its customers by providing products that are up to date with current trends. Consequently, Microsoft's future will be secured, as the company will have a significant share in the market, hence the ability to compete with other technology companies such as Google, Apple, and Yahoo. There are several initiatives that can be applied to help in solving these challenges. Of the most effective is differentiation, where Microsoft can focus on making unique products that add value for the consumers (Chao & Kavadias, 2011). For instance, the company can introduce the online usage of its premier products, thus earning profits and reducing competition. The company should also enhance their mobile devices to reduce over-reliance on one product line. As such, their customers would be able to access different devices from the same company. In addition, Microsoft should reduce prices, especially on new products such as mobile phones and tablets.
Reason for Selected Initiatives and Best Style of Leadership
The reason for selecting these initiatives over others is because Microsoft needs to be more innovative and at the same time retain its customers. As such, through such initiatives, it would be easy to enhance customer loyalty since the customers would get their preferred devices from a company they are familiar with at affordable prices. Therefore, the company will become more competitive, thus securing a large market share in the future. A large corporation like Microsoft would not benefit from a single style of leadership. As such, the best way to implement these strategies is by combining styles including democratic and charismatic leadership. Consequently, senior and junior employees would be in a position to come up with different ideas on how to solve the challenges at hand. Both democratic and charismatic styles enhance discussions, thus enabling everybody to participate. Consequently, only the best ideas would be implemented. The best way to implement the initiatives is through phases rather than initiating them all at once. For instance, Microsoft can start by slashing the prices of already existing mobile devices and applications. As such, they would be able to reach much more customers, hence get a variety of feedback. Consequently, the company would know what their customers want, hence have a basis for innovation (Chao & Kavadias, 2011).
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Reference
Chao, R., & Kavadias, S. (2011). Innovation Strategy at Microsoft: Clouds on the Horizon. Harvard Business Publishing.
