WINDOWS 8 CASE STUDY
SWO SW OT
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PEST PE STLE LE
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PORTER’S PORTER ’S FIVE FORCES FORC ES
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VALUE VALUE PROPOSIT PROP OSITION ION
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SWOT
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Strengths -
User r!en"#$ s%t&'re ()E's$*t%*+se s%t&'re,At least visually, Windows 8 is the simplest version of the operating system ever. While operating systems have largely seen only incremental innovations on the basic formula, i.e. the user interface mimics a real-life desktop, with documents filed in folders and pictographic icons that act as visual metaphors of a software program’s function, since Windows 1., Windows 8 represents a rupture with this blueprint. !he new face of Windows is a grid of tiles" clicking on a tile will bring up your news, or your inbo#, or your documents. $ven the famous start button, which had been occupying the lower left corner since Windows %&, is gone. !hough users can still access the old desktop, it has been relegated to an application within Windows 8. 'http())www.fastcodesign.com)1*++&)microsoft-new-designstrategy
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.!gh#$ /+'#!!e" te'0st' icrosoft hires a mi# of university and industry talent worldwide and try to retain them by offering an e#ceptional working environment, scale in resources, broad customer reach, competitive compensation and benefits.
L'rge 0'ret 3'4!t'#!s't!%n icrosoft is in the top largest /0 companies by market capitalisation, or the market value of a companys outstanding shares. 'https())www.theonlineinvestor.com)slideshows)2 slideshow3largecaps4page3*
Str%ng Rese'r3h 'n" De5e#%40ent icrosoft employs appro#imately 18, people, of which 55, are in product research and development.
6mage( 7esearch and development e#penses 0ource( http())www.microsoft.com)investor)reports)ar15)inde#.html
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Str%ng 4'rtnersh!4 &!th h'r"&'re 0'n+'3t+rers icrosoft does not focus on hardware development. 6t distributes software through riginal $9uipment anufacturers '$s that pre-install icrosoft’s software on new :;s, tablets, servers, smartphones and other devices that they sell to end customers. !herefore, icrosoft needs partnerships, which will pre-install Windows operating system on computing devices. icrosoft have distribution agreements with all of the multinational $s, such as Acer, A0/0,
itsu, ?!;, ?ewlett-:ackard, @, @enovo, 0amsung, 0ony, !oshiba, and with regional and local $s.
A"5'n3e" 4ress+re sens!t!5!t$ te3hn%#%g$ !n t%+3h s$ste0 Windows 8 features touch technology is in a state of advancement that is unprecedented in any of its competitors. !he platform allows pressure sensitivity to an e#tent that has made some third-party party app developer choose the system e#clusively for providing full technological support for their ideas, despite the popularity of Apple’s i:ad, which carries i0 as its operating system. ne e#ample is the app 0taff:ad, which has been built solely for Windows 8, as the developer did not wish to compromise the app’s 3
functionality by adopting a more popular platform with the wrong kind of technology. 0taff:ad creator
We'nesses -
Cr!t!3!s0 %5er se3+r!t$ #'&s
icrosoft’s operating systems have the greatest number of vulnerabilities, as illustrated in =igure E, and according to Fational Gulnerability
=igure E( Fumber of vulnerabilities of different operating systems 0ource( http())www.gfi.com)blog)the-most-vulnerable-operating-systemsand-applications-in-11)
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De4en"en3e %n h'r"&'re 0'n+'3t+rers =ormer icrosoft chief e#ecutive officer 0teve Hallmer has declared that icrosoft was considering making more of its own software, as the company had not been able to find a reliable design partner. !hat is the main 4
difference between icrosoft’s and Apple’s business models, and Apple’s share price has outperformed icrosoft’s consistently. oreover, if a cheap software that was able to match Window’s popularity were to appear, hardware manufacturers that formerly developed products that run Windows may choose the alternative. 'http())www.informationweek.com)itleadership)does-microsoft-really-need-to-make-its-own-hardware)d)did)11++12
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6+gs !n !rst re#e'ses % 4r%"+3ts icrosoft confirmed and then fi#ed a widespread bug in the Windows 8 release preview, which causes :;s based on newer 6ntel chipsets to freeIe on a seemingly random basis, and once it happens, there is no course of action but a hard reset of the machine. oogle also found and published a bug on Windows 8.1 which consisted of a security flaw that allowed lower-level users to become administrators, giving them access to sensivitive server functions they would normally have no right to. 'http())www.engadget.com)1&)1))google-posts-unpatched-microsoft bug) 'http())windowsitpro.com)windows)microsoft-fi#es-serious-windows8-release-preview-bug
O33's!%n'# te3hn!3'# !ss+es &!th W!n"%&s +4"'tes
Automatically installed Windows updates can cause s ystem malfunctions, such as result in missing drivers. !here are number of occasions where Windows updates have caused technical disadvantages to users with negative implications to their brand image. !he most notable case is the Windows + update of JH K5K%5 in asonevangelho)15)1)1K)new-windows-+ patch-is-effectively-malware-disables-graphics-driver-updates-andwindows-defender)M
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Internet E4#%rer &h!3h !s W!n"%&s’ r%&ser '44#!3't!%n h's een #%s!ng 0'ret =rom Nanuary 11 to
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=igure E( arket share distribution of browser applications 0ource( http())www.wKschools.com)browsers)browsersOstats.asp Thre'ts -
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P!r'3$ At the beginning of 11, 0teve Hallmer, who was the icrosoft ;$, met government officials, including /nited 0tates president bama, and ;hinese president ?u Nintao to discuss how only 1 in every 1 copies of Windows in ;hina was legit 'http())www.neowin.net)news)ballmer-%-out-of-1-copiesof-windows-in-china-is-pirated. C+rren3$ e3h'nge r'tes ;urrency e#change rates affect demand for application)operation software and hardware, and fluctuating currencies can negatively impact revenues in the global marketplace.
Ant!tr+st #'& 6n 1%%8, the /nited 0tates
E0ergen3e % 3%04et!t%rs icrosoft ;orporation’s primary competitors include some of the most prominent technology companies in the industry. Well-known brands such as Apple, oogle and 6H are e#amples. !he company faces stiff competition in several key areas of the technology sector, as it is a diversified corporation that provides many types of products and services.
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PESTLE
E3%n%0!3'# -
Ch'nges % #'%+r 3%sts 'n" 3%sts % %ther res%+r3es
:articularly, the global economic and financial crisis of + P % had proved to have highly detrimental impact on icrosoft, leading to layoffs of more than &, employees in %Lhttp())money.cnn.com)15)+)1+)technology)enterprise)microsoft->obcuts)M and this illustrates the potential impact of economic factors on business performance. ;hanges in e#change rates between /0< and other currencies is another significant factor affecting icrosoft profit reports due to the fact that the company generates substantial part of its revenues from international markets.
S%3!'#
icrosoft is greatly impacted by a range of social factors such as demographic changes, changes in consumer attitudes and opinions towards consumer electronics products and services, media perception of the brand and health and welfare of target customer segment. 6t can be argued that the impact of the ma>ority of modern social factors can be positive in relation to icrosoft products and services. -
A33ess!!#!t$ % te3hn%#%g$ t% "!s'#e" 4e%4#e
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icrosoft has a commitment to promoting accessibility, thus making it easier for everyone to see, hear, and use technology, and to personalise their computers to meet their needs and preferences. Accessibility is what makes computer use possible for many people with impairments. icrosoft’s mission is to enable people and businesses to realise their full potential, and the company claims to deliver on that commitment by striving to create technology that is accessible to everyone P of all ages and abilities. http())www.microsoft.com)enable)microsoft)mission.asp# Leg'#
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Ant!tr+st #'&s http())www.reuters.com)article)15)8)*)china-antitrust-microsoftid/0@KFQW1;&158* A recent probe by ;hina’s 0tate Administration for 6ndustr y and ;ommerce into the ways icrosoft distributes its 6nternet $#plorer browser and Windows edia :layer and sells its ffice and Windows software in ;hinaL1M can be mentioned as a relevant e#ample of impact of a political factor.
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C'r%n Ne+tr'# C%04'n$
icrosoft made a commitment to make their operations carbon neutral in ay 1, and thus achieve net Iero emission for their data centers, software development labs, offices, and employee business air travel. https())www.microsoft.com)environment)our-commitment)our-footprint.asp# -
:reener IT !n!t!'t!5e
icrosoft is committed to developing software and technology that helps people and organisations reduce their impact on the environment. 0ome pro>ects include $nergy-smart buildings and 7educing !ravel and ;arbon with /nified ;ommunications. -
C#%+" C%04+t!ng
;loud computing is about using a network of remote servers hosted on the 6nternet to store, manage, and process data, rather than using a local server or personal computer. icrosoft AIure is icrosoft’s cloud computing platform, which allows the building, deploying, and managing of applications and services through a global network of icrosoft managed datacenters. PORTER’S FIVE FORCES -
Thre't % ne& Entr'nts 8
Windows is the standard operating system in :;s, as can be seen in =igure E. Hasically, Windows competes against itself with its outdated operating systems 'http())readwrite.com)1)8)K)microsofts-biggest-windows-8competitor-itself. 6t has many partnerships and alliances with riginal $9uipment anufacturers '$s that help maintain its position. Hesides that, other competitors, such as Apple, have small operating system market share. !o effectively compete, icrosoft affirms that they provide Bchoice, value, fle#ibility, security, an easy-to-use interface, compatibility with a broad range of hardware and software applications, and the largest support network for any operating system to customers.
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=igure E( perating systems market share 10
0ource( http())www.netmarketshare.com)operating-systemmarketshare.asp#2 9prid3%49pcustomb349ptimeframe349psp315K49pnp31K -
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P%&er % s+44#!ers 0uppliers do not possess much bargaining power, considering that Windows is the most reliable operating system in the market, and :; manufacturers find it hard to sell their products with any other system. P%&er % 6+$ers icrosoft has a large number of faithful customers and it sells a comparatively low volume of its products to each buyer, so that they have little significance as individuals. ;ompanies, however, have more significance as potential buyers due to larger volumes, and they are usually resistant to change of their operating system, especially from Windows +, which maintains the basic format of former Windows’ versions, to Windows 8, an operating system that has had dramatic changes in relation to past versions and is more tablet-oriented. !here is a higher bargaining power for these customers. A5'!#'!#!t$ % S+st!t+tes perating systems such as @inu# and ac 0 have e#perienced increasing acceptance in the market, though it is still primarily dominated by Windows. Windows E: and Windows + actually represent the most fierce competition for Windows 8, as some users are >ust comfortable with the old interface and reliable system.
VALUE PROPOSITION
http())www.financial-planning.com)video)!he-Windows-8-Galue-:roposition*8KKK*-1.html http())www.onwallstreet.com)video)!he-Windows-8-Galue-:roposition-*8KKK*-1.html !om =eher, icrosoft’s =inancial 0ervices 6ndustry
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