Analysis of Microsoft's Strategy Development

Abstract

The purpose of this paper is to examine the corporate strategy of Microsoft. Microsoft was founded in the US in 1975 and it has been 45 years since then. As one of the largest IT companies in the world, Microsoft is undoubtedly successful. Its success is inseparable from its corporate strategy. This report will use PESTEL model to analyse the macro environment where Microsoft is located and 5Forces model to analyse the micro environment that Microsoft is involved in. In this context, the report uses the SWOT and BCG models to analyse how Microsoft allocates its limited resources to a rational product mix in order to reduce risk and ensure profitability. The report concludes with some suggestions on the problems of Microsoft. This report provides implications for Microsoft and companies similar to Microsoft in their strategic planning.