Business Case Analysis: Apple And Microsoft

Microsoft Case Analysis

MGS 4999 Online

Xu Wanxin/Estelle

0930872

2017/4/24

Introduction

Apple and Microsoft have long been fierce competitors since the mid-1970. In the early period, Microsoft was the leader of PC industry. It has a huge customers base and about 90 percent of PCs run windows. While the Apple only took very few market shares, and near bankruptcy in 1997. However, the situation took a turn since 2000. Microsoft started to go down and Apple began to revitalize. With the introduction of iPhone and iPad, Apple revolutionized the smartphone market and created tablet computer industry, and the PC market is declining. The competitive advantage of Microsoft turned into a competitive disadvantage. In 2012, Apple became the most

Nowadays, the society pays more attention to “green”. Microsoft can catch this opportunity to enhance the sustainability, for example, it can introduce green products, and simplify product packaging.

Legal factors are related to policy. Some countries fight against pirates, which is good for Microsoft’s development. But in those countries that don’t pay attention to pirates, it would be a threat for Microsoft.

Five Forces Model Analysis The Threat of Entry of Microsoft is low. There is a big barrier to enter into this industry, such as investment, technology and knowledge. And because of Microsoft’s economics of scale, it’s not easy for new entry to achieve in a short time.

The Power of Suppliers of Microsoft is low because there are a large number of suppliers worldwide, and Microsoft is one of the biggest buyers. If the suppliers want to retain customers, they need to keep low prices.

The Power of Buyers is middle to high. For PC customers, most are more used to Windows operating system. As for other products, though Microsoft is a famous brand and has long history, but nowadays, more and more similar companies rise, buyers can compare these products, and have more

As the mobile phones and table computer become more and more prevailed and intelligent, more and more customers prefer to buy smartphone and table computer for their daily use, the PC seems not so important anymore. However, it is bad for Microsoft. As we know, Microsoft is famous for Windows operating system, which is commonly used in computer, while it is late in mobile phones. When Microsoft realizes the crisis, and introduces Windows phone and wants to recapture the mobile phones and table computer market, it’s too late because the market has been occupied by iOS and Android operating system. The market share of Windows phone is negligible.

In addition to this, its Windows operating system on computer is also not good. Though it often updates the system, it seems no innovation, and customers are tired of it. It is supported by original huge users base. On the contrary, the penetration rate of OS X is not so high, but its design is so beautiful and interesting, customers would have new experience difference with Windows.