Microsoft Inc.

Prepared by
Ambuj Gupta (09) Tanvi Arora (68) Priyansha Rastogi (48) Snigdha Singh (64) Dhruv Aggarwal (20) Ritesh (54)

INTRODUCTION
Microsoft Corporation is an American multinational software corporation

headquartered in Redmond, Washington that develops, manufactures,

licenses, and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the worlds largest software maker measured by revenues. It is also one of the worlds most valuable company.

Microsoft Mission
Microsofts mission
is to provide people

and businesses
with the power of computing any time, anywhere, and on any device

Microsoft Vision A computer on every desk, and in every home.

Microsoft History
Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer OS market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems.

The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three
billionaires and 12,000 millionaires from Microsoft employees.

Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions.

In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date. As of 2013, Microsoft is market dominant in both the PC operating system and office suite markets (the latter with Microsoft Office).

The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles, and the upcoming Xbox One console), the digital services market (through MSN), and mobile phones (via the Windows phone OS).

In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the launch of the Microsoft surface tablet computer.

Organizational Structure
Bill Gates (CEO) and Steve Ballmer (President) are Microsofts most visible leaders. They work with a Business Leadership Team to make sure Microsoft is responsive to its customers and creating great technology

The other members of Microsofts Business Leadership Team are:

Bob Herbold, Executive Vice President, Chief Operating Officer, Worldwide Operating Groups Jim Allchin, Sr. Vice President Business & Enterprise Division, Consumer Windows Division Orlando Ayala, Sr. Vice President, South Pacific & Americas Region

Brad Chase, Vice President, Consumer & Commerce Group

Jon DeVaan, Vice President, Consumer & Commerce Group Laura Jennings, Vice President, Worldwide Strategic Planning Joachim Kempin, Sr. Vice President, OEM Divison

Greg Maffei, Sr. Vice President, Chief Financial Officer, Finance

Paul Maritz, Group Vice President, Developer Group Mich Mathews, Vice President, Corporate Communications Bob Muglia, Sr. Vice President, Business Productivity Group

Bill Neukom, Sr. Vice President, Law & Corporate Affairs

Jeff Raikes, Group Vice President, Worldwide Sales & Support

Business Division
The Microsoft Business Division produces Microsoft Office including Microsoft Office 2010, the company's line of office software. The software product includes Word (wordprocessor), Access (a relationaldatabase program), Excel ( a spreadsheet progrm), Outlook (Groupware, frequently used with Exchange Server), PowerPoint (presentation software), Publisher (desktop publishing software) and Sharepoint. The division also develops enterprise resource planning (ERP) software for companies under the Microsoft Dynamics brand. These include: Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, and Microsoft Dynamics SL. They are targeted at varying company types and countries, and limited to organizations with under 7,500 employees.

Entertainment Division
The Entertainment and Devices Division produces the Windows CE OS for embedded systems and Windows Phone for smartphones. Microsoft initially entered the mobile market through Windows CE for handheld devices, eventually developing into the Windows Mobile OS and now, Windows Phone. Windows CE is designed for devices where the OS may not directly be visible to the end user, in particular, appliances and cars. The division also produces computer games that run on Windows PCs and other systems including titles such as Age of Empires, Halo and the Microsoft Flight Simulator series, and houses the Macintosh Business Unit which produces Mac OS software including Microsoft Office 2011 for Mac.

Marketing
In 2004, Microsoft commissioned research firms to do independent studies comparing the total cost of ownership (TCO) of Windows Server 2003 to Linux; the firms concluded that companies found Windows easier to administrate than Linux, thus those using Windows would administrate faster resulting in lower costs for their company (i.e. lower TCO). A study by the Yankee Group concluded that upgrading from one version of Windows Server to another costs a fraction of the switching costs from Windows Server to Linux, although companies surveyed noted the increased security and reliability of Linux servers and concern about being locked into using Microsoft products. Another study, released by the Open Source Development Labs, claimed that the Microsoft studies were "simply outdated and one-sided" and their survey concluded that the TCO of Linux was lower due to Linux administrators managing more servers on average and other reasons.

Environment
Microsoft is ranked on the 17th place in Greenpeace's Guide to Greener Electronics (16th Edition) that ranks 18 electronics manufacturers according to their policies on toxic chemicals, recycling and climate change. Microsoft's main U.S. campus received a silver certification from the Leadership in Energy and Environmental Design (LEED) program in 2008, and it installed over 2,000 solar panels on top of its buildings in its Silicon Valley campus, generating approximately 15 percent of the total energy needed by the facilities in April 2005. Microsoft makes use of alternative forms of transit. It created one of the worlds largest private bus systems, the "Connector", to transport people from outside the company; for on-campus transportation, the "Shuttle Connect" uses a large fleet of hybrid cars to save fuel. The company also subsidizes regional public transport as an incentive. In February 2010 however, Microsoft took a stance against adding additional public transport and high-occupancy vehicle (HOV) lanes to a bridge connecting Redmond to Seattle; the company did not want to delay the construction any further. Microsoft was ranked number 1 in the list of the World's Best Multinational Workplaces by the Great Place to Work Institute in 2011.

PRODUCTS @
Computers Surface All-in-ones + desktops Laptops + Ultrabooks Accessories Tablets + convertibles PC games Office Office for Windows Office for Mac Office University All Office apps Windows Windows 8 Windows 8 Pro Xbox Xbox One Xbox 360 Xbox LIVE

STORE
Windows Phone Windows Phone for AT&T Windows Phone for Verizon Windows Phone for T-Mobile Accessories Computer accessories Xbox 360 accessories Windows Phone accessories PC gaming Audio accessories Additional software Visual Studio Visio Project Mapping PC games

Microsoft's 10 Best Products Of All Time

Microsoft Arc Touch Mouse Excellently designed accessories.

curves for use and flattens for storage.

a Bluetooth connection, long battery life, and precision scrolling. won many awards and accolades. Flight Simulator A series of programs that were marketed as video games. According to Wikipedia, "Flight Simulator is one of the longest-running, best-known

and most comprehensive home flight simulator programs on the market."

As of 2009 (the game's 25th anniversary) Flight Simulator was the longest-running software product line for Microsoft.

Original Xbox Proved that Microsoft could create hardware and appeal to gamers. Introduced gamers to Xbox Live. One of the most successful divisions in Microsoft today Windows 95 Sold a record-setting 7 million copies in the first five weeks. First appearance of the Start menu, taskbar, and minimize, maximize, and close buttons on each window. Built-in Internet support, dial-up networking, and Plug and Play capabilities

Microsoft Exchange Server

Microsoft Exchange Server was released in April 1993. It has since become an enterprise champion. The server is relied upon by millions of businesses as a secure way to manage email, calendars, and more. Exchange's major features consist of email, calendars, contacts and tasks that work with Microsoft Outlook. Exchange also wirelessly syncs users email, calendar, contacts with major mobile devices and browser-based access to information.

Windows XP Most popular operating system to date. The OS was released in October 2001 Windows XP 64-bit Edition was the first Microsoft operating system that used 64-bit processors designed for working with large amounts of memory. XP made projects such as movie special effects, 3D animations, engineering, and scientific programs possible. MS DOS The company purchased QDOS from Seattle Computer Products put its own touch on the software. Microsoft specifically modified QDOS for IBM PCs and MS DOS was born. The first edition, MS-DOS 1.0, was launched in 1982. The version shipped with IBM's PCs was called PC DOS. Microsoft Office Office is one of Microsoft's most useful and popular products. Besides being an excellent productivity application, Office is extremely easy to develop for. Office remains the go to productivity suite because any attempt to topple Office means declaring war on the army of in-house and third-party developers who have built their livelihoods around the suite's expanding library of automation and integration APIs. In the meantime, we're eagerly waiting for Microsoft Office to finally hit tablets on Windows 8 and the iPad.

Windows 3.1 Windows 3.1 was a 16-bit operating system that laid the foundation for today's modern operating system. 3.1 debuted in 1992 and became the first version of Windows to be widely distributed with new PCs. Windows 3.1 essentially stamped Microsoft's dominance and began the Golden Age of Windows. 3.1 introduced the organization of programs, a dedicated file manager, true-type fonts, a built-in screen savers, minesweeper and solitaire, and a host of other improvements. Xbox 360/Kinect Xbox 360 competed directly with the Playstation 3 and stood its ground. More than 70 million Sold Introduced more storage, faster performance, and wireless controllers. The Kinect, which was introduced in 2000, has been hugely successful. Kinect is a new type of motion based controller that allows users to interact with their television through movement. The peripheral has spawned many imitators and sold over 18 million units

Differences Between Macs And PCs

Apple prides itself on design Apple spends years working on how its products look. The company is all about the details, even the internals of its computers are beautifully constructed. PC design depends on the company making them, but they're usually not as attractive as Macs. However, we have seen some nice copycats like Dell's newest Ultrabook.

Windows has software that is more widely available there are still some programs that are Windows specific. For example, Microsoft Office for Windows has more features and functionality than the Mac version. Auto CAD is another example.

Macs are more expensive On average, Macs tend to be noticeably more expensive than their PC counterparts. A quick search on sites like bestbuy.com shows that even in the super popular Ultrabook category, you can get a comparable PC for hundreds less than the MacBook Air. And then there are the super-expensive MacBooks like the new MacBook Pro with Retina display. That thing starts at $2,200.

Windows is better for hardcore PC gamers

Because of how highly customizable Windows machines are, gamers rend to prefer them. can boost up your computer's performance with a better graphics card add much more memory to handle power-hungry games. Macs typically can't compete on the gaming side unless you're willing to spend a huge amount of money.

You get better customer support with a Mac When your Mac breaks, you can book and appointment and take it to your local Apple Store. There, a specialist can help you out with your Mac. If the problem can be fixed in one session, there's usually no charge. Microsoft does have a few retail locations, but not nearly as many as Apple does. The two operating systems look different, but are still easy to use If you're making the switch from a PC to a Mac, it can be pretty intimidating using Apple's operating system at first. But the truth is, Macs are far from scary. Instead of a Start menu, Apple gives you a Finder. This is where you locate all your apps, documents, and other files. Its very easy to get around both systems. Apple's operating system does have one big advantage, however. All Macs come bundled with a suite of useful apps like iPhoto, Mail, Garage Band, iMovie, and more. Windows has a few similar apps, but they're simply not as good.

Macs tend to be safer against malware and viruses

With the increased popularity of Mac computers, hackers are starting to target the system. In April, there was a Mac security threat called the LuckyCat attack. LuckyCat took advantage of an exploit in Microsoft Word documents, giving a remote attacker the ability to plunder infected systems and steal data by hand. Apple's recent operating system release, Mountain Lion has added some features that increase security, but we're sure as time goes on and the system continues to gain attention hackers will target OS X directly. That being said, Macs make up such a small percentage of computers out there, that most hackers don't waste their time with it. Windows PCs are notoriously know for hacks and viruses. It is a requirement on any PC to have anti-virus software installed.

PCs have a larger variety of hardware to choose from

There are many different PC manufacturers, giving the consumers a lot of different options and brands to choose from. Microsoft simply makes the software, but companies like HP, Acer, Lenovo, Dell, and many others make the hardware. This offers variety and features that can fit anyone's budget or preference. Apple makes the hardware and software, so you only have a handful of options if you want to buy a Mac.

Want the best of both worlds? Macs can run Windows! Macs have the ability to run Windows either through a virtual machine or directly

on the system. Every Mac has a built-in program called Boot Camp that lets you
install Windows on your machine. If you want, you can divide space on your hard drive between Windows and Mac OS X so you'll have both operating systems on the same computer

Strenghts
Brand loyalty Over the years, Microsoft has been the leading OS and software provider, which resulted in more than 90% market share for PC OS. Most of us grew up using its easy to use OS, are familiar with it and will keep using it. Few other brands are capable to compete with Microsoft for this reason. Even open source OS, which

are completely free and well suited to use for common user, find it hard to
attract users. Brand reputation According to Interbrand, Microsofts brand is the 5th most valuable brand in the world, valued at $ 57.8 billion. Forbes listed the corporate as the 7th most reputable business in the world. Brand reputation leads to higher sales and greater market share.

Easy to use software Windows OS and Office software products are so popular not just because Microsoft has great monopolistic power, strong distribution channels and good brand reputation but also because its products are of great quality and really easy to use. Strong distribution channels The company works with all the major computer hardware producers such as Lenovo, Dell, Toshiba and Samsung and major computer retailers to make sure computers would be sold with already pre-installed Windows software. The company also invested in Dell

and Nokia to tighten its relationships with these companies.

Robust financial performance Microsoft grew its revenues by 20% from 2008 to 2012 and holds more than $63 billion of cash and cash equivalents that can be used for acquisitions and substantial investments into R&D. Acquisition of Skype With nearly 300 million users, Skype is a significant boost to Microsofts online presence

and have a lot of potential in generating income from online advertising.

Weakness
Poor acquisitions and investments Few of Microsofts acquisitions were successful and brought not just revenues and products but new skills and competencies to the company. Massive, LinkExchange, WebTV, Danger are just few examples of multimillion acquisitions made by Microsoft but soon shut down or divested.

Dependence on hardware manufacturers

Microsoft is a giant software corporation but it does not produce its own hardware and depends on computer hardware manufacturers to develop products that run Windows OS. If cheap and popular alternative OS would appear, hardware manufacturers may simple choose the alternative and Microsoft could do little to change the situation.

Criticism over security flaws Windows OS, the main Microsoft product has been heavily criticized for being so weak against various viruses attacks. Compared to other OS, Windows is the least protected against such attacks.

Mature PC markets
Only recently has Microsoft entered the mobile technology sector and still heavily depends on its OS and software sales for standalone and laptop computers. The market for these products has matured and Microsoft will find it harder to grow revenues in these sectors. Slow to innovate Microsoft has huge R&D resources and great position to enter new markets with

innovative products but constantly failed to do so. It had an opportunity to be the first
player in online advertising but missed the opportunity. Its entrance to mobile OS was also too late, while Google and Apple captured the market share.

Opportunities
Cloud based services. Microsoft could expand its range of cloud services and software as the demand for cloud-based services is expanding.

Mobile advertising. Mobile advertising markets are expected to grow in double

digits over the next few years and Microsoft has a great opportunity to tap into these markets with its mobile OS.

Mobile device industry. Smartphones and tablets markets will grow steadily over the next few years and Microsoft could exploit this opportunity by introducing more of its own tablets and a new company phone.

Growth through acquisitions. With a huge reserve of cash Microsoft could start acquiring new startups that would bring new technology, skills and competences to the business.

Threats
Intense competition in software products Microsoft is more than ever on the pressure to introduce successful OS both in PC and mobile markets as such competitors like Google and Apple have already established positions.

Changing consumer needs and habits

Customers shift from buying laptops and standalone PCs to buying smartphones and tablets, the markets, where Microsoft has only a modest market share and may never establish itself.

Open source projects Many new open source projects are coming to the market and some of them became quite successful, such as new Linux OS and Open Source Office. Open source projects are free and so they can become an alternative to expensive Microsofts products.

Potential lawsuits Microsoft has already been sued for many times and lost quite a few large scale lawsuits. Lawsuits are expensive as they require time and money. And as Microsoft continues to operate

more or less the same way, there is high probability for more expensive lawsuits to come.

Conclusion : SWOT Analysis

Microsoft with its apparent success in the present must face problems that will be evident in

the near future. Although Microsoft is a leading company in its chosen field of software
industry, the dominance and the monopoly that it enjoys can be erased and its dominance in the market can be eclipsed by other new companies in the industry. The paper has identified several problems inherent to the company and have highlighted the effects that these negatives

factors will bring on the over all stability of the company in the future. Problems such as poor
designs, the challenge of other competitors like Linux and tightening government control are some of the hindrances that will eventually obstruct Microsoft in its road to progress. To eliminate and to diminish the impact of these problems and difficulties, the company must

undertake needed reforms and initiate policies that will improve certain aspects of the
company.

PESTL ANALYSIS
Political

Legal

economical

technological

social

POLITICAL AND LEGAL

In 2009, Europe dropped their antitrust case against Microsoft after Microsoft agreed to offer consumers a choice of rival web browser. This case cost Microsoft 1.67 billion in fines and penalties (Obrien, New York Times 2009).

Taxation policy Political stability Change of governments and political structure

In 2009, the Russian federal anti monopoly services investigated Microsoft for antitrust violation, the charge cutting off sales of XP

Brazils government is abandoning Windows in favor of opensource software like Linux. The reason is that for every work station, the government pays Microsoft fees of around $500. If they switch to open- source, they pay less. Brazil could save $120 million a year (Kingstone, BBC News).

Change in policy Law structure change Ban on products

The political and legal environment is a threat as the world regions that have the greatest information technology growth opportunities have the least legal protection against the rampant copyright infringement growth.

Economical
Money supply Exchange rates Economic growth Unemployment rate

A bad economy and high unemployment rates mean that consumers spend less on computer products, which leads to a downturn in the industrys growth and production.

Social
Consumer preference Living status (tech-force, broad mind) Average population age While technology growth is still rapid, consumers are now expecting better service from their electronic gadgets

Companies in this industry are encouraged to develop a single gadget that will consolidate the electronic functions currently performed on multiple devices.

Technological
Software updates Accessibility Enhanced security Size of hardware

Microsoft Windows is the current computer operating system of choice. However, with their extremely high priced operating system, how long until consumers start looking for alternatives and leave

Two main competitors: MAC for Apple LINUX less market share

WHAT WILL HAPPEN IF MAC BECOMES COMPATIBLE WITH DELL OR OTHERS?

Another potential competitor is Google. Google has already started Google Chrome, a web browser that is compatible with all operating systems. Also, Google has a presence in the cell phone industry with android, an operating system for cell phones.

CONCLUSION
Technology is the key driver which could influence impulsively to Microsoft business Strategy. Microsoft's sustainability of business is greatly dependent on the ability of competitors to provide better solutions at competitive low prices If Microsoft fails to acquire or innovate the substitute next level technology for their platforms, the existing strategy have better chances to fail.

Porters Five Force Analysis

Threat of New Entrants

Microsoft can limit the threat of new entrants because Windows

is the standard operating system in PCs.

Essentially, Windows is competing against itself with its outdated operating systems, Windows XP and Vista. To combat apathy, Microsoft implemented a discount on an upgrade to Windows 7 . For those customers interested in switching to a different operating system, they would most likely shift to the substantially more expensive Mac computer the high cost of

switching companies.

Bargaining Power of Suppliers

Windows 7, there is barely any pressure from suppliers. Microsoft installs Windows in every out-of-the-box PC sold. Since there is not another operating system like Windows for the PC, PC manufacturers have no other options: they cannot switch to another product; there are no substitutes. To cope with the power of suppliers, Microsoft has created a product that is important to buyers, and some may say, they cannot do without: If you

deploy a four or five-year old operating system today, most people will ask
their boss why the heck they dont have the stuff they have at home, according to Microsoft CEO, Steve Ballmer .

Windows 7 is a substantial upgrade from its earlier versions.

With the price of Macs, but the allure of its operating system, Windows 7 can encroach on Macs business.

Bargaining Power of Buyers

Microsoft has such a monopoly on the PC operating system game that their buyers have no choice but to purchase Windows.

In this instance, more buyers means less power for individuals.

However, customers do have power if they purchase in large volumes. Companies willing to upgrade to Windows 7 have a lot of power. It is those that are not interested in upgrading that can pose the largest problem for Microsoft since Windows is their most profitable technology .

Threat of Substitutes
Microsofts Windows operating system is unique in terms of users trying to find a comparable product.

Most users will notice how similarly designed Windows 7 is to

Macs desktop and operating system. So, if users were interested in changing products, they would

have to completely change their computer, their comfort with

a PC, and their knowledge of how PCs work. Ultimately, it is an emotional change. If the users were to change to a Mac, they may not be able to view its operating system in the same light as Window 7; it is

a different experience.

Competitive Rivalry
Microsoft and Apple have been competitors for decades now. It is obvious that Macs operating system influenced Windows 7.

Nevertheless, both companies are not the same in size, so it is not a highly
competitive market.

In addition, the computer industry is not fully matured which leaves plenty of room for future competitors. Microsoft has little to worry about now in terms of Windows 7s competition. The main competition is Apples Mac, but as we discussed, it is more expensive and requires time to grasp its operating system.

Microsoft proactive approach Windows OS- Release of Graphic based OS made Microsoft popular
and continuous updates make Microsoft top in this segment. Office suite and continuous development-Office suite is the most

valuable product of Microsoft.

Integration of disk defragmenter and compression in windows 95. Integration of Internet explorer in Windows OS. Acquisition of Hotmail. Acquisition of Skype. Cloud based server. X-box.

When people think of innovative tech companies, they generally dont think of Microsoft. Microsoft has actually had a history of innovative products and ideas, but theyve failed to execute them over and over again. E readers-Microsoft had a prototype e-reader ready to go in 1998, but they

Where Microsoft Fails-

never used it. From 2007 Amazon rules this segment through kindle.
Smartphones- Windows developed mobile os in 2000. But they never make it better till the deal with NOKIA in 2010. In 2007 apple launched the first mobile based on IOS, and ruled the smartphone segment. Tablets-Microsoft released Windows XP Tablet PC Edition in 2002, eight years before Apple released the iPad. Web Browsers: Internet Explorer-Internet Explorer was struggling to catch up with modern browsers as previous versions were far surpassed by Mozilla Firefox and Google Chrome.

Where Microsoft Fails Web-Based Email: Hotmail-Microsoft purchased Hotmail in 1997. Google released Gmail in 2004. Gmail was far superior to Hotmail when it was released, featuring a much cleaner interface, conversation views, a huge amount of storage space, and a very effective spam filter. Microsofts Outlook.com is now actually fairly competitive Smart Watches- Microsoft actually had a smart watch platform, known as the SPOT watch, which was discontinued in 2008. Perhaps the SPOT watch discontinued may be because of bad experience, subscription fee, lack of vision or marketing. Operating Systems: Longhorn- Microsofts Longhorn development went so poorly that,

after three years of development, all of the work was thrown out and they started again on
the operating system that would become Windows Vista. At that time apple launched Apples OS X. It was quite fast and stable. PC Hardware- Apple has the MacBook Pro with retina display, a powerful, well-built

machine with a high-DPI display and high-quality track pad. Googles Chrome OS ecosystem
even has the Chrome book Pixel.

Where Microsoft Fails Music- Apple was nearly dead in the late 1990s. Apple was saved by iTunes and the iPod, which provided a legal and convenient way to download and share music. Microsoft had an early head start making software for the portable music market, but did not find good hardware partner. In 2006, Microsoft came up with its own product -- the Zune with wi fi sharing but it fails. Search engine- Internet Explorer was so successful that Microsoft had to spend years fighting off antitrust suits that now seem silly. Those clashes probably distracted the company from the Internets real money-maker search products. Microsoft later realized that Googles success was due to its monopoly in searchbased ad sales. Cloud-based Office apps such as Google Docs- Microsoft invented this in early 1999. I was part of that, but we couldnt figure out any way that the Office team would be interested or see it as other than a distraction.

Business and Marketing Strategy of Microsoft

Microsoft does its best to create a corporate culture, which gives a broad business environment. The GD&I (Global Diversity & Inclusion) is a strategy that is a fundamental link in the Microsofts business priorities. Microsoft is focused on building an employ channel, by hiring the world's greatest

minds, no matter how young they are.

The marketing strategy of Microsoft includes a bond with different schools and colleges, or professional organizations. In the same marketing strategy of Microsoft, they run a worldwide program, in which different high school girls are allowed to have a session with different Microsoft employs Microsoft provides their leaders with the very best cultural capability training. hey

Future Strategies Being able to serve diversified and emerging markets is key to Microsoft future. Like Africa, china etc. Microsoft is a transformation from being a software company to being a device and service company. On top of devices they are focused on Office 365 and X BOX, Windows mobile and mainly Windows os. Microsoft planning to open retail stores in early 2013 for direct selling and customer interaction. Microsoft Plans New Data Centers in Singapore, Australia. Yearly updates to windows software's will be the norms soon.

Microsofts future plans for a streaming operating system. Fast booting by a

virtual PC operating system through remote storage. Microsofts next Windows version will include cloud network integration.

Microsoft : Progress with e commerceThe impact of new technology is one of the most exciting and challenging of all the external influences on a company. digital technology will dramatically increase the speed at which business is conducted. Bill Gates himself coined the phrase Business @ the speed of thought. Digital nervous system- It is a combination of hardware and software which enables the firms internal processes to operate smoothly and quickly, which means it can respond rapidly to any change in the business environment. Direct marketing and selling-Businesses can expand their potential market and the services they offer by using the Internet to contact customers daily.

New technology in corporate services-To reduce the ambiguity of paper work

Microsoft developed MS Market, an Intranet application. The cost for processing direct purchase orders has dropped from $60 per purchase to only $5.

Microsoft : Progress with e commerce Supporting financial services-Microsoft developed strategic partnership with The Royal Bank of Scotland, to support its services via internet. The rationalization of a firms supply chainMicrosoft launched a Value Chain Initiative (VCI) to dramatically improve the efficiency of the supply chain, from the raw materials right through to the point of sale. More than a hundred software vendors and Microsofts partners are dedicated to achieving the VCI goal. Electronic supply chains offer business benefits in several ways: I. II. III. Greater speed, accuracy and reliability Decreasing the cost of transactions and making the system accessible to all sizes of firm Simplification of the data shared by the participants in the supply chain

IV.

Integration of the operations of customers, suppliers and other business partners

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