Group 8

Members: Le Huynh Nhi

Quach Hang Ngan
Tran Phuong Thao

In Class Exercise 4
______________________________________________________________________________
___________________________Question 1:
Microsofts marketing strategy has been interesting in the buildup to the
surface tablet announcement. Last week a future Microsoft strategy
document was leaked which lead to sizeable discussion and hype building
up. Then today we have the announcement. Perfect marketing and PR. I want
one, but where to I go to buy one? Sorry. It will be released some time in the
future. Well my credit card is going back into my wallet and Ill have
forgotten all about the Microsoft surface tablet by the time its gets its official
release.
Apple release the products for purchase the SAME DAY as the
announcement. Get them while theyre hot, and it works. Thats why Apple is
sitting on $100 billion in cash right now. What they do works. Microsoft need
to just copy it.
-

Apple held its Worldwide Developers Conference on June 11, 2012

because June is traditionally the month when new software and
technologies are announced.

Surface is the device which Microsoft used to compete against IPad of

Apple. Microsoft announced Surface on June 18, 2012, exactly one
week after the Worldwide Developers Conference- the biggest
conference held annually in California by Apple Inc, to show their

product competition and gain attention of the media, developers and

users.
Question 2:
-

LA, known more for its innovations in reality television than in

computing devices. The location is worth pondering. Microsoft held the
press conference at a movie studio in Los Angeles because Microsoft
has some people in Southern California. Its possible the company set
up a Tinsel town skunk works to create its rumored new tablet, and
that it simply wants to launch its new product next to the team that
created it. On the other hand, maybe Microsoft was drawn to Los
Angeles for the most obvious reason: It needed to be near the
entertainment industry. The strongest indication Microsoft could cozy
up to Hollywood at its event, whether through a major new studio deal
or with some simple celebrity endorsements, is how logical such a
move would be. The living room is the last big emerging market not yet
dominated by Apple, which owns the tablet space and which is
trouncing Microsoft in mobile phones. Microsoft is ahead in the living
room thanks to Xbox, but it needs to broaden its appeal beyond
hardcore video gamers if its going to keep that lead on.

Question 3:
Device
Hardware
manufactur
e
OS
Market
Share
Camera
Keyboard

Apple
iPad

Mac

Apple

Apple

iOS

iOS

15.3%
Yes
Intern
al

iPhon
e
Apple

Google
Android Kindle
Phones
Fire
Google
Others
& Others

Google
Pixel C
Google

Windows
Phone
Others

Microsoft
Surface

iOS

Android

Android

Android

25.9%

7.1%

79%

4%

Windows 8
RT
<1%

Windows
10
25%

Yes
Intern
al

Yes
Extern
al

Yes
Internal

Yes
Internal

Yes
Both

Yes
Internal

Yes
External

Microsoft &
Others

Revenue

$233.715 billion

$74.5 billion

$93.58 billion

Cash
(2015)
Market Cap
22/08/2016
Share Price
20/08/2015
Share Price
20/08/2016
Annual
Price
Growth

$21.120 billion

$16.549 billion

$5.595 billion

$589.28 billion

$532.93 billion

$449 billion

$112.65

$656.13

$45.66

$109.36

$775.42

$57.62

-3%

18%

26%

Question 4:
According to the latest data, Apples Worldwide iPhone and iPad have
declined from 30% to 15.3% and from 68% to 25.9%. The market share of
Google Android Phone has increased significantly from 49% to 79%. On the
other hand, Kindle Fires market share has decreased from 13% to 4%.
Windows Phone market share sinks below 1%. even Worldwide smartphone
sales increased by nearly 4 percent in the recent quarter. Microsoft Surface
Book increased its market share by 9% in Q1 and to second place and 25%
over the same quarter in 2015.
- Apple has not made continued inroads on Android phones because now
Android market share is 79% and iPhone is 15.3%.
- Surface nearly has made inroad on the iPad since iPad market share has
decreased and Surface market share has increased even at the moment, the
market share of iPad is slightly higher than Surface. (25.9% vs 25%).
- As for Kindle, the price of this tablet is affordable ($50) but the market
share of this is not high or even low. One possible reason can be Apple and
Samsung dominate the tablet market.

- Several years ago, Microsofts measly 2% of the phone market but now
Windows Phone market share sinks below 1%. And it claims that Windows
Phone is dead.
- Finally, Microsoft is no longer in smartphones war. Microsoft smartphones
may not be entirely gone because they continue to develop Windows 10
Mobile to support the Lumia but we can expect much less devices to come
out of the company in the following years. They also cut workforce by 18000.
According to the published email from the CEO Satya Nadella, it stated that
With this in mind, we will begin to reduce the size of our overall workforce
by up to 18,000 jobs in the next year. Of that total, our work toward
synergies and strategic alignment on Nokia Devices and Services is
expected to account for about 12,500 jobs, comprising both professional and
factory workers. We are moving now to start reducing the first 13,000
positions, and the vast majority of employees whose jobs will be eliminated
will be notified over the next six months. Its important to note that while we
are eliminating roles in some areas, we are adding roles in certain other
strategic areas. My promise to you is that we will go through this process in
the most thoughtful and transparent way possible.
Question 5:
Unlike Apple and Google, Microsoft controls Windows Server, a server
operating system, which gives Microsoft some advantages:
+ Microsoft does not spend time negotiating to buy another OS (operation
system) -> save money
+ Microsoft can create network effects for their product line. In other
words, software developed on the Windows platform is not compatible with
other systems. Since Microsoft provided little documentation for assuring
compatible links between different software packages, customers naturally
chose Microsoft suites as the best way to assure their software would work
together -> set a dominance in the market

For example, Microsoft promoted a proprietary approach called OLE against

alternatives like Open Doc which were built around open software standards.
While Open Doc was considered an easier to use and more robust approach,
fears that future Windows upgrades might undermine any approach other
than OLE forced almost all software makers to deal with Microsoft's own
proprietary system
http://www.netaction.org/msoft/world/part3.html
- There are rumors, in fact, that Apple runs Windows Server in its iCloud data
center. If true, does it matter?
+ This is true. Actually, Apple cooperated with Amazon services and
Microsofts Azure platform to run iCloud data center
+ This way helps ensure that Microsofts quality of products and services are
widely recognized
+ This way helps Apple gain more knowledge through working experience
with experts from Microsoft and Amazon
+ This way helps us know that Apple respects consumers and it aims to
provide them with the best service experience regardless of their
competitors
https://apple.slashdot.org/story/11/09/04/0051209/apples-icloud-runs-onmicrosoft-azure
Question 6
In October 2011, Microsoft purchased Skype and Skype does contribute to
Surface
In 2013, Microsoft introduced Surface 2 and Surface pro 2 with Skype along
( https://blogs.skype.com/2013/09/23/the-best-of-skype-is-now-an-integralpart-of-surface-2-surface-pro-2-2/ )

With unlimited calling, your Surface is transformed into a communications

hub, where you can make calls to friends and family on landlines in 60
countries and mobile phones in 8 countries, free of charge for a year
Whether you want to IM, voice, video call, Skype on Surface is perfect for
keeping up with everyday conversations. And with Snap, a feature in
Windows 8.1, that allows you to run more than one app side-by-side, you can
use Skype alongside whatever else you have going on whether it be
watching a movie, checking Twitter or browsing the web. With Skype on
Surface, you can do more wonderful things at once
With Unlimited Worldwide Calling and WiFi access from Skype, the Surface 2
and Surface Pro 2 just got even better. With an amazing set of devices to
choose from, together with the Best of Skype, we know youll stay closer
and more connected than ever before.
Question 7:
It can use both of Xbox and Kinect to connect with Surface. And we can
download applications from Surface to use with the two. Or we can use
Surface to connect two users from far distance to play games by Xbox and
Kinect.
Question 8:

The choice of names says important things about how Microsoft values

the two products.

Since Surface is quite a better name, it shows that Microsoft definitely
emphasizes the importance of product position in the company's
portfolio, vice versus.

Question 9:

I choose APPL - BECAUSE - Apple seems to have more customer equity,

which will make the stock profits in the long-run. - Currently, Apple

products are unique and Apple brand name has become the favorite of
many people in the earth.