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Essay / Research Paper Abstract
This 6 page paper looks at different aspects of Microsoft's diversification strategy. The first part of the paper looks at the type of diversification undertaken and possible actions or reactions of competitors in those markets. The second part of the paper considers the important of the fast moving lifecycle for the products and the value of the proprietary advantage, the last part looks more closely at the way diversification is occurring and the general strategy. The bibliography cites 4 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEmicrodiverse.rtf
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Unformatted sample text from the term paper:
developing sales to generate revenues in a range of markets where it is able to benefit from the Microsoft name and trust that is created, expanding the markets for entertainment
and business software as well as different devices. This firms market power and ability to leveredge proprietary advantage aid with this strategy. This is a strategy that is reducing reliance
on singular markets, and as such reducing risk, in fast moving product lifecycle markets, and is positioning the firm well for the future. 2. Competitive Rivalry
Microsoft may be best known the its dominance in the operating systems market, as well as products such as Office, however, the business that started out
as supplying software has had to develop and evolve over time. Microsoft is not in a large number of markets due to the way it which it has adopted a
strategy of diversification. The business areas that Microsoft take part in may be indicate the types of competition that may be faced. In all cases the diversification can be seen
as related, and essential as the Windows business segment is suffering during the current economic conditions. Online Services Business and Entertainment and Devices divisions are examples of this diversification.
The level of competitive rivalry will depend on the level of intensity in the segments, the power of the firms and the condition with
the markets as well as the condition of the firms themselves. In many of the sectors that the firm has entered there
is already an established business with a number of players, and Microsoft is not going to be able to gain dominance easily, if at all. In addition to this the
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