Microsoft has been significantly investing in its key business, for instance in order to make computing more personal, Microsoft is engaged in devising and selling first-party devices to help drive innovation, build new device categories, and spur demand in the Windows ecosystem. The R&D expenditure in FY20 and FY19 increased by 2.4 billion and $2.2 billion respectively which represented 14% of the company’s revenues in both the years. R&D focus help to maintain competitive advantage: Microsoft strongly focuses on Research and Development (R&D) through internal development which also helps it to achieve product differentiation and closer technical control. With this, they have a great and also loyal customer base and hence a platform for advertising.Ģ.
Microsoft’s software is popular not only in the western countries but across the globe. The wide range of products include cloud-based computing services that include Bing, Microsoft Azure, Microsoft Dynamics CRM Online, Microsoft Office 365, OneDrive, Skype, Xbox Live, and Yammer. The vast and varied portfolio is what essentially makes this company have such a huge customer base. Strong market share, diverse products and global reach: Microsoft’s Windows desktop operating system is a household name and holds majority of market share. information technology industry, besides Google, Apple, Amazon, and Facebook.ġ. It also belongs to one of the Big Five companies in the U.S. Microsoft's USP or Unique Selling Proposition lies in being the world's biggest personal-computer software company, based on sales and the world's largest companies based on its revenue. The company believes is utilizing technology to address the global challenges and not create new ones. Microsoft’s mission statement reads “to empower every person and every organization on the planet to achieve more.” Microsoft believes that is enduring mission will drive the company and everything it does to emphasize on its passion to empower both people and institutions they build.
As of June 30, 2020, Microsoft employs nearly 163,000 people on a full-time basis of which 96,000 are based in U.S. The company generates substantial revenue by offering a wide range of cloud-based and other services to individuals and organizations, licensing and supporting an array of software products, designing, manufacturing, and selling devices, and delivering relevant online advertising to a global audience.
Microsoft designs and sells hardware such as PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and also other accessories. Also, in the segment of video games it has made its mark. It has a high market share for software development tools. It also makes server applications for distributed computing environments, productivity applications, business solution applications desktop and server management tools. Microsoft’s portfolio of products and services is varied and huge which comprises of operating systems for computing devices, servers, phones, and other intelligent devices. Microsoft develops, manufactures, licenses, supports and sells computer software, personal computers and consumer electronics. Microsoft Corporation, also known as MS, is an American multinational technology company headquartered in Redmond, Washington.