To beTTer undersTand where MicrosofT is headed, iT’s

important to look at the main problems it faces.

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 world’s largest software maker measured by revenues. It
is also one of the world’s most valuable company.

MICROSOFT; how it all started:

Paul Allen and Bill Gates, childhood friends with a passion in computer programming, were
seeking to make a successful business utilizing their shared skills.

“Dream of having a PC on every desktop”

In 1972 they founded their first company named Traf-OData.

They officially established Microsoft on April 4, 1975, with Gates as the CEO, the original name
of "Micro-Soft," the combination of the word’s microprocessor and software.

HISTORY:
• 1975: Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PC computer
language program to MITS Computer, Microsoft's first customer.
• 1981: Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system for its first
personal computer.
• 1983: Paul Allen resigns as executive vice-president but remains on the board; Jon Shirley is
made president of Microsoft (he later becomes CEO); Microsoft introduces the Microsoft Mouse
and Word for MS-DOS 1. 00..
• 1985: Microsoft and IBM forge a joint development agreement. They launch Windows 1.0 (first
window-based OS) and after that in 1986 Bill gates become youngest billionaire at the age of just
31.
• 1989: Microsoft co-develop SQL server 1.0.
• 1990: Jon Shirley retires as president and CEO; Michael R. Hallman is promoted in Shirley's
place; the company becomes the first PC software firm to surpass $1 billion of sales in a single
year.
• 1992: The company introduces Windows 3.1. Windows now has over 25 million licensed users.
• 1994: In this year Microsoft released Windows NT.
• 1995: Microsoft launch windows 95 and sell 1 million copies in 4 days.
• 1997: The Justice Department alleges that Microsoft violated a 1994 consent decree concerning
licensing the Windows operating system to computer manufacturers
• 1998: The U.S. Department of Justice files two antitrust cases against Microsoft, alleging the
company had violated the Sherman Act.
• 2000: First beta of .NET framework released.
• 2001: Microsoft Windows XP is released internationally. In 2002, Great plain software is
acquired by Microsoft.
• 2003: Microsoft launches Windows Server.
• 2004: Microsoft announces a five-country pilot program for Windows XP Starter Edition, a low-
cost introduction to Windows XP designed for first-time desktop PC users in developing
technology markets.
• 2005: MSN launches a new Search service, available in 25 markets and 10 languages. The new
MSN Search service delivers results of greater relevance, instant answers to specific questions,
and a collection of tools that give Internet users greater control in targeting and refining searches.
• 2007: Windows Vista was released to consumers along with a new version of its Office suite,
called Microsoft Office 2007
• 2008: Bill gates leaves Microsoft to pursue charity work.
• 2009: In this year Microsoft released windows 7. Beats all previous records of sales.
• 2010: For the first time, Apple comes close to Microsoft and becoming the most valuable
technology company in America.
• 2012: Microsoft launch windows 8 (for all people), .NET framework 4.5, Internet Explorer 10
etc.
• 2013: Windows 8.1 was released to consumers along with Office 2013.

PRODUCTS:
Computers:
 Surface All-in-ones + desktops
 Laptops + Ultrabook’s
 Accessories
 Tablets + convertibles
 PC games
Office:
 Office for Windows
 Office for Mac
 Office University
 All Office apps

Additional software:
 Visual Studio
 Visio
 Project
 Mapping
 PC games

Windows:
 Windows 8
 Windows 8 Pro

Windows Phone:
 Windows Phone for AT&T
 Windows Phone for Verizon
 Windows Phone for T-Mobil

Xbox:
 Xbox One
 Xbox 360
 Xbox LIVE

Accessories:
 Computer accessories
 Xbox 360 accessories
 Windows Phone accessories
 PC gaming
 Audio accessories
Problem 1
Mobile:
Microsoft's greatest, most glaring inadequacy is obviously, the way that it hasn't yet made sense
of how to pick up a decent equilibrium in the mobile market. Presently, Microsoft's mobile piece
of the overall industry adds up to simply 3.5 percent. That is a dreadful number, particularly
contrasted to Apple's 14.8 percent and Google/Android's 80.2 percent. Moreover, its Surface
tablet has just had the option to gather less than 3 percent of the tablet market. This makes
Windows the main major working framework that doesn't have a suitable portable segment.
Microsoft doesn’t have a worthwhile mobile stage, customers must go elsewhere, to Apple or
Google, and once they do, they’re more likely to stay there.

Solution:
Having a solid mobile arm is significant for keeping purchasers inside a brand's environment.
What must Microsoft do? Windows 8 is a strong stage, and the Nokia equipment itself is likewise
superb, so the issue isn't with the nature of its items; it's with getting individuals to take a risk on
them.
How does Microsoft do this? Cut costs on its portable line, no matter how you look at it. On the
off chance that Microsoft could offer deep discounts on cell phones and tablets on a standard
with Google and Amazon, they will pick up footing in the commercial center. They could likewise
use Office and Xbox to build the worth include for these gadgets; after all, a tablet or telephone
that offered free Office 365 or free Xbox game titles would be a genuine attraction for customers.

Problem 2
Ecosystem:
Microsoft ecosystem isn't confronting the challenge. Windows Store is around one-fifth the size
of the App Store and Google Play, it doesn't have a feasible opponent to iTunes (except if you
tally Xbox Music), Google's Chrome program outperformed Internet Explorer in complete piece
of the overall industry, Bing remains a far off second to Google Search, and Microsoft as of late
discharged a free online form of Office Microsoft Office Online in comeback of Google Drive.
Having an emphatic ecosystem is basic to holding clients and developing gadget deals, and
Microsoft has a long way to go here.

Solution:
Microsoft must get more applications in its store, however it's a chicken-and-egg sort of issue.
Developers would prefer not to fabricate applications that there isn't interest for, and buyers
don't need a telephone that doesn't accompany all their most loved applications. Microsoft must
figure out how to motivate force designers. It could do as such by paying application designers in
every respect, offering higher edges on deals and offering shoppers critical credit toward
application buys. Obviously, by slicing costs on its versatile line to create more deals, it will take
care of this issue more straightforwardly.

CONCLUSION:
Microsoft has been a strong technology leader and has strong capabilities and resources to make
anything possible. Microsoft has been lagging in the mobile markets. It has acquired Nokia in
hope of increasing its market share and make a turn around. Microsoft could expand its range of
cloud services and software’s as the demand of cloud-based services is expanding. With a huge
reserve of cash, Microsoft can start acquiring new startups that would bring new technology,
skills and competencies to the business. Smart phones and tablets market 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.

RECOMMENDATIONS:
 Microsoft should invest and innovate more in the mobile market segment purely because of the
growth potential this segment has and also it seems to be the future of personal computing.
 Reduction of Poor Investments can be the key towards gaining profit. If Microsoft spend more on
products making sale profits and reduce its investments on products making poor sales, then in
few years it can make a move to grow.
 Strategic alliances are unique organizational structures that enables cooperation between
companies. Microsoft must work on maintaining many partnerships and alliances to help further
its goals.
 Microsoft must improve its investment research and should be more investigating before
acquiring any company.
REFERENCES:
https://www.huffpost.com/entry/microsofts-four-biggest-problems_b_5641212

https://medium.com/@wtfmitchel/5-big-problems-microsoft-f6b2733eb2a4

https://www.slideshare.net/vijurockstar/presentation1-30200052?from_action=save

https://www.slideshare.net/MuhammadImaaduddin/microsoft-company-50492986?from_action=save

https://www.slideshare.net/sinhasameer13/a-case-based-presentation-on-microsoft-
company?from_action=save

https://www.slideshare.net/RishabhRaja/microsoft-26103256?from_action=save

https://www.slideshare.net/chinmayschauhan/strategic-analysis-for-microsoft-2014

https://www.zdnet.com/pictures/five-challenges-facing-microsoft-in-2015/4/