1.

Introduction:
A. Industry Review:

Microsoft (MSFT) Corporation designs, develops, manufactures, licenses, and supports software produced for various computers and related devices worldwide. Microsoft operates in three main divisions: Platforms / Services, Business, and Entertainment. The Platforms division includes the windows operating systems for personal computer, servers, and devices. The Business division includes the Microsoft Office platform and various business services. The Entertainment (and device) division includes the Xbox video game system and various computer peripherals.

B.

Company:

At Microsoft, we're motivated and inspired every day by how our customers use our software to find creative solutions to business problems, develop breakthrough ideas, and stay connected to what's most important to them. We run our business in much the same way, and believe our eight business divisions offer the greatest potential to serve our customers. They are:

Online Services Division: Microsofts search, portal, advertising and personal communications services, including online information offerings such as Bing and the MSN portals and channels. Server and Tools Business: Microsoft infrastructure software, developer tools and cloud platform, including products such as Windows Server, SQL Server, Visual Studio, System Center and the Windows Azure Platform. Microsoft Business Solutions: A portfolio of Microsoft Dynamics products and services, as well as Microsoft Health Solutions. Microsoft Office Division: Productivity products and services, including Office, Exchange, SharePoint, Lync, Project, Visio, and Microsofts speech technology investments. Interactive Entertainment Business: Key entertainment experiences that span gaming, music and video across multiple screens, including Xbox 360, Xbox LIVE, the controllerfree Kinect for Xbox 360, Zune Music and Video, and Mediaroom, as well as PC and mobile interactive entertainment. Windows Phone Division: Microsoft software and services for Windows Phones worldwide. Windows & Windows Live Division: All Windows businesses, including Windows, Windows Live and Internet Explorer. Skype: A division of Microsoft, transforming communications for computers, mobile devices and the connected living room.

We are committed long term to the mission of helping our customers realize their full potential. Just as we constantly update and improve our products, we want to continually evolve our
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company to be in the best position to accelerate new technologies as they emerge and to better serve our customers. Office: The Bangladesh office supports: Bhutan and Nepal Microsoft Bangladesh Limited RM Center, 3rd Floor 101 Gulshan Avenue Dhaka 1212 Bangladesh Phone: +880-2-8832973-75 Fax: + 880-2-8832976

C.
Novell:

Competitors:
Sun Microsystems:

Google: Activision Blizzard: Yahoo!:

Oracle: Symantec: Apple: IBM:

Hewlett-Packard:

2.

Marketing Strategy:

Technology Industry Research & Analysis: The technology industry broadly includes companies whose primary function is to create innovative products and processes. Information technology deals with the management and processing of information. Technology Trading Strategy: The technology industry tends to be sensitive to economic cycles. Look for undervalued technology investments during economic recessions when stock prices are low and sell technology investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase discretionary investments, because business significantly increase technology investments that they postponed during the recession. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.

A.

Segmentation:
1. Geographical segmentation:

1st Developed countries 2nd Developing countries 3rd Undeveloped countries

2. Demographical Segment: a) Age:

1st Teen 2nd Young 3rd Mid aged 4th Old

b) Gender:

1st Male 2nd Female

c) Occupation:

1st Working people 2nd Students 3rd Businessman

3.

Behavioral:

Attitude toward the product Loyalty Status

B.

Targeting:
Tergeting market

Market targeting of Microsoft

Geogrephic

Demographic

Developed countries

Developing countries

age

Gender

Undeveloped countries

Teen

Young

Male

Female

Mid aged

Old

Behavioral

Students

Occupation

Businessman

Attitude toward the product

Loyalty Status

Working people

C.

Positioning:

Apple may be spending millions to denigrate Microsoft in its "I'm a Mac" ads, but a just-released Harris Interactive survey shows it may be wasting its money: Consumers have a far higher opinion of Microsoft than they do of Apple. And because of that, they're more willing to spend for Microsoft products. The Harris Interactive survey rates the 60 most visible U.S. companies according to what consumers think of them. It ranked them based on their reputation in six different categories: Emotional Appeal, Products & Services, Social Responsibility, Vision & Leadership, Workplace Environment, and Financial Performance. It then compiled an overall reputation index for each company. Microsoft was in the top five companies in three categories: Financial Performance, Social Responsibility, and Vision & Leadership. It ranked number three in Financial Performance, number four in Social Responsibility, and number three in Vision & Leadership. Apple was in the top five only in Vision & Leadership, and there it trailed Microsoft, coming in at number five, to Microsoft's number three. Why is this important? Harris Interactive concludes that "a strong statistical correlation exists between a companys overall reputation and the likelihood that consumers will purchase, recommend or invest in a company or its products and services."

3.

Marketing Mix:
A. Product:

Microsoft has several products among them most popular are,

Digital media authoring

AutoCollage 2008 Microsoft Expression Studio Microsoft Expression Web Microsoft Expression Blend Microsoft Expression Encoder

Microsoft Expression Media

Windows Live Mail Windows Live Mesh Windows Live Messenger

Windows Live Movie Maker Windows Media Encoder

Internet
Bing Bar Internet Explorer Microsoft Silverlight Windows Live Essentials Windows Live Family Safety

Windows Live Writer

Office
Microsoft Access Microsoft Entourage Microsoft Excel Microsoft FrontPage Microsoft InfoPath

Microsoft Paint Microsoft Notepad Microsoft Lync Microsoft MapPoint Microsoft Office Picture Manager Microsoft Office shared tools Microsoft OneNote Microsoft Outlook Microsoft PowerPoint Microsoft Project Microsoft Publisher Microsoft SharePoint Workspace Microsoft Visio Microsoft Word Microsoft Works Office Assistant Outlook Web Access

Operating systems
MS-DOS Microsoft Windows Windows NT Windows CE Windows Embedded Windows Mobile Windows Phone Windows Preinstallation Environment Windows Server Windows 95 Windows 98 Windows 2000 Windows XP Windows Vista Windows 7 Windows 8 Forefront Protection Server Management Console Forefront Threat Management Gateway

Microsoft Flight Microsoft Flight Simulator series Midtown Madness series Rise of Nations Train Simulator

Misc.
Microsoft Mathematics Microsoft Reader Microsoft Virtual PC Ribbon Hero 2 Windows Live Photo Gallery Windows Media Player WorldWide Telescope Microsoft Streets & Trips

Discontinued
Creative Writer Encarta Internet Explorer for Mac Microsoft Agent Microsoft Anti-Virus Microsoft Binder Microsoft Bob Microsoft Comic Chat Microsoft Digital Image Microsoft Liquid Motion Microsoft Money Microsoft Picture It! Microsoft Plus! Microsoft PowerToys Microsoft Schedule Plus Microsoft Student Microsoft Vizact 2000 Windows Live OneCare Microsoft Works

Microsoft office suites

Windows
Microsoft Office 3.0 Microsoft Office 95 Microsoft Office 97 Microsoft Office 2000 Microsoft Office XP Microsoft Office 2003 Microsoft Office 2007 Microsoft Office 2010 Microsoft Office 2013

For Mac
Microsoft Office 98 Macintosh Edition Microsoft Office 2001 Microsoft Office v. X Office 2004 for Mac Microsoft Office 2008 for Mac Microsoft Office for Mac 2011

Forefront Unified Access Gateway

Video games
Age of Empires series Halo series

B.

Price:

Microsoft has long enjoyed Olympian profit margins, using its monopoly power to maintain prices on its software even in tough times. But now, amid a terrible downturn and rising competition, CEO Steven A. Ballmer is shifting to a scrappier approach. He is cutting prices on a variety of fronts, from flagship Windows and Office products to newfangled Internet services. The idea is to accept lower margins in some businesses but boost overall earnings by going after a grab bag of growth opportunities. These range from expanding its share of big companies' software purchases to lowering the price of Office software so consumers in emerging markets pay for it rather than pirate it. With the outlook so cloudy, "we're focusing on gaining share in those areas that are most critical," says Stephen A. Elop, who heads the business division. On July 13, Elop demonstrated the new Office 2010 in New Orleans. While Microsoft expects most customers to pay for the program the way they always have, less powerful, ad-supported versions will be available free on the Web. The company is also charging a monthly fee for online applications, such as the e-mail program Exchange, which is about a third as profitable as selling the software on CDs. And on Oct. 22, Microsoft's new Windows 7 PC operating system will go on sale in stores for $40 less than the $240 it charged when it launched its Vista program in 2007the biggest price cut on a new version of Windows in years. All of these moves amount to a risky experiment in price elasticity. By lowering prices, the company hopes to increase sales of existing products while making fast headway with new ones. If the company can gain enough market share to cover its massive costs in Web services and Internet searchnotably, its vast data centersevery extra dollar will be pure profit. "I'm not saying it will be easy," says Ballmer. "But we have great opportunities to grow total profit dollars." ONLY $29 IN CHINA Microsoft is cutting the price of Office and offering the free versions of Word, Excel, and other programs to head off competition from Google and other rivals that offer similar software at little or no cost. Microsoft has so many promotions for Office that its effective price is $100, down from $150, and even lower in such countries as Brazil and India. But the experience is sparking optimism at Microsoft about the new strategy. The company says unit sales of Office surged 415% in the second half of last year. The most aggressive price cut has come in China, where Microsoft says 95% of Office installations have been pirated. Since it began testing a $29 offer in China last September, sales have soared more than 800%. The low price was "like taking firewood from under the cauldron" of piracy, says Liu Tianxiang, a vicepresident with Beijing Federal Software, a Chinese software distributor. He figures Microsoft has sold 80,000 copies of Office in China since the trial started. Now Microsoft intends to make the low price permanent. Not surprisingly, Microsoft continues to hunt for ways to offset price cuts. It hopes to boost the bottom line by encouraging Windows 7 software users to upgrade more often. Since the program CD will come loaded with multiple versions, users who buy the cheaper Starter edition can easily pay later to get premium features. Of course, that risks annoying userswhen rivals such as Google are trying to lure customers with cheaper alternatives. But in the current economy, there's no risk-free way to stay ahead. This represents that theyre price was higher and now they are reducing their price, that means they are taking market Screaming there pricing strategy.

C.

Place:
Microsoft is a software selling company. They have some stores but they sell their product mostly on the web.

D.

Promotion:

The innovative approach Microsoft brings to web advertising, including developing effective analytical tools, and helping companies like Viacom monetize their web properties, is the focus of the cover story for the May 19, 2008, issue of BusinessWeek.
1. The Edge in Customer Service

In describing the current web advertising market, the BusinessWeek article sets out the decided advantage Microsoft Advertising boasts in customer service. The BusinessWeek cover story details how advanced analytical tools provided by Microsoft Advertising allow for smarter and more cost-effective media buying and selling. Clients now have the ability to follow user behavior at a far greater depth. These analytic tools, the article suggests, hint more at where web advertising is going.

2.

Getting the Most out of Content

The successful monetization of media giant Viacoms web properties by Microsoft Advertising is recounted in the BusinessWeek cover story. With an understanding of user experience and software know-how, Microsoft Advertising has been able to develop assets that had previously gone untapped .

4.

Financial Projection:
A. Sales forecast:

(In millions, except per share data) Year Ended June 30, Revenue Operating income Net income Diluted earnings per share Cash dividends declared per share Cash and cash equivalents and shortterm investments Total assets Long-term obligations Stockholders equity $ $ $ $ 2011 69,943 27,161 23,150 2.69 $ $ $ $ 2010 62,484 24,098 18,760 2.10 $ $ $ $ 2009 58,437 20,363 14,569 1.62 $ $ $ $ 2008 60,420 22,271 (a) 17,681 (a) 1.87 $ $ $ $ 2007 51,122 18,438 14,065 1.42

0.64

0.52

0.52

0.44

0.40

52,772

36,788

31,447

23,662

23,411

$ $ $

108,704 22,847 57,083

$ $ $

86,113 13,791 46,175

$ $ $

77,888 11,296 39,558

$ $ $

72,793 6,621 36,286

$ $ $

63,171 8,320 31,097

(a) Includes a charge of $1.4 billion (899 million) related to the fine imposed by the European Commission in February 2008.

B.

Breakeven:

Break even analysis is an economical position of an organization that represents the cost and revenue as the same. That means the point where the total cost and total revenue meets is called the the breakeven point.

35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 Sell 1 Sell 5001 Sell 10001 Sell 15001 Sell 20001 Sell 25001 Sell 30001 Sell 35001 Sell 40001 Sell 45001 Sell 50001 Sell 55001 Sell 60001 Sell 65001 Sell 70001 Sell 75001 Sell 80001 Sell 85001 Sell 90001 Sell 95001 Sell 100001 Sell 105001 Fixed Cost

Total Cost
Total Revinue

5.

Product which unprofitable for the company:

A. Internet Explorer

Windows Internet Explorer (formerly Microsoft Internet Explorer, commonly abbreviated IE or MSIE) is a series of graphical web browsers developed by Microsoft and
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included as part of the Microsoft Windows line of operating systems, starting in 1995. It was first released as part of the add-on package Plus! for Windows 95 that year. Later versions were available as free downloads, or in service packs, and included in the OEM service releases of Windows 95 and later versions of Windows. Internet Explorer is one of the most widely used web browsers, attaining a peak of about 95% usage share during 2002 and 2003. Its usage share has since declined with the launch of Safari (2003), Firefox (2004), and Google Chrome (2008), each of which now have significant market share. Estimates for Internet Explorer's overall market share range from 16.7% to 32.31%, as of May 2012 (browser market share is notoriously difficult to calculate). Microsoft spent over US$100 million per year on Internet Explorer in the late 1990s, with over 1000 people working on it by 1999.

B.

Reasons for being unprofitable one:

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1.

Microsoft stopped trying:

By the time Microsoft released Internet Explorer 6 in 2001, complete with lots of new features for web developers, since there was no competition and they had a 95% market share, Microsoft just stopped tryingseriously, they did nothing for 5 years even after Firefox was released and geeks started migrating left and right.
2. Microsoft-Specific Features

The whole problem with Microsofts innovation is that much of it was done in ways that didnt follow the web standardsthis wasnt as big of a problem when Internet Explorer was the only game in town, but once Firefox and Web kit came around and started following the standards correctly, suddenly it became a huge problem for web developers.
3. Security Holes and Crashing:

Since Microsoft decided they didnt need to try anymore, and they didnt keep up with the competition from Firefox and other browsers, bugs and security holes just cropped up left and rightreally terrible ones, too. For instance, this code is all that is required to crash IE6: <script>for(x in document.write){document.write(x);}</script> In fact, the screenshot at the beginning of this section was a live example of testing out this particular bug.

4.

IE7 and IE 8 were too little, too Late,

It took 5 years after IE6 for Microsoft to finally get around to releasing IE7, whi added tabs and made the browser slightly more tolerable, but for web designers it was still a nightmare to deal with, and only complicated the issue since now you had to make pages render correctly in two lousy browsers instead of just one. It took another 2.5 years for Microsoft to finally release Internet Explorer 8, which greatly improved CSS support for web developers, and added new features like Private browsing, tab isolation to prevent one bad page from taking down the whole browser, and phishing protection. By this point, most geeks had already moved on to Firefox, and then some of us to Google Chrome.
5. Target of bad guys:

You are safer by avoiding software that bad guys target. Mac users benefited from this for years. Windows users can lower their attack surface (be less vulnerable) by avoiding popular software. Internet Explorer is popular, so bad guys exploit known problems with the browser.
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6.

Schedule bug fixing:

Microsoft fixes bugs in Internet Explorer on a fixed schedule. But, bugs are not discovered on a schedule which means IE users remain vulnerable to know bugs until the next scheduled bug fix roll-out. Neither Firefox nor Chrome, my preferred browsers, are locked into a schedule.

7.

Unavailability in popular operating system:

The most popular operating systems are, I believe, Windows XP, Windows 7 and OS X. Of these, the latest version of Internet Explorer, version 9, runs on only one.
8. No portable version:

There are portable versions of both Firefox and Chrome. There is no portable version of Internet Explorer.
9. 32 bit 64 bit confusion:

Anyone running a 64 bit version of Windows 7 may have to deal with the confusion over 32 and 64 bit versions of Internet Explorer. There is no such confusion with Chrome and Firefox.
10. No emphasize on bug fixing:

Both Mozilla and Google pay anyone who finds a bug in their browser and brings it their attention. Microsoft does not. As a result Mozilla and Google are more likely to be aware of their bugs. You can't fix a problem you don't know about.

C.

How they can make internet explorer better:

1. Start trying:

Microsoft should start trying to make Internet explorer better as now they have a lot of competitors there in the market.
2. Overcome the Myopia:

They concentered on their own thing. They thought only what will they provide but they didnt think of the customers want. They have to overcome this myopia to be a good product in the market.

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3.

Strong security:

The security is not so strong. As it was a market leader once a lot of bad guys were tried to break the security shield, some were successful too. Now if Internet explorer wants to come back they have to make their security stronger.
4. New product:

Internet Explorer is an old product and now people have a perception towards it that how good it may be but we wont use it. So internet explorer should come in a new packet in a new form. Transforming a bad reputation in good is a difficult job to do.
5. Fix problems on demand:

Internet explorer fixs the bug as Schedule but bugs are not created as Schedule so the maximum time it remains a buggy browser.
6. Make it run in other operating system:

Microsoft should take steps to make it run on other operating systems so that other operating system users can use it.
7. Make a suitable version for 32 bit and 64 bit:

There is a confusion about the 32 bit and 64 bit. They should solve this and make it easier for users to install it in their computer.

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6.

Appendix:

www.wikiwealth.com www.microsoft.com www.wikipedia.com Breakeven for Microsoft is not available for this reason I used another shops Breakeven Water Games

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