Business strategies of Microsoft are influenced with internal and external factors and technology driven. It’s capability of managing the sources is shown in its managerial structure and supervision. It’s a challenge to be on track in this fast changing world. Microsoft Corporation, a global software leader is facing many challenges from industry forces. But in above analysis we find that they are so far capable to remain and keep ahead against opposition, by get in early and big strive to become the industry leader. As a leader Microsoft Corporation successfully create a lock-in by setting the industry standards. In PESTEL analysis we understand that Technology is the most influencing Macro environmental factor. Microsoft strategy is explained through Bowman’s clock as a hybrid strategy. Both stands of Differentiation and intended strategy for low price are detailed. Here Value chain is also used as a useful tool to find out the strategic capabilities Microsoft Corporation. Core competence is well associated to Microsoft strategy. Strategic abilities are found sustainable. It is proved that Microsoft had the capability to resource the strategies by abilities of people, technology, funds and information.
However, it is recommended that company must transform its competence and expertise into new line of business where it has no or less presence. Microsoft has no presence in internet space and thus company can develop new technologies in this area. Increasing growth for mobile applications and operating systems and various digital devices are the areas where company can built strategic alliances or develop their products to be competitive. Internet space can be targeted by the company as a new line of business where it has no significance. Increasing education level across the globe and business environment has created a huge demand for personal computers. Piracy has been considered as the major factor that is affecting company’s sales. Entering into Chinese market, company can focus on developing software and application at low cost as in China employee cost is low. This could lead Microsoft to offer their products and software at more affordable price to its huge customer base across the globe.