Mcrosoft strategy

Managing Weaknesses
While investing in growth, Microsoft must also acknowledge their weaknesses and work to manage and minimize them. They have successfully begun to address weaknesses in many consumer preference areas, such as the over-saturation of the consumer software area by diverting into enterprise software. Significant weaknesses related to perceptions and security must also be managed.
Migrate perceptions and re-brand. While Microsoft has successfully begun to alter its reputation among consumers, many IT purists and CIOs remain leery of Microsoft products because of their image as “the evil empire.” To manage this weakness and repair their tarnished image, Microsoft should re-brand as a company that serves to make business function easier and seamlessly, through enterprise software solutions.
Address security concerns. As technology becomes more seamless, and as devices outside of the PC are used more extensively, consumers are becoming more concerned about security, especially in the enterprise software area. Microsoft is poised to shape consumer preferences in this area, but to do so, will need to spend considerable revenues in researching and responding to security concerns.
Investing in Growth
Because enterprise software is a “star” for Microsoft, and ranks in the “build” category, they should use their cash reserves and revenue generated from desktop software (“cash cow”) to invest in growth, while divesting of their “dogs” (such as Xbox), so that more cash can be devoted to enterprise software. Microsoft is in an enviable position to spend the money necessary to compete effectively in the industry. By innovating, creating demand, investing in competitors and going global, Microsoft will invest in growth.
Innovate. Microsoft should continue their tradition of innovation through applying this tradition to enterprise software, especially through .NET. Suggestions include:
• Create an educational version of their enterprise software