Microsoft's Diversification Strategy Essay Example | Topics and Well Written Essays - 2500 words - 1

Microsoft's Diversification Strategy - Essay Example It has looked to provide the best quality service to the customers at cheaper rates and also the service been provided is in the best condition. In 1980, IBM selected the company to build the operating system for its computers and in 1986 the company went public and in the same year, the company became the first billionaire company in the country. Â  In this report, the various strategies used by Microsoft to tackle the growing competition in the global market can be seen using various marketing theories. The way in which the company has looked to diversify from its core business to get a competitive advantage and also to explore new markets can also be seen by studying various articles and books to understand the importance of diversification for the current competitive global market. Â  As per this, the diversification strategy is the type of strategy used by the companies to have a growth in their business process. The companies look to launch new products while entering the new markets to capture the maximum market share and also for increasing their sales volume and also the profit margin by huge percentage compared to earlier times. Â  In 2001, the company entered in the market of video games and launched its video game Xbox console in the market. But by then the company found it lacking way behind as other companies like Nintendo, Sony has already entered this market and also had a good market share in the global competitive market zone (OaShaughnessy, 1995, pp. 56-63). The company is now present in mostly all the countries across the globe and has looked to provide the best facility service to the customers by developing most reliable and also high-quality software and operating system for the computers both for personal and official use. Microsoft had strong competition from the latest innovative video games that were launched by other companies and mainly by Sony and Nintendo.