Last Updated 28 Jan 2021

Microsoft: Business Details, Marketing Strategies And Analysis

Category Microsoft
Essay type Research
Words 788 (3 pages)
Views 394
Table of contents

Company information:

Company name     Microsoft
Sector                      Application software

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IPO date                  Thursday, 13.03.1986
Location                  Redmond, Washington, US

Fundamentals and financials:

Market cup                         $577.2 billion
Revenue                              $89.95 billion
Employees                          124000
Revenue/employee           $725400
Net income                         $21.2 billion
Shares outstanding           7.702 billion
Annual earnings/share     $2.74
P/E ratio                               27.35
Company management: Satya Nadella (Director and Chief Executive Officer)


Microsoft is one of the most well-known tech companies in the world. It’s a US-based corporation, currently headquartered in Richmond, WA. Even though the company is best known for developing Windows operating systems, there’s so much more in its product portfolio.

It was established in 1975 by Bill Gates and Paul Allen, childhood friends who shared a passion for programming. Fast forward to now, and this core concept is still upheld in full force but on a much larger scale. They develop, market and sell invaluable software solutions for both home and corporate users.

Microsoft's continuous development of cloud technologies, consumer electronics, services, and software has made it the leading force in computing, rivaled only by few.

Supplementary materials below. Feel free to get acquainted with them before moving on to other specific details.

Financial Data

As should come as no surprise, the company showcases strong financial performance across the board.
In the most recent fiscal year (2017 FY), Microsoft generated almost $89.950 billion in revenues, $21.204 billion in operating income (a 26% increase over last year’s performance) and a gross margin of $55.689 billion.
Operating income – $22.326 billion.

A quick glance at the balance sheets reveals that current assets are estimated at $159.85 billion while total assets are at $241.086 billion.
Diluted earnings per share – $2.71. Cash dividends declared per share – $1.56. Stockholders equity – $72.394 billion.

Earth Day: Protecting the Black Rhino with Microsoft Surface - 90-second version (source - YouTube)

There’s more to discover here, find out about Microsoft’s financial data with the list of related materials found below.


Since Microsoft products have found their way into many market segments, it’s vital to maintain a healthy market share by implementing creative strategies, which Microsoft manages to pull off.
Product differentiation is a potent tool the company has in its possession, and it’s used to its fullest extent.

It’s particularly important to note that the company manages to sell their products at a premium price. They are reliable, convenient and easy to use.
Find out about marketing strategies below.

Structure and Operations

The company employs 124,293 people on a full-time basis, and 73,172 of that number are US-based employees.

There are four core engineering groups:

  1. Cloud ; Enterprise Engineering
  2. Office Product
  3. Windows ; Devices
  4. Technology ; Research

On top of that, there are also nine business groups.

Countless subsidiaries were acquired over the years. Some of the major ones include LinkedIn, Skype, Azure, Bing, Rare and Mojang. The company still actively focuses on acquisitions, which is precisely how it expands its talent pool and abilities.
More below.


Even though it’s hard to argue that the company is in a strong position, there are still quite a few risk factors to consider; they may weaken the enterprise in the long run and give their competition the edge.

Some of the products do not get the required exposure, while a diverse portfolio of products and services has to deal with fierce direct competition.
At the same time, company's direction has substantial breakthroughs planned in its course: a strong focus on cloud and quantum computing, elaborate AI developments and other forward-thinking solutions.

Will Microsoft be able to stay ahead of the curve? Analyze what was done in order to remain competitive throughout the years with this rundown of research materials.

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