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Manufactures And Trade Computer Software

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Discuss about the Manufactures and Trade Computer Software.



Microsoft Corporation is an American multinational technology company that was established in 1975. The company was founded by Bill Gates and Paul Allen. Along with this, headquarter of Microsoft is located in Redmond, Washington. The company manufactures and trade computer software, personal computers, electronics products, etc. to its customers. Microsoft develops,   and licenses lots of software products for computer devices (Geisst, 2014). At present, Microsoft is the largest provider of computer software as well as services all over the world.

It is true that Microsoft is well recognized in the world. There are numerous current and future key that influence the industry both locally as well as globally. For example, the major current issue is that the company is still unable to make its proper position in the mobile market. The market share of Microsoft is approximately 3.5% in the mobile market. The mobile market share of Microsoft Corporation is lower as compare to its competitors including Apple Inc. Google, etc. The mobile market share of Apple Inc. and Google are 14.8% and 80.2% respectively (Slayton, 2013). Moreover, Microsoft has only 3% market share in the tablet market. At present, around 99% smartphones run on Android or iOS. This thing shows that the windows OS is the only OS that does not have its charisma in the marketplace. This fact may influence the future growth of the company. The below diagram is useful to show a clear picture of the mobile market share of Microsoft and its competitors:

On the other hand, the second key issue is related to the ecosystem of the Microsoft Corporation.  The ecosystem of the company is incompetent to offer competitive advantages to the organization. Moreover, the Windows Store of Microsoft is very small as compare to Google play and App store. It does not launch new services like to its competitors. Recently, it just launched a free online version of office that is named as MS office online. This issue may influence the future growth of the organization. It is because of Microsoft is a technology based company; but it is slow in advanced technologies.  Due to its weak ecosystem, the company is unable to attract new customers and retain its existing customers for the growth of the organization (Frommer, 2012). Apart from this, it may reduce the productivity and profitability of the company in upcoming years. This thing is dangerous for the market reputation and image of Microsoft Corporation. So, Microsoft must focus on healthy ecosystem to survive in today’s more competitive business era. 


In addition to this, the other key issue is that the company is not in the touch of its customers. Microsoft did not made efforts to be competitive in the marketplace. There are lots of examples that can show the reluctance of Microsoft. For case, Microsoft took approximately three years to launch its smartphone after the iPhone (Apple Inc.). It waited roughly two years to release its first tablet after the Apple Inc. iPad. These things portray that the competitors of Microsoft are very far reaching. They quickly launch advanced technologies’ products and services to attract and retain their customers. The promptness of its competitors not only increased their market share; but increased the market image as well.  To reduce the impact of this issue, Microsoft should be aware and be competitive in the marketplace (Cocotas, 2012). The below graph is helpful to show the position of Microsoft in the marketplace:

On the other hand, Microsoft has been provided the license of Windows operating system (OS) to lots of third-party manufacturers including HP, Lenovo, Dell, Samsung, and so on. Now, all these parties are offering cheap products to customers. This thing reduced the productivity and profitability of Microsoft. Due to its ridiculous mistake, Microsoft has lost control in the marketplace; and still facing the situation of high competition in the markets. This mistake may influence the future growth of the company. Consequently, Microsoft must suspend its surface line and develop new products to be more competitive in the marketplace (Harrison, 2011). In this way, the above discussed are the major key issues that are affecting the growth and success of the company in a negative manner. These issues may affect the future growth of the company. So, Microsoft should develop and implement effective strategies to overcome these issues and to accomplish the goals of the business in an effectual manner.



Cocotas, A. (2012). FINALLY: Microsoft Has Stopped Losing Market Share In Mobile Phones. Available At: [Accessed On: 7th May 2017]

Frommer, D. (2012). Microsoft Isn’t Just Losing Smartphone Market Share: Its Mobile User Base Is Actually Shrinking.  Available At: [Accessed On: 7th May 2017]

Geisst, C.R. (2014). Encyclopedia of American Business History. USA: Infobase Publishing.

Harrison, E. (2011). Why Nokia and Microsoft are getting together? Available At: [Accessed On: 7th May 2017]

Slayton, Z. (2013). Who Is The Next Generation of Cool in Mobile? Available At: [Accessed On: 7th May 2017]


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