Question

.Evaluate Microsoft’s recent expansions into areas such as search engines and smart phones. Do you think these are good areas of growth for Microsoft? Why or why not?

Answer 1

Recent expansion in search engines and smart phones

With the advent of smart phones and advanced technology, the penetration of technology through smart phones has hit the roof already. It is one of the channels that can be leveraged for easier and deeper penetration. And Hence Microsoft though it would be a great idea to enter into the smart phone industry which was already loaded with heavyweights such as Samsung, Apple etc. The timing of the entry was critical here. If it had entered around the 2008-2009 period, it would have become a major player in the smartphone industry but it clearly missed the bus here. The acquisition of Nokia was definitely late and by that time Nokia itself was under deep waters. Though it enjoyed some success through its Lumia series of phones, it could never achieve the same success that Samsung or Apple had achieved.

The search engine has been another not so great story for Microsoft. With Google putting a lot of innovation in its search engine through the release of ad words and SEOs, it has clearly captured a major chunk or market share in the search engine industry. Microsoft Bing has had some limitations in this front and hence has not able to compete well with Google. Microsoft should continue selling its core product of OS and not deviate entirely from it but it still can continue diversifying in businesses like Xbox where it has seen some success.

The search engine has been another not so great story for Microsoft.

 Microsoft Bing has had some limitations in this front and hence has not able to compete well with Google.