Strategic Problems - Microsoft
Strategic Problems
Improving Microsoft’s standing as an innovator
Over the past few years, Microsoft has been suffering from their reputation as a follower since Apple and Google have taken the lead in the world of smartphones and tablets. Microsoft’s Xbox business keeps them ahead in the gaming industry (34% market share) which will keep them relevant and afloat in the 13-30 age demographic, but the company overall could use an upgrade in its reputation as a cutting-edge innovator. One key will be identifying and capitalizing on the next big shifts in devices and services, as cloud-connected technologies become smaller and more deeply integrated into our lives. Microsoft should take advice from their former CFO John Connors, “If you look at the shifts in the device world, the shifts have happened pretty regularly. So they’ve got to emerge as a leader in the next big shift, and that will be his great challenge, but also his great opportunity.”
Integrating Nokia
Microsoft’s $7.2 billion acquisition of Nokia’s smartphone business closed at the end of 2013. This added some 30,000 employees and kicked off an entirely new phase in the company’s devices and services strategy. Microsoft has a history of difficult and failed acquisitions, including the $6.3 billion purchase of aQuantive and a $1.4 billion purchase of Navision. No doubt Microsoft’s CEO learned a few lessons from that process. Applying them to successfully integrate Nokia will be one of his first big challenges, but also a great opportunity to make Microsoft more relevant in a key market.
Navigating the new internal politics
Microsoft didn’t just get a new CEO, but they also have a new board chairman, a new activist investor, an entirely new organizational structure, and a new employee review system. With all of these new hires and promotions it could be hard to get past office politics and keeping the same culture. It was hard enough for Satya Nadella to step in and run a company the size of
Improving Microsoft’s standing as an innovator
Over the past few years, Microsoft has been suffering from their reputation as a follower since Apple and Google have taken the lead in the world of smartphones and tablets. Microsoft’s Xbox business keeps them ahead in the gaming industry (34% market share) which will keep them relevant and afloat in the 13-30 age demographic, but the company overall could use an upgrade in its reputation as a cutting-edge innovator. One key will be identifying and capitalizing on the next big shifts in devices and services, as cloud-connected technologies become smaller and more deeply integrated into our lives. Microsoft should take advice from their former CFO John Connors, “If you look at the shifts in the device world, the shifts have happened pretty regularly. So they’ve got to emerge as a leader in the next big shift, and that will be his great challenge, but also his great opportunity.”
Integrating Nokia
Microsoft’s $7.2 billion acquisition of Nokia’s smartphone business closed at the end of 2013. This added some 30,000 employees and kicked off an entirely new phase in the company’s devices and services strategy. Microsoft has a history of difficult and failed acquisitions, including the $6.3 billion purchase of aQuantive and a $1.4 billion purchase of Navision. No doubt Microsoft’s CEO learned a few lessons from that process. Applying them to successfully integrate Nokia will be one of his first big challenges, but also a great opportunity to make Microsoft more relevant in a key market.
Navigating the new internal politics
Microsoft didn’t just get a new CEO, but they also have a new board chairman, a new activist investor, an entirely new organizational structure, and a new employee review system. With all of these new hires and promotions it could be hard to get past office politics and keeping the same culture. It was hard enough for Satya Nadella to step in and run a company the size of