Microsoft Diversification Strategy. Abstract The purpose of this essay is to examine Microsofts diversification strategiesINTRODUCTION In 1975 a visionary dropout from Harvard University set out with a brilliantMICROSOFT’S DIVERSIFICATION STRATEGY Microsoft’s conceptualization of its businessMICROSOFT’S MOTIVE FOR DIVERSIFICATION Microsoft has strategically moved from.
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Market Penetration Through Licensing AgreementsProactive and Reactive Product Strategy of MicrosoftMarket Diversification and Market SegmentationMaintaining A MultiStream Revenue StrategyRelated to diversification and market segmentation Microsoft makes moneythrough different income streams For starters its software licensing agreements enable it to earn through onetime licensing fees and royalty fees from computer manufacturers and software developers Products such as Windows Office and the Xbox are the main income drivers under this specifi.
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Over time Microsoft has highly diversified its product range and revenue base Instead of focusing only on the PC or cloud segment it has continued to expand the array of products and services it offers The company has acquired several businesses that have helped it enter new business areas and expand its user base.
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Microsoft uses diversification strategy occasionally Entering the cloud business in 2006 the same year as its rival Amazon launched Amazon Web Services can be mentioned as the most notable example of diversification strategy engaged by Microsoft This bet proved to be highly successful though.
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What is diversification strategy? Diversification is the fourth intensive growth strategy of the Ansoff matrix.
