The unique selling proportions for Microsoft are competitive pricing, compatible services, and high quality products. The company targets users of computer and mobile phones across the globe. The company uses multiple-product branding to reach these customers. The company’s products are technology-based and created through series of research to meet the needs of customers looking for product that can suit their lifestyle.
The company uses multiple pricing strategies, especially for the software products to ensure that customers are given a variety of products under the same roof. This is the opposite of the good-better-best pricing adopted by IBM and Oracle. The sales and profit objectives are to offer products that serve multiple purposes at a very friendly price. Microsoft products are marketed across the globe due to wide market coverage. The products feature in the online and traditional stores.
The products are promoted through online and offline advertisements, series of discounts to loyal customers and corporate users, referrals from distributors, and strategic customer relationship management within its 24/7 customer care center. The online marketing is ideal in software products since many customers have an access to it.
Macro-Environment Factors (B2B Perspective)
Demographic forces
The aspects of age, size, and occupational perceptively directly affect Microsoft Company and its competitors. For instance, the primary competitors such as Google, Oracle, and SAP IBM have products that are designed to serve the same population as Microsoft. This means that Microsoft has to package its products in a better way to ensure market sustainability in the midst of these competitors that sell products that perform similar functions to the same population.
Socio-cultural forces
The global business arena consists of dynamic markets that Microsoft and its competitors carefully penetrate in order to survive the swings in the business environment. Besides, Microsoft must define and create a unique market in terms of product benefits to compete with other businesses such as Oracle and Google, which are well established in this market. However, the effect of socio-cultural forces is low since the companies within global PC industry have more or less similar products and business approach.
Economic forces
The stable economic environment in the US and other major markets targeted by Microsoft and its competitors such as Oracle and Google have created ideal climate for business expansion and profitability. Besides, the stable economic environment has become a pull factor for launching more products by the technology giants such as Microsoft and its competitors. However, the current economic challenges in the US and other parts of the world are threatening the profitability of businesses with the PC and technology related industries.
Technological forces
Companies within the global PC industry such as Microsoft, Google, and Oracle among others have invested heavily in the latest technology in order to have a sustainable business platform, in terms of distribution, market penetration, and ethical aspects of secure technology. Besides, since there is high technological turnaround in the industry, Microsoft and other competitors have to invest heavily in research and development to avoid being in a position of operating obsolete products that have been surpassed by technological metamorphosis. At present, Microsoft is one of the leading businesses in technological application way above most of its competitors such as Google and Oracle.
Ecological forces
Although most companies have been operational within sustainable environmental practices, there have been incidences of conflict between these companies and the conservationists. For instance, most of the mobile manufacturing companies such as Microsoft, Apple, and Samsung have been accused of negligence, especially in sourcing for raw materials used in manufacturing phones and e-waste disposal. Therefore, Microsoft should package its products to include the aspect of environment friendliness to appeal to the distributors.
Political forces
Most of the markets where Microsoft and its major competitors operate are relatively politically stable. This means that Microsoft has an opportunity to build strong and sustainable distribution network with company agents across the globe. However, the current political uncertainty in some part of Africa and the Middle East is threatening the distribution of Microsoft products among its agents.