Introduction
Microsoft Corporation remains one of the most competitive and profitable companies in the global computer and software industries. Microsoft’s first core competence is the presence of high-quality products that meet the needs of more customers, including Windows, Skype, Office, Visual Studio, and software applications (Lohr 2018). The key competitors also provide desirable services and programs in the global computer industry (Lewis and McKone 2015). The second one is the ability to control rare capabilities that can maximize organizational performance.
Main body
For instance, this firm has an effective research and development (R&D) department that takes innovation to the next level. The immediate rivals also perform positively in this area, such as Toshiba, Dell, Apple, Google LLC, and Samsung. The third core competence is the fact that Microsoft’s business model is hard to replicate. Competitors find it hard to implement the same strategy to achieve their aims. The last one is the presence of organized processes to improve software development. The key competitors also have notable managerial processes that make them profitable.
The outlined competencies have been generating value for the firm within the past decade. However, the main area of strength that might become less profitable is that the presence of an inimitable business model.
Conclusion
This outcome is possible since many companies in the software industry are developing unconventional strategies to meet the demands of all customers and overcome the challenge of competition (Lohr 2018). For example, Google LLC has led the way to become a leading provider of mobile apps. The first identifiable core competence that could emerge in this sector is the use of new technologies to innovate and deliver superior products (Marichova 2018). The next one is the area of organization whereby additional theories focusing on the expectations of the increasing number of Millennials might emerge.
References
Lewis, Alan, and Dan McKone. 2015. Edge Strategy: A New Mindset for Profitable Growth. Boston: Harvard Business Review Press.
Lohr, Steve. 2018. “Microsoft Is Worth as Much as Apple. How Did That Happen?” The New York Times. Web.
Marichova, Aneta. 2018. “Application VRIO Framework to Evaluate Capabilities of the Construction Firm to Create Competitive Advantages.” International Journal of Engineering & Research Technology 7 (8): 362-369.