Microsoft Corporation’s Resources and Capabilities

Topics: Corporation, Microsoft Words: 501 Pages: 2

Does the firm have resources (tangible/intangible) or capabilities that give it a competitive advantage?

Microsoft is a company based in the US that manufactures and develops software products for the use of computers. Some of the software it develops includes; operating systems, server applications, business solution applications, information worker applications, high-performance computing applications, software development tools, and an MSN network that provides internet products and services (Lots of essays 2010). The company has strength in its operating system that is unique in the market; this provides a link between the computer and whoever uses it. It also ventures into the application software and multimedia market (Aaarkstores 2010).

VRISA analysis for the resources found in question 1. Which of the components of the VRISA analysis (value, rareness, imitability, sustainability, and appropriability) do you believe is the most critical to the competitive advantage for the firm you choose in question 1?

VRISA Analysis.

(V)blue	Does the software developed provide the clients with valuable information flow?	Most of the customers tend not to pay attention to the information provided in the software.
(R)areness	Is Microsoft Corporation the only manufacturer and developer of these softwares?	No. There are considerable companies that develop similar programs.
(I)mutability	How possible is it for other firms to imitate the software of Microsoft?	Yes it is possible. Most of the programs are made out of the algorithm done by students.
(S)ustainability	Can the software be substituted by other products?	It is not easy to find any substitute with the same level of performance as the IT-system.
(A)ppropriability	Does Microsoft corporation get some good revenue from the software?	The company gets a lot of revenue. The fiscal year 2009 recorded a decrease of 3.3% due to decrease in the global PC market and economic recess in the world market.

The most critical component for the company is sustainability. This is because the product is very unique hence there is not any means by which the company can diversify in order to sustain its earning from the market. The Company must stick to its uniqueness with the product so as to outdo the rest of the competitors (Lots of essays 2010).

Can any of the resources or capabilities in question 1 be extended to other markets? Why or Why not?

Yes, since the Microsoft operating system dominates the market, the consumers willing to purchase IBM PC based computers go for those that are within the Microsoft operating environment (Lots of essays 2010).

In general, which of the attributes of a resource (value, rareness, imitability, sustainability, and appropriability) do you believe is the most important? Why?

Appropriability, this is because, the financial strength of the company is what makes it favourable to investors. This also ensures that research and development is fully utilized towards innovating and creation of other new products within the same line. The financial stability also enables the company to venture into lucrative marketing that promotes the sale of its diversified products (Lots of essays 2010).