Your school and paperwork might have encountered different Microsoft products over the years; some brands under this company will be familiar to you. It might be efficient to explore its services and products using a Microsoft BCG matrix. If you're learning about Microsoft or exploring how a BCG matrix works, this article is for you. Continue reading to know more.
Background of Microsoft
Microsoft was established on April 4, 1975, by two friends, Paul Allan and Bill Gates, in New Mexico. The company works in various industries, including hardware and software computers, consumer electronics, and digital distribution. Initially, Microsoft focused on interpreting systems for the Altair 8800. Later, it became a market leader in computer operating systems. Along the way, Microsoft has lost its share in the market to tough competitors.
Microsoft BCG Matrix Analysis
Like any diagram, the BCG matrix for Microsoft has four segments. These sections represent the various products the company has developed through the years. The matrix is a visual tool from which you can take inspiration if you're about to create your business's BCG framework.
The products which hold higher market and growth shares are considered stars. Microsoft Teams and Azure Cloud Platform are what you'll see in the stars segment of the Microsoft BCG matrix. These two products generate the most sales and revenue for the company. In return, Microsoft also needs to invest more in them to maintain excellent profitability amid the changing market trends.
Surface hardware and Xbox gaming consoles are Microsoft's, with low market share but higher market growth. As you know, items in the question mark quadrant of the BCG matrix for Microsoft could mean they have yet to be fully developed. With an effective producer development strategy, the company can bring these two products to the star segment.
Windows operating system and Microsoft Office Suite can fall under the cash cows section of the BCG matrix for Microsoft. Cash cows generate low market growth but have a high market share. The products in this segment allow companies to sustain their financial position for the long term. Obviously, Microsoft has solidified its position to be one of the leading operating system providers through Windows. Market trends could change, though, so the company has to innovate its strategic and product development plans to keep a considerable market share.
Dogs are services or products that could still be there but generate low sales growth and market share. In some cases, they can only break even; that is why some companies consider dogs liabilities. Looking at the BCG matrix for Microsoft, some Windows phones have been discontinued already. With Apple and Samsung in competition, it was even hard to get a solid market share for the product. It was in 2017 when Microsoft decided to stop manufacturing such phones. In 2022, all Windows phones were no longer supported by Microsoft.
The BCG matrix for Microsoft allows you to see a clearer picture of which among its products are performing well in its respective markets. You also saw how they discontinued Windows phones after realizing it's not worth manufacturing anymore. The BCG matrix is a strategic tool that enhances our understanding of Microsoft's product performance across various markets. Notably, Microsoft's astute decision to discontinue Windows phones, recognizing their diminishing value, exemplifies their dynamic approach to refining their product lineup. This strategic move underscores Microsoft's commitment to staying agile and market-focused.
Like Microsoft, you can also structure your BCG matrix and assess where your products or services stand in the market. Boarmix offers an easy-to-use BCG matrix. It's a pre-built diagram, so you can use it and provide details for each segment. You can customize the template, including images, stickers, shapes, lines, arrows, and changing colors. Most importantly, it promotes better collaboration as creators can share the finished template using a unique link.
BCG Matrix of Microsoft Corporation. (2017, March 18). https://bcgmatrixanalysis.com/bcg-matrix-of-microsoft-corporation/