Full Project Paper Compile all 5 chapters into a single cohesive final project plan. The final paper must include a cover page, executive summary, table of contents (list of tables, list of images, if
The Microsoft Company
Phase 1 – Background, Business Justification, and Project Introduction
Background, Business Justification, and Project Introduction
The Microsoft Company
Background, Business Justification, and Project Introduction
The background
According to Warner (2019), Microsoft Company is among the world-recognized organizations that develop, create, design, market, retail and supply computing hardware and software. The organization has also developed multimedia files and books regarding its products, like the services offered, development of email etc., as a global marketing process. Additionally, Microsoft Company has a development and research center in Washington, United States, that ensures continuous improvement and better service delivery based on the evolving needs of the clients.
The organization was founded by Allen and B Gates in 1975, where the name Microsoft was an acronym for software and Microcomputers. In 1985m the organization began to dramatically improve its electronic publishing, especially with the creation of Encarta or encyclopedia. According to Wallace & Erickson (1992), in 1986, the organization became publicly owned and the most profitable and powerful globally. It made a record by making twenty-five cents for every dollar sold. In 1996, the organization's net worth got to two billion dollars; by the 2007 recession, the organization had increased its net worth to fourteen billion dollars.
However, over the years, the competition began growing in the technological industry, and the rival companies would accuse Microsoft of unfair competitive practices. Additionally, software prices began reducing gradually since other companies would produce them for lower prices. The US courts determined that Microsoft Company had engaged in unfair competitive programs since it prevented their customers from installing different software on their computers. In 2019, the company was ranked as the top software developer and is currently ranked twenty-first in the fortune 500.
Other Microsoft Company competitors include Facebook, amazon, google and apple. Although the company remained dominant with its IBM, in 2015, it lost to android, which has the most users globally. Some products of Microsoft Company include servers, laptops, desktops, tabs and gadgets. Their software is a visual studio, cloud computing called Azure, Bing and MSN. In 2010, Apple Company was ranked as the most profitable globally; however, in 2018, Microsoft Company retook the position after generating over a trillion dollars.
Over the years, Microsoft users and competitors have claimed monopoly structures, including the programs and devices are not compatible with other software, poor security structures, their programs are not easy to use, and it is not robust. For this paper, we will evaluate Microsoft Company's business need for e-commerce and introduce our project.
The business justification
Over the years, we have understood that Microsoft is among the most valuable companies globally due to profitability, high revenues and great innovation during the development process. However, the organization has been exposed to competition from companies like apple, amazon, and Facebook, among others. (Alt & Zimmermann 2019). Therefore, we would like to develop cheaper options for the Microsoft Company to ensure access to customers, affordability and cheaper options. Therefore, we would like to introduce e-commerce on behalf of Microsoft Company.
Numerous reasons justify the application of e-commerce for Microsoft Company; firstly, it is because there are new competitors in the market using a similar program. For example, amazon and apple companies allow customers to purchase products over the internet conveniently. Therefore, for Microsoft Company to remain competitive, it should consider similar practices. Most companies are eliminating the old in-store purchase program; therefore, Microsoft Company should consider the new change.
The second justification is more customers will access Microsoft Company's products when e-commerce is embraced. Generally, not all Microsoft customers can reach its stores since they are not located in the US or have travelling issues. Therefore, e-commerce will ensure that customers globally can order products shipped within a few hours to days. Customers within Asia and UAE have embraced the role of technology over the years, which is why investing in them is a great option.
The e-commerce option can be justified because it will help Microsoft Company to outsource new markets globally. As stated, the competition between Microsoft Company and other organizations has become intense. Initially, Microsoft depended on American and European markets for profits; however, due to inflation and competition, there is a need to focus on newer markers, especially in Asia, where people are becoming more interested in the technological industry. The e-commerce will help Microsoft Company explore new markets and generate more income over the years.
The e-commerce will be more profitable to the company since it means that when Microsoft establishes a website for sales programs, the long supply chain will be eliminated since people will directly purchase from the company. This means that Microsoft will eliminate costs associated with marketers, suppliers etc., which significantly raises the cost of production. Additionally, customers will pay for their shipment costs. Therefore, the costs associated with transporting and storage will also be significantly eliminated.
Another justification for e-commerce for Microsoft Company is the need to reduce prices; other companies like Samsung, Huawei and amazon highly depend on lower prices to keep running and provide customer service. Therefore, Microsoft needs to gradually reduce its prices for the customers to ensure they can afford such technological products. Since Microsoft Company seeks to engage developing countries like Asia, UAE and Africa, there is a need to ensure products are affordable and reliable.
Therefore, through e-commerce, the supply chain process will be direct. Therefore, costs associated with retailers, wholesalers, warehousing and brokers will be eliminated. This means that customers can assess such products for lower prices. Amazon has been using the same strategy where once products are manufactured, they are directly sold to customers for lower costs. Although the profit margins are low, the organization has kept a good reputation and faster sales, thus leading to overall profitability.
Microsoft Company needs to understand that the technology sector has evolved over the years; in the past, people would drive to the next store and purchase any laptop, TV and gadget required. However, today everything is all about online purchases, where people pay, and products are delivered within a few hours based on the location. Therefore, Microsoft Company should consider making home and office deliveries to compete with Apple and Amazon. Although in the Microsoft Azure program, there is e-commerce access to products and services, the company needs to overhaul its supply chain process.
Project Introduction
For this part, we will understand how the e-commerce segment of Microsoft Company will work to prevent interference with the company's other departments and promote general success. Currently, Microsoft Company does not have a website to sell or market its products; the information on the website includes the company's values, goals, objectives, history, management and leadership. Therefore, the initial step in the project's success is developing a website. (Nanduri et al. (2020).
Through the site, Microsoft Company will be posting information regarding its current in-store products, payment options and locations of the shipment. After a customer selects the product, they would like to purchase, like laptops, specifications will be identified like models, processing power, number of units, color etc. one customer will be allowed to purchase numerous products in one cart. Then the customer will pay for the product and shipment costs, and the company's logistics management will begin the shipment process within the hour. Deliveries will be made between two hours and three days based on the customer's location.
However, delivery delays may happen for international deliveries; products will then be shipped to specific locations as identified by the buyers. Then customers will have two weeks to check the product's performance and make free returns if it malfunctions or does not meet their specifications. We expect the e-commerce process to be customer-centric since it promotes access to products, and customers can seek deliveries from any location. Additionally, customers may specify the product's information required.
Conclusion
The website aims to ensure customers have more access to Microsoft Company's products since they will make orders delivered to specific locations and indicated. Additionally, e-commerce will ensure Microsoft Company can compete with other companies like Apple and Amazon that are using similar programs for customer access.
References
Alt, R., & Zimmermann, H. D. (2019). Electronic markets on platform competition. Electronic Markets, 29(2), 143-149. https://link.springer.com/article/10.1007/s12525-019-00353-y
Nanduri, J., Jia, Y., Oka, A., Beaver, J., & Liu, Y. W. (2020). Microsoft uses machine learning and optimization to reduce e-commerce fraud. INFORMS Journal on Applied Analytics, 50(1), 64-79. https://pubsonline.informs.org/doi/abs/10.1287/inte.2019.1017
Wallace, J., & Erickson, J. (1992). Hard drive: Bill Gates and the making of the Microsoft Empire (p. 426). New York: Wiley. https://oarklibrary.com/file/2/1c4cb41d-0780-423b-a6f4-477b5e2e062f/c0550855-8f4f-409a-b2df-99c31ddefac3.pdf
Warner, J. P. (2019). Microsoft: A Strategic Audit. https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1153&context=honorstheses