16-09-2021

Bcg Matrix Of Microsoft Company Background

  • Get Free BCG Matrix Templates in Microsoft Word And Excel Format Person who are working in an organization especially doing job in HR dept are familiar to this management template. Basically BCG stands fo.
  • Microsoft's miraculous Success in business has become a topic to many business experts around the world. What makes Microsoft so successful? This report reveal, analyze and explore the business strategy of Microsoft which make them the world leader in the industry with no close competitors.

The BCG matrix: an example of construction and analysis in Excel. Let’s consider the construction of the BCG matrix on the example of an enterprise. Preparation: Collect data and build the source table. A list of elements to be analyzed is made up at the first stage. It can be goods, assortment groups, company branches or enterprises. BCG Matrix in the Marketing strategy of Microsoft Its windows & online service division and business division dealing with client side businesses are stars, as it is based on the windows OS platform and with high market share on OS its related software offered by the company seems attractive to the customers.

Bcg Matrix Of Microsoft Company Background

Introduction

Diversification is the main strategy used by many corporations in a very competitive market. Many companies including Hewlett Packard (HP) participate in diversification of products and service. The main reasons for diversification are:

  • Growth: the computer market is currently flooded and there is an intense competition. This has resulted in most company’s escaping the stagnating market in hope of capturing other better markets.
  • Risk management strategy: companies diversify to reduce risks.
  • Increased sales and profits: HP Company seeks to increase its market share and maximize on its profits.
  • Economies of scale: diversification enables companies to enjoy economies of scale and this drives production costs down.

HP diversification strategy

To indentify HP diversification strategy, it is imperative to analyze the major products and services offered by the company. They include computer sale, mobile technology, recycling, energy efficiency and providing software solutions. Key HP segments and services also indicate the level of diversification. These are the following:

  • HP
  • HP software and solutions
  • HP Pro-curve
  • HP services
  • Enterprise storage and service
  • Personal system groups
  • Printing and imaging
  • Financial services section

Diversification strategies

At the corporate level, HP has global expansion strategy. The company expands regionally and internationally. This is referred to as the cross border strategy and it lowers production cost and increases sales worldwide. At a business level, the company has several diversifications.

Some of the diversifications are related to the product that HP specializes in and they are just seen as a growth in the same field. These products include manufacturer computer parts, storage devices and other HP services that are related to the computer industry.

HP has also diversified to other products that are not related to their core business. The company is currently diversifying to produce software products, offer financial services and solutions as well as investing in the production of mobile phones.

It must be noted that venturing new markets outside the company’s field of specialization is quite challenging as the company has to compete with experts in this field and the already established companies. For example, HP competes with IBM in terms of software development and with Nokia in the mobile phone technology. One strategy that HP uses is the acquisitions of companies already dealing with these products.

HP has in the recent past acquired companies dealing with hardware, software, services and those dealing with mobile devices. Some of the companies acquired are 3COM Computer Networking, EDS Information Technology Consulting, OPSWARE Inc, Compaq Personal Computers among others.

Impacts of diversification

HP diversification process has been beneficial to the company. The diversification process has increased the sales and profits margins of the company. The company develops one strong brand instead of having individual brands and hence diversification strengthens the HP brand.

HP BCG matrix

The Boston Consulting Group (BCG) matrix classifies products and services of a given business and enables the managers to determine which products should be given priority over the others. The BCG matrix has four sections representing; cash cow, dog, star and question mark.

The cash cow represents products with low growth but high market share, the star represents products with high growth and high market share, the dog shows products and services with low market share and low growth while the question mark represent products with high growth rate but low market share. The BCG matrix for HP is shown in figure 1 below.

Figure 1: The BCG matrix for HP Company

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Bcg Matrix Of Microsoft

Bcg Matrix Of Microsoft Company Background

Reference

IvyPanda. (2019, December 28). HP Corporate Level Strategy. Retrieved from https://ivypanda.com/essays/hp-corporate-level-strategy/

Bcg Matrix Of Microsoft Company Background Images

Work Cited

Bcg Matrix Of Microsoft Company Background Template

'HP Corporate Level Strategy.' IvyPanda, 28 Dec. 2019, ivypanda.com/essays/hp-corporate-level-strategy/.

Bcg Matrix Of Microsoft Company Background

1. IvyPanda. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.


Bcg Matrix Of Microsoft Company Background Design

Bcg matrix of microsoft company background design

Bibliography


IvyPanda. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.

References

IvyPanda. 2019. 'HP Corporate Level Strategy.' December 28, 2019. https://ivypanda.com/essays/hp-corporate-level-strategy/.

References

IvyPanda. (2019) 'HP Corporate Level Strategy'. 28 December.

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