While investing in growth, Microsoft must also acknowledge their weaknesses and work to manage and
minimize them. They have successfully begun to address weaknesses in manyconsumer preference areas, such as
the over-saturation of the consumer software area by diverting into enterprise software. Significant weaknesses
related to perceptions and security must also bemanaged.
Migrate perceptions and re-brand. While Microsoft has successfully begun to alter its reputation among
consumers, many IT purists and CIOs remain leery of Microsoft products because of theirimage as the evil
empire. To manage this weakness and repair their tarnished image, Microsoft should re-brand as a company that
serves to make business function easier and seamlessly, throughenterprise software solutions.
Address security concerns. As technology becomes more seamless, and as devices outside of the PC are
used more extensively, consumers are becoming more concerned aboutsecurity, especially in the enterprise
software area. Microsoft is poised to shape consumer preferences in this area, but to do so, will need to spend
considerable revenues in researching and responding tosecurity concerns.
Investing in Growth
Because enterprise software is a star for Microsoft, and ranks in the build category, they should use
their cash reserves and revenue generated fromdesktop software (cash cow) to invest in growth, while divesting
of their dogs (such as Xbox), so that more cash can be devoted to enterprise software. Microsoft is in an enviable
position to spendthe money necessary to compete effectively in the industry. By innovating, creating demand,
investing in competitors and going global, Microsoft will invest in growth.
Innovate. Microsoft shouldcontinue their tradition of innovation through applying this tradition to
enterprise software, especially through .NET. Suggestions include:
• Create an educational version of their enterprise...