Microsoft Lumia - Stakeholder Analysis, Competitor analysis & Critical success factors for the industry

Stakeholder Analysis

To understand Microsoft’s vast stakeholder’s list we need to understand their mission when they first became a company. ‘To have a computer on every desktop in every home’. The enormity of this goal was the reason why Microsoft became so big. Everyone I know has used their software or typed in Word. It’s just a fact that Microsoft has a very large stakeholder base.

Microsoft sell distribute software through OEMs that pre-install our software on new PCs, servers, smartphones, and other intelligent devices that they sell to end customers. Some of the OEM’s include Acer, ASUSTek, Dell, Fujitsu, HTC, Hewlett-Packard, LG, Lenovo, NEC, Nokia, Samsung, Sony, and Toshiba. (Annual Report, 2011). “Many organisations that license our products and services through enterprise agreements transact directly with us, with sales support from solution integrators, independent software vendors, web agencies, and developers that advice organisations on licensing our products and services ("Enterprise Software Advisors"). Some of our distributors include Ingram Micro and Tech Data, and some of our largest resellers include CDW, Dell, Insight Enterprises, and Software House International. Our Microsoft Dynamics software offerings are licensed to enterprises through a global network of channel partners providing vertical solutions and specialised services. We distribute our retail packaged products primarily through independent non-exclusive distributors, authorized replicators, resellers, and retail outlets. Individual consumers obtain these products primarily through retail outlets, such as Wal-Mart and Dixons” (Annual Report, 2011).

Competitor analysis

Microsoft has many competitors, namely two big ones. Apple and Samsung. Together they have dominated the smartphone market and do not show any signs of giving up. ‘’With fierce competition in the electronics industry, Microsoft’s mobile is facing every kind of problems in development, smart-phone’s challenged from Apple and Google, also there has problems with products, research and development, marketing strategy and enterprise development strategy. Microsoft needs to plan its strategy as a “universal key” to open each locks’’ (Microsoft Corporation’s Strategy, 2015). As I mentioned before “iOS and Android, comprised 15.8% and 81% of the smartphone software market share, respectively. (‘Another Painful Reminder of Microsoft's Bungled Nokia Acquisition’ 2016). Microsoft is already at a disadvantage because of this overwhelming market dominance, and by replacing the android OS with their own windows operating system they have eliminated all the popular applications that would otherwise be fund on iOS and Android systems. “The Index revealed that 62 percent of active smartphone users have used their phone to replace other technology products including their digital camera and GPS navigation system, as well as games, the morning newspaper, photo album, letter box, catalogues and banking” (82% of Australian smartphone users are never without it, 2015).  Microsoft have limited applications on their software and have ditched Googles GPS or Maps application altogether as well as Androids contactless payment system. Apple has already implemented this into their devices so Microsoft is way behind the eight ball and need to consider some new ideas in order to gain more competitive advantage.

Critical success factors for the industry

To under the success of Microsoft we need to understand the organisation on all platforms. “In an interview with International Business Times in July 2013, Nokia vice president Bryan Biniak urged Microsoft to fix the various platform issues, such as the lack of certain key applications: "It's not just about the hardware, it's about the tools that are on the hardware. You can't sell a phone The Microsoft-Nokia Strategic Alliance Page 14 without the apps, you just can't." (Gilbert, 2013). Biniak explains that Microsoft needs not only to innovate as they have done with the continuum and other features they have added to the Lumia but also to compete with what customers want, and what they want is applications. It’s no secret that the success or failure of a product comes from brand image, price and advertising/marketing. However, there are some real key Pro’s for Microsoft in-terms of brand-image and price. They have a great looking phone that can do some really interesting and standalone stuff. However, no one really knows about it. The success doesn’t come from the advertisement of the product. “Seventy-two per cent of shoppers said they were already aware of the product they wanted to purchase in-store through their own research, rather than through advertising” (Harper, 2015). So where does Microsoft fall short? “Many have experienced the same situations as I have where you have to explicitly ask for a Windows Phone when you visit a carrier store. Windows Phones are not on display anywhere. The devices sit on shelves in the backroom, gathering dust. Just like the Microsoft Band at Best Buy, to the normal shopper Windows Phone just doesn’t exist, either. Salespeople at carrier stores have said, "No one wants them, no one is buying and they don't have any apps" (Trent, 2015). And how does Microsoft succeed in gaining market share? Well that can answered in many ways. However, I have one proposition, keep selling in bulk to businesses but tailor to an everyday customer’s needs. If Microsoft work on making the phone more consumer friendly with built in GPS and online banking Apps then people might start to consider the Lumia as an actual alternative to Apple or Samsung. Also Microsoft should consider investing in marketing to help push the products brand image so that salesmen at stores aren’t dismissing the product as an actual piece of garage. 

References:

Trent, R 2015, ‘Microsoft Band Retail Channel Suffers from Windows Phone-it is?’, Super Site for Windows, http://winsupersite.com/microsoft-band/microsoft-band-retail-channel-suffers-windows-phone-itis

Harper, J 2015, ‘Smart shoppers: online and mobile’, GoldCoast, p. 65-93.

GILBERT, D 2013, ‘Nokia: Microsoft Must Evolve to Make Windows Phone a Success’, International Business Times http://www.ibtimes.co.uk/nokia-microsoft-needs-evolve-windows-phone-succeed-494885.

‘Microsoft Corporation’s Strategy’ 2015, http://studymoose.com/microsoft-corporations-strategy-essay.

2011 Annual Report, ‘Distribution, Sales and Marketing 2011’, Financial Review, Microsoft Corporation.

‘Another Painful Reminder of Microsoft's Bungled Nokia Acquisition’ 2016 Emirates News Agency, p. 11-179.

82% of Australian smartphone users are never without it, 2015, Telecompaper Asia, 15-93.