Microsoft's .Net Case Analysis

Situation analysis

Steven Ballmer Microsoft CEO and his longtime boss, William H. Gates III, are about to embark on their second attempt at remaking Microsoft into an Internet powerhouse.

On June 22, the duo planned to launch a broad initiative called the ''.Net.'' The endeavor is designed to deliver software and services that automatically link various Web sites so people can use the Internet to organize all of the information in their lives. To Ballmer, Microsoft's new strategy will change computing as profoundly as the Internet has. For Gates & Co, this is big staff. Microsoft called it the most important shift in its corporate vision since the software giant launched its internet strategy five years ago.

SWOT analysis

1- Opportunities

• Different business sites could be linked together without the need for extra efforts.

• Email users can access their email from anywhere and any device

• Loyalty of software developers to Microsoft.

• Huge web applications market that worth tens of billions and Microsoft wants a piece of it.

• If Microsoft pulls .Net off, the software maker could utterly transform the Internet.

Probability of success

High Low

Attractiveness High • Different business sites could be linked together without the need for extra efforts.

• Email users can access their email from anywhere and any device

• Huge web applications market that worth tens of billions and Microsoft wants a piece of it.

• If Microsoft pulls .Net off, the software maker could utterly transform the Internet.

Low • Loyalty of software developers to Microsoft.

The opportunities matrix

2- Threats

• Rival companies such as HP, Oracle and Sun are developing similar products

• The challenge of getting the customers and software developers to focus on the .Net message while US government fights with Microsoft to split into two companies

• Traditional windows based users and windows software developers’ old mentalities resisting change.

• Microsoft windows divisions and their resistance to change and their fear to be faced out of business

• The company today plans only to release .Net software tools for Windows developers, with no timetable for letting others in.

• Inside the company there are forces that are compounding the situation. On one side are managers who argue passionately that Windows should remain the top priority and that nothing should be done that would weaken its hold on the PC industry.

• antitrust ruling that could lead to its breakup

• The way Microsoft is trying to weave Windows with .Net might land it in more trouble with the Justice Dept.

• Trustbusters want to snap Microsoft in two, in part to prevent the software maker from leveraging its Windows monopoly into new businesses.

• If Microsoft's .Net strategy fails, it will be stuck in the past--another example of the difficulty of corporate reinvention.

Probability of occurrence

High Low

seriousness High • Rival companies such as HP, Oracle and Sun are developing similar products

• Inside the company there are forces that are compounding the situation. On one side are managers who argue passionately that Windows should remain the top priority and that nothing should be done that would weaken its hold on the PC industry

• antitrust ruling that could lead to its breakup

• The way Microsoft is trying to weave Windows with .Net might land it in more trouble with the Justice Dept

• Trustbusters want to snap Microsoft in two, in part to prevent the software maker from leveraging its Windows monopoly into new businesses

• If Microsoft's .Net strategy fails, it will be stuck in the past--another example of the difficulty of corporate reinvention • Traditional windows based users and windows software developers’ old mentalities resisting change.

• Microsoft windows divisions and their resistance to change and their fear to be faced out of business

•

Low • The challenge of getting the customers and software developers to focus on the .Net message while US government fights with Microsoft to split into two companies • The company today plans only to release .Net software tools for Windows developers, with no timetable for letting others in

The threats matrix

From the above analysis we can characterize Microsoft .Net business to be a speculative business, which is high both in opportunities and threats

3- Strengths

• Financial and human resources capabilities

• Market share monopoly of the desktop windows based operating systems

• Microsoft launched Passport a sister application that allow online users to save their data and credit card info for easier e-business transactions.

• Microsoft has all the pieces to put the puzzle together.

• Microsoft's arsenal of products, everything from database software to its monopoly operating system.

• Mix in its Web businesses,