Microsoft Diversification Strategy. Overall Microsoft’s diversification strategy is related The major result of this collaboration amongst segments is a synergy Imagine a large corporation that uses all Windows PCs As an IT purchaser there is a push to also purchase Windows servers because they are designed to work flawlessly with each of those PCs.
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Microsoft’s struggles might seem somewhat perplexing given its stunning success with Windows and the fact that it seems to have pursued a ‘related linked’ diversification strategy of primarily concentrating on products ‘linked’ to technology It has not acquired businesses that are fundamentally anathema to its core product.
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Microsoft is expanding using Related Diversification to move into new lines of business which they hope to use to attract more potential customers Diversification is a strategy of moving into new lines of business Can you think of any examples of Diversification being used? Microsoft Surface Types of Diversification.
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Formula and Steps to Calculate Net Present Value (NPV) of Microsoft’s Diversification Strategy NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + Net Cash In Flowtn / (1+r)tn Less Net Cash Out Flowt0 / (1+r)t0 Where t = time period in this case year 1 year 2 and so on.
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Microsoft’s Diversification Strategy in Business 1 Why did Microsoft the most successful computer software company choose to remedy its strategic disarray? Microsoft 2 How did Microsoft grasp market chances to diversify its operation beyond its comfort zone fighting all the way with 3.
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Microsoft’s Diversification Strategy Introduction This essay plans to focus on the corporate strategy of Microsoft and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage This essay will utilise the following structure.
