Macro and Micro Environmental Analysis PESTEL The PESTEL analysis is performed to analysis the macro environment of the industry. The PESTEL analysis provides a frame within which the strategic thinking of the company for the future takes place. The analysis sets boundaries and expectations (Burke, Clarke, et.al, 2008, p.27). Political factors of the US software industry seem to be stable. The government has promoted the IPR protection as the US software industry experience a loss of about $12.
8billion due to inadequate protection (Brown, et.al, 1995, p. 9). The US economical factor represents a strong GDP rate of $47200. In the market oriented economy, private firms and individual dominates the business. US business enjoys a better flexibility than the other parts of its counterparts (Central Intelligence Agency, n.d). With the population becoming savvier about the software industry there has been a steady rise in the software applications and industry. The social factor of the US has demanded the country to produce more software application.
The technological factors of US software industry have enabled it for the global distribution of software management teams. With a technological advance the software industry has been able to develop a new phase in the software industry. . Legal factors include compliance with issues like Open Source Initiatives. The companies are following the source code to protect it against any threat. Also the use of illegal software is prohibited. Product-market industry analysis The product market industry is analyzed with the help of two dimensions and their extremes which is the product-market matrix.
This matrix explores the two dimensions Product and Market (Lowy & Hood, 2004, p.134). Figure 1: Product-Market Matrix (Source: Lowy & Hood, 2004, p. 135) Microsoft with the launch of Windows 7 Phone has come up with a product development and hence its product Windows 7Phone would fall under the first quadrant of Product development. Microsoft has understood the positive relationship with its customers and also the goodwill and thrust that accompany it. When ZuneHD was launched it gained a positive feedback and thus Microsoft also expect the same from its 7 phone.
With a growth in mobile phone, it has become a major computing platform for big giants like Microsoft, Apple. The market of Smartphone is expected to grow by 705 thus investment in this growing sector would help Microsoft gain profits and revenue as well as capture the market share. The new product, Windows 7 Phone, resents a lot of information more clearly and it’s easy to navigate. Therefore the product development by Microsoft is its new Windows 7 Phone. Competitor’s analysis The competitor analysis aims to evaluate the company with its peer group with a motive to analysis the company’s positioning with its competitors.
Microsoft top competitors are Apple and Google. Apple known for its innovation, with its release of iPhone has revolutionized the mobile industry. Also with its innovation in desktop and laptops
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