Management’s Discussion and Analysis (MD&A) memo of Microsoft indicates that the company is capable of leveraging its key strengths to realize several opportunities for future growth. The ever-increasing rate of the proliferation of handheld devices provides the company with the prospect of increasing the reach of its software ecosystem. Additionally, the company is planning on making decisive steps in the direction of creating a large family of devices featuring end-user services similar to Xbox and Surface (Microsoft, 2013). It has to be borne in mind, however, that this prospect appears to be extremely optimistic in the light of a recent report revealing that the company’s share of the smartphone market has dropped to 0.8 percent from the previous year’s figure of 2.3 percent (Thorp-Lancaster, 2017).
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Another point that was particularly prominent in the memo is the development of enterprise-class applications, which bodes strong expansion opportunities under the current economic conditions. If the company continues its successful forays into the market of cloud-based solutions, it can undermine the standing of the current key players. The memo makes it clear that Microsoft is capable of taping into this new area of growth by capitalizing on its experience in developing and bringing to the market products such as Windows Azure and Windows Server 2012 (Microsoft, 2013).
It should be noted that the future prospects of the software giant rest on the following technological pillars: machine learning, cloud-based solutions, and cross-device connectivity. The breadth of Microsoft’s technological expertise, which is underscored by its existing range of products, will be instrumental in helping the company to explore new growth opportunities. It is clear that the current competitive standing of the tech powerhouse hinges on its ability to expand its existing hardware and software ecosystems.
Thorp-Lancaster, D. (2017). Kantar’s latest smartphone market share report sees Windows Phone dip below 1% in the U.S. Web.