Globalization and Microsoft

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The presentation "Microsoft CEO's Global Strategy | CNBC" (2014) details some of the challenges faced by modern businesses in our era.  The diversification of businesses internationally and the expansion of client bases in both domestic and foreign locales has necessitated adapting marketplace strategies and approaches to successfully address and capture these markets, as their needs may differ from those of America or other countries.  Nadella references this concept specifically within the interview, as he observes that there can be a vast growth opportunity for most corporations in these venues due to the overall strength of a global economic structure and its core audiences.  Likewise, De Kluyver (2010) points out that product globalization can only be a boon and benefit for workplaces and consumers alike, since it eradicates the bonding and branding of products to a particular locale and instead allows them to be “universal” across the world, thereby expanding the potential for greater sales and profitability overall (p. 3).  

Therefore, out of the three generic strategies discussed by Porter, Microsoft appears to mainly endorse differentiation.  Through expanding potential client base by way of an international market, there is a greater possibility for success and competitive advantage in gaining ground in a larger number of countries and locations, which in turn could increase profit margins and favorable customer perceptions alike.  Too, I would suggest expanding the market for Microsoft as a strategy as well, since modern technology such as the internet has created a greater advantage in marketing reach while lowering the cost in attaining such audiences.  As such, presenting these items as attractive purchasing options can only serve as a win-win for both sides in sales and marketing approaches alike.

References

De Kluyver, C. (2010). Fundamentals of global strategy. New York [N.Y.]: Business Expert Press.

Microsoft CEO's Global Strategy | CNBC. (2014). Retrieved from https://www.youtube.com/watch?v=Uu-Ol78lCi0