Microsoft is a household name in almost every part of the world. Even if someone hasn’t used any Microsoft product, they must have heard about it in their lives at least once.
However, a lot of us don’t know about the complete product line of Microsoft. Exploring Microsoft’s services and products using a Microsoft BCG matrix could be helpful. Let’s have a look at the BCG matrix of Microsoft after a brief introduction to the company.
Microsoft Background
Microsoft was founded on April 4, 1975, by Bill Gates and Paul Allen in New Mexico. The company operates in many fields, such as computer hardware and software, digital services, and consumer gadgets.
During its early days, Microsoft mainly focused on software production for the Altair 8800. Eventually, it became a household name in computer operating systems. However, Microsoft has faced stiff competition and lost some market share along the journey.
BCG Matrix of Microsoft
Stars in Microsoft BCG Matrix
In the Microsoft BCG matrix, products with significant market share and growth are categorized as stars. The stars for Microsoft are Microsoft Teams and Azure Cloud Platform. These products contribute the most to the company’s sales and revenue.
It is necessary for Microsoft to continue investing in them to ensure sustained profitability in this rapidly evolving market trends.
Question Marks in Microsoft BCG Matrix
Microsoft’s Surface hardware and Xbox gaming consoles have a relatively low market share but higher market growth. In the BCG matrix, these products fall into the question mark quadrant, showing they may not have reached their full potential yet. By implementing an effective product development strategy, Microsoft aims to convert these items into the stars.
Cash Cows in Microsoft BCG Matrix
The Windows operating system and Microsoft Office Suite fall into the cash cows category within Microsoft’s BCG matrix. These products show low market growth but maintain a high market share. They serve as stable revenue generators, ensuring long-term financial stability for the company.
Microsoft has established itself as a prominent provider of operating systems, particularly through Windows. However, to adapt to potential shifts in market trends, the company continuously innovates its strategic and product development approaches.
Dogs in Microsoft BCG Matrix
Dogs refer to services or products with low sales growth and market share, often struggling to break even. In some instances, these products are considered liabilities. Within Microsoft’s BCG matrix, certain Windows phones have faced discontinuation. Due to immense competition from giants like Apple and Samsung, achieving significant market share proved challenging for these products. Microsoft ceased manufacturing Windows phones in 2017, and by 2022, all support for Windows phones had been discontinued.
Summing it up
Microsoft, founded in 1975 by Bill Gates and Paul Allen, operates across various sectors, including hardware, software, digital services, and consumer electronics.
The company’s iconic products, like Windows and Microsoft Office, are considered cash cows with a high market share despite low growth.
In contrast, emerging products like Surface hardware and Xbox fall under question marks, indicating potential for growth.
Meanwhile, stars like Microsoft Teams and Azure Cloud Platform drive significant revenue and require continued investment.
However, some products, like Windows phones, have faced discontinuation due to tough competition, marking them as dogs in the BCG matrix.