microsoft-mission-statement

Microsoft Mission Statement In A Nutshell

Microsoft’s mission is to empower every person and every organization on the planet to achieve more. In 2021, Microsoft made over $168 billion in revenues, with Office Products and Windows as still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and Enterprise (GitHub).

In-depth analysis of Microsoft mission statement

microsoft-mission-statement
As pointed out in its financial statements:
We strive to create local opportunity, growth, and impact in every country around the world. Our platforms and tools help drive small business productivity, large business competitiveness, and public-sector efficiency. They also support new startups, improve educational and health outcomes, and empower human ingenuity.
That makes clear that Microsoft value proposition moves around three key customers and for each of those it offers a different benefit:
    • Small business: productivity.
    • Large business: competitiveness.
    • Public-sector: efficiency.
To achieve its mission and vision, Microsoft looks at three prerogatives:
      • Reinvent productivity and business processes.
      • Build an intelligent cloud platform.
      • Create more personal computing.

Microsoft today has a diversified business model that relies on several units and revenue streams.

From its classic office products for PC and Windows to gaming, professional networking (LinkedIn), search advertising (Bing) and more.

microsoft-business-model
Microsoft has a diversified business model, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). In 2021, Microsoft made over $168 billion in revenues, of which over $52 billion came from Server products and cloud services and $39.8 billion came from Office products and cloud services. Windows generated over $23 billion, Gaming generated over $15 billion, LinkedIn over $10 billion, and search advertising (through Bing) over $8.5 billion.
 
Satya Nadella, Microsoft’s CEO emphasized the full transition of Microsoft, in the 2018 Shareholders’ letter:
 
In sum, our platforms create broad surplus everywhere, from the farmer who is able to apply precision agriculture to conserve resources and increase yields, to the hospital that is able to lower the cost of healthcare and improve patient outcomes, to the largest companies of the world reaching new customers in new markets.
 
And he continued:
 
At a time when digital technology is transforming every industry and every part of our daily life and work, our customers are increasingly looking for a partner whose business interests are fundamentally aligned with their own. At Microsoft, our customers’ interests are core to our success. That is what engenders trust.
 
Microsoft got founded in 1975, and it has been able to remain a relevant company, which not only managed to keep up with new tech innovations and business models, but it also kept growing at a steady rate by investing in other areas.
 
And while Microsoft didn’t win the search war (Google dominated the market), the smartphone war (Apple took over the market), and the social media war (Facebook dominated that industry) it still survived to them, and built a successful business unit in each of those new industries, driven by new business models.
 
As Satya Nadella pointed out in the 2018 Shareholders’ Letter:
 
We will continue to create local opportunity, growth and impact in every community and country around the world. We will continue to invest in the largest growth opportunities and innovate boldly to serve our customers. We will continue to help our customers build digital capability, so they can grow and thrive — today and long into the future.
 
He also closes with a critical remark, for which a few tech companies have realized the need to emphasize more in terms of value proposition:
 
We will continue to work to instill trust in technology across everything we do, to advocate for customer privacy, drive industry-wide cybersecurity initiatives and champion ethical AI. And we will continue to transform our culture to reflect the diverse customers we serve around the world, while holding fast to our timeless values.
 
Privacy, cybersecurity, and ethical AI are concerns that might shape technology in the next decades!
 
In 2022, Satya Nadella highlighted how Microsoft had fully transitioning to become a key player in the cloud business
 
It was a record third quarter, driven by the continued strength of the Microsoft Cloud, which surpassed $23 billion in revenue, up 32% year over year. Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.
It’s important to understand how GitHub has been critical to this transition:
GitHub usage is increasing among both independent developers and start-ups as well as the world’s most established enterprises. 90% of the Fortune 100 use GitHub. In fact, Mercedes-Benz, for example, is using GitHub Enterprise to provide a unified development platform for more than 20,000 employees to build, ship, and maintain software. 
It’s also critical to look at how the digital advertising industry is getting reshaped.
 
As Microsoft, with Bing and LinkedIn has also an important presence there: 
 
advertising-industry
The digital advertising industry has become a multi-billion industry dominated by a few key tech players. The industry’s advertising dollars are also fragmented across several small players and publishers across the web. Most of it is consolidated within brands like Google, YouTube, Facebook, Instagram, Amazon, Bing, Twitter, TikTok, which is growing very quickly, and Pinterest.

Within this market, the most significant players are companies like Google  and Facebook.

Yet, new players like TikTok are growing very quickly, stealing important market shares from Facebook ads machine. 

And also Amazon and Apple are pushing into this industry. 

Microsoft has a diversified business model spanning across Office products, Windows, Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.

Read Also: Microsoft Business Model

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