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. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.
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-revenue-breakdown-2018

Microsoft Revenue Breakdown Based On Its Financial Statements

Satya Nadella, Microsoft‘s CEO emphasized the role 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!
digital-advertising-revenues-amazon-google-facebook-twitter
According to eMarketer, in the US alone, digital advertising spending will be around $129 billion. Within this market the most significant players are companies like Google ($116 billion in 2018 from search advertising), Facebook (over $55 billion in advertising revenues in 2018), Amazon (over $10 billion in 2018 from product advertising), Twitter (with $2.6 billion in advertising in 2018), and Microsoft’s Bing (search advertising for about $7 billion in 2018)
microsoft-business-model
Microsoft has a diversified business model spanning across Office products, Windows, Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud and more. 

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which he brought to reach about a million business students, professionals, and entrepreneurs in 2019 alone | Gennaro is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate and become profitable | Gennaro is an International MBA with emphasis on Corporate Finance | Subscribe to the FourWeekMBA Newsletter | Or Get in touch with Gennaro here

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