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Hello all! This will be my first blog, and I will be posting weekly about the company Microsoft along with my MBA capstone course.

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Microsoft's Strengths & Weaknesses: A Resource-Based View (Chapter 5)

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Ch. 5 - Evaluating Firms Strengths & Weaknesses: The Resource-Based View This chapter describes how to evaluate a company based on the various resources of the firm. Microsoft's Recourses : Resource Categories : 1. Financial Capital Microsoft has impressive financial resources including a net income of $44.2 billion and retained earnings of $34.6 billion. 2. Physical Capital Microsoft has a large physical capital including $44.1 billion in property and equiptment. 3. Human Capital Of course Microsoft grew with Bill Gates as founder and CEO, but the firm still has impressive leadership including the current CEO, Satya Nadella. 4. Organizational Capital Microsoft is a strongly structured organization with excellent systems in place for continued success. Microsoft absolutely has sustained competitive advantage and distinctive competence that can be shown through the VRIO Framework . Value : Does Microsoft’s resources and capabilities enable the firm to respond to environmental th...
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Tactical Collusion by Microsoft (Chapter 9)

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Ch. 9 - Tacit Collusion: Cooperation to Reduce Competition This chapter focuses on how firms within an industry cooperate in order to reduce competitiveness and raise prices above competitive levels. One of Microsoft's most successful collusion tactics is strategic alliance . The firm often forms an alliance with companies in a closely related industry in order to gain a competitive advantage. One of the most overt example of this tactic is seen with Microsoft's Xbox segment. Microsoft forms alliances with game development companies which allows for exclusive content or early release of content. Examples of this include partnerships with Activation's Call of Duty series where content has been available for Xbox month's earlier than other consoles. Another example is an alliance with 343 Industriesand whereby the wildly popular game "Halo" was only available on Xbox.
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Microsoft's Performance and Competitive Advantage (Chapter 2)

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Ch. 2 - Firm Performance and Competitive Advantage This chapter gives detail and measurements on how to determine if a firm is doing well. The ability to create more economic value than rivals is competitive advantage. Next the chapter gives many quantifiable measurements and calculations to determine a firm's competitive advantage. Finally the chapter touches on stakeholders and how various stakeholders' may judge performance differently. Microsoft : When speaking about competitive advantage, Microsoft tends to have a sustained competitive advantage, especially in the software and personal computer segment. Of course there are moments of temporary disadvantage when the rival companies such as Apple are able to grab at some economic value.  There were many quantifiable measures to determine competitive advantage. Microsoft's economic profit calculation for 2020 is shown below: Net operating profit after taxes (NOPLAT) - 46,746 million Cost of capital - 11.92% Invested capit...
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