Microsoft's Cost Leadership Strategies (Chapter 6)

Ch. 6 - Cost Leadership

This chapter describes how a firm can choose a cost leadership buisness strategy to can gain an advantage by reducing economic cost below the competitors.

Microsoft's Cost Leadership Strategies:

Microsoft has many sources of cost advantage that allows the business to function without sacrificing quality.

• Manufacturing: Microsoft has a lean strategy to achieve low cost and high quality simultaneously. 
• Marketing: Microsoft has reliable products and services that continues to grow due to the proven value.
• R&D: Microsoft continuously focuses on improving products year after year. This includes trying new software of providing frequent updates to improve software.
• Finance: Microsoft has a stable financial structure with relatively low cost to operate.
• Accounting: Microsoft collects data for proper accounting principles that are divided into three segments: Productivity & Buisness, Intelligence cloud, and Personal Computing.
• Sales: Microsoft focuses on providing reliable products and services that can be sold to consumers at a range of prices depending on the degree of access/performance desired.