Acknowledgement

Firstly, we would like to express our heartfelt gratitude to Asia Pacific University for providing
such a golden opportunity to work on a specific project. Also, we want to convey our sincere
gratitude to Lord Buddha Education Foundation (LBEF) for making this project possible by
providing with the proper learning environment, guidance and required facilities. For our research
project, we have chosen F1Soft company for our project.

We extend our special gratitude to our subject teacher Mr. Ramesh Suwal for his continuous and
valuable guidance, suggestions, timely supervision and cooperation in completing this project. We
would like to appreciate the support, directly or indirectly of all the members of the LBEF family.

Above all, we glorify the Almighty God for the strength courage, wisdom, and inspiration
throughout our studies.

Sincerely,

Roshan Kafle(NP000113)

Ruven Achhami(NP000114)
 Abstract
As per the prescription of the syllabus for BSc.IT 5th semester, it offers students like us an
opportunity to put forward the knowledge we acquired through the curriculum and syllabus in a
practical term and explore theoretical knowledge in technical skill. Here, this is the research report
aimed at mixed readership, in terms of technical and managerial knowledge. We team members
have chosen Microsoft Corporation for our research report. The main responsibilities of team
member are to do research on company background, business model, business strategy as well as
IS and IT strategy of the particular company. In the individual section, we have described the
company product and service that the company and carry out a SWOT analysis in particular
company product and services.

For this research report, we have done vast research on Microsoft Corporation multinational
technology through online sources. Presenting a Research Report is very challenging and small
pieces of information are equally important.
Table of Contents
1 Introduction ............................................................................................................................. 1
2 Background ............................................................................................................................. 1
2.1 Details of company........................................................................................................... 1
2.1.1 Current scenario ........................................................................................................ 2
2.2 Latest Development.......................................................................................................... 2
2.3 Business Model ................................................................................................................ 3
2.4 Business Strategy ............................................................................................................. 4
3 IS and IT strategy .................................................................................................................... 5
3.1 IS strategy......................................................................................................................... 5
3.2 IT strategy ........................................................................................................................ 7
3.3 IT Tool.............................................................................................................................. 8
4 Critical Evaluation ................................................................................................................ 10
5 Individual Part-1 (Roshan Kafle NP000113) ........................................................................ 10
5.1 Selected Product ............................................................................................................. 10
5.1.1 SWOT Analysis of XBOX...................................................................................... 11
5.1.2 Strengths in the SWOT analysis of Xbox ............................................................... 11
5.1.3 Weaknesses in the SWOT analysis of Xbox........................................................... 12
5.1.4 Opportunities in the SWOT analysis of Xbox ........................................................ 13
5.1.5 Threats in the SWOT analysis of Xbox .................................................................. 13
5.2 Case Analysis Evolution of The Xbox Porter’s Five Forces ......................................... 14
5.2.1 Case Analysis Evolution of The Xbox Competitive rivalry ................................... 14
5.2.2 Threat of new Case Analysis Evolution of The Xbox entrants .............................. 15
5.2.3 Threat of substitute products ................................................................................... 15
5.2.4 Bargaining power of suppliers Case Analysis Evolution of The Xbox .................. 15
5.2.5 Case Analysis Evolution of The Xbox Bargaining power of customers ................ 16
5.3 Technology Challenges .................................................................................................. 16
5.3.1 Security Threats ...................................................................................................... 16
5.4 Recommend solutions .................................................................................................... 17
6 Individual Part-2 (Ruven Achhami NP000114) ................................................................... 18
6.1 Selected Product ............................................................................................................. 18
6.2 SWOT analysis of Skype ............................................................................................... 21
 6.2.1 Strength (features) ................................................................................................... 22
6.2.2 Weakness (too many features) ................................................................................ 23
6.2.3 Opportunities (improved it services) ...................................................................... 25
6.2.4 Threats (competitors) .............................................................................................. 25
6.3 Technology challenges ................................................................................................... 27
7 Conclusion ............................................................................................................................ 28
8 References ............................................................................................................................. 29
9 Gantt chart ............................................................................................................................. 31
List of Figure
Figure 1 Information System Strategy ............................................................................................ 5
Figure 2 Flow chart of skype ........................................................................................................ 19
Figure 3 Context Diagram of Skype ............................................................................................. 20
Figure 4 Skype for Business Server Protocol Workloads ............................................................. 21
1 Introduction
Microsoft is involved in developing, licensing and supporting a range of software products and
services catering to different requirements. In 2000 Steve Ballmer was appointed the new CEO of
Microsoft. Bill Gates had met Steve Ballmer at Harvard University before he left. Although there
was some concern over Ballmer’s ability, Microsoft retained its top spot in both business and
personal computer markets. Microsoft’s primary strengths and most of its profits were obtained
from the business side. Although the company recognized that they had a major presence in
consumer markets as technology advances.

Microsoft before 1990 was predominantly a supplier to the hardware producers. That was their
target market. As technology advanced and personal computers become so popular, the bulk of
Microsoft’s revenue was generated from sales to consumers. It was the first software company to
reach $1 Billion in revenues. As more and more versions of Microsoft Windows were launched,
Microsoft captured a higher market share the world’s PC (around 90%).

Project Longhorn in 2001, saw many of Microsoft’s previous operating systems being replaced
starting with Vista. Vista was released to the general public in 2007 and it was the new operating
system. There was many Vista options available catering for different consumers; Home (Basic or
Premium), Ultimate, Business and many more. Microsoft’s core customers, the corporate market
preferred Windows XP as the operating system was fast, stable and secure.

Windows 7 was released in 2009 to replace Vista which secured Microsoft’s lead in the software
market. This was followed by the release of Windows 8 on Oct 2012 which included major changes
to its OS platform and user interface to improve user experience on tablets. Since then Windows
8.1 has been released (October 2013) which contained more improvements.

2 Background
2.1 Details of company
Microsoft is an American multinational computer technology corporation whose story started 4th
April 1975. Formed by Harvard College dropout, Bill Gates and his childhood friend Paul Allen,
Microsoft has now become the largest software company. It is also one of the worthiest companies
in the world.

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Founded in 1975, Microsoft is the leading provider of software, services and solutions to
businesses and consumers worldwide. When people hear the Microsoft name, they may first think
of Windows, Word, Excel or Outlook. Others might recall their Xbox Live session, a recent Skype
interaction, or Bing application on their smartphone. It is fair to say that Microsoft technology is
pervasive within our business and personal lives, so it not surprising to learn that Microsoft’s user
base has been estimated to exceed one billion people.

In addition to managing the infrastructure needed to support a dynamic organization that consists
of over 90 thousand employees, Microsoft IT is the linchpin in ensuring a superlative customer
experience as well. The user depends on the availability and performance of the Microsoft network.

2.1.1 Current scenario

Microsoft Corporation is multinational technology company which is giving day by day new level
of technology services worldwide. It has employed more than 144,106 people. It has over 1 billion
windows users. Over 500 million windows 10 users. over 1.2 billion Microsoft office users. Over
400 million Outlook.com users. Over 3 billion skype minutes a day. Over 669,000 windows store
apps. That the stat of Microsoft. Microsoft has over 71 Products, services and app such as Bing,
Bing Ads, Bing Bar, Bing Images, Bing Maps, Bing News, Bing Search History, Bing Video
Cortana, Docs.com, Linkedin, Microsoft Azure and many more.

2.2 Latest Development

Holoportation: A new type of 3D capture technology that allows high-quality 3D models of
people to be reconstructed, compressed and transmitted anywhere in the world in real-time.

Microsoft Pix: An intelligent camera app that automatically adjusts settings and after-shot
enhancements. It also lets users compare before and after shots, ensuring everyone looks their best.

Skype Translator: An online translator that breaks down language barriers by helping users
communicate in 8 languages for voice calls, and in more than 50 languages while instant
messaging.

Project Premonition: Turns mosquitoes into devices that sample pathogens in the environment.
Collecting and computationally analysing these mosquitoes help to prevent outbreaks of diseases
such as Zika, Ebola, Chikungunya and MERS.

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DiPsy: A digital psychologist presented as a personalized chatbot, who can evaluate, diagnose,
treat and study users’ mental processes through natural conversations.

2.3 Business Model

Business strategy can be known as the course of action or set of decisions which assist the
entrepreneurs in achieving specific business objectives.

Customer Segments: With a variety of services and products, Microsoft targets a range of
consumers that can typically be divided into commercial clients and general consumers.

It primarily offers software and cloud computing solutions through its productivity suite Office
360, email platforms Outlook and Exchange and online calling platform Skype, which are utilized
by both end-users and businesses. Microsoft’s server management, IT support and consulting
services are aimed largely at corporate clients, while its products and services about its mobile
phone and video game platforms target the mass market.

Microsoft also attracts advertising agencies and big brands with its available advertising
opportunities, presented primarily via its MSN portal and Bing search engine, and serves
developers with its suite of development tools.

Value Propositions: Microsoft has established a reputation as a trustworthy provider of software

solutions and is regarded as a market leader. Many of the Company’s products are available free
of charge and can be accessed either via the MSN portal or through the Company’s various apps.
Content housed by Microsoft’s products can also be synced across multiple platforms, including
the Company’s brand of phones.

This compatibility is a big draw for Microsoft, particularly within the business community where
its operating system and suite of Office 360 products are widely considered the tools of choice.
The Company is a trusted source of expertise and support for its consulting customers, while its
advertising partners benefit from the Company’s large user base.

Channels: Much of Microsoft’s products – including Outlook, Office, OneNote, OneDrive and
Skype – are available online via its MSN web portal at www.msn.com. The Company also has
several separate desktops, Apple iOS and Google Play apps for its products.

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Some of the Company’s products must be downloaded and installed directly on to using computers
to be accessed. Many of the Company’s other services – including its consulting and customer
support services – can be accessed via Microsoft’s sales and marketing team.

Customer Relationships: Microsoft’s various customer segments require differing levels of

communication with the Company itself. Its software and hardware products are largely self-
service and do not require any significant personal interaction with sales and marketing
representatives. The provision of enterprise productivity services, however, requires a greater
degree of personal assistance to properly fulfil the individual needs of each client.

Similarly, direct collaboration with Microsoft representatives is necessary for providing consulting
and support solutions and advertising services. Microsoft also interacts directly with its customers
via social networking profiles on Facebook and Twitter.

Key Activities: Microsoft develops, licenses and supports a range of enterprise and consumer
software products and services. This includes operating systems for personal computers, servers
and phones, server applications and management tools, and productivity applications.

The Company also creates and sells hardware products, including PC accessories, mobile phones,
and video games consoles and accessories; and delivers online advertising solutions. Besides,
Microsoft provides ancillary IT consulting and product support services to clients across multiple
sectors.

2.4 Business Strategy

Business strategy can be known as the course of action or set of decisions which assist the
entrepreneurs in achieving specific business objectives.

A business strategy is a set of competitive moves and actions that a business uses to attract
customers, compete successfully, strengthening performance, and achieve organisational goals. It
outlines how business should be carried out to reach the desired ends.

Cloud-first, mobile-first: Intelligent cloud represents one of the solid sources of Microsoft
competitive advantage and Microsoft business strategy places a great emphasis on cloud segment
of the business. ‘Mobile first’ part of this strategy stands for the mobility of experiences and the
technology giant pays a due attention to this direction as well. Nadella’s bet on cloud has paid off

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handsomely. By October 2018, Microsoft surprised Amazon in 12-month cloud revenues.
Specifically, while Microsoft earned USD 26,7 billion revenues, Amazon’s revenues totalled to
only USD 23,4 billion for the same period.

Growing through mergers and acquisitions: Mergers and acquisitions play an important role in
Microsoft business strategy and the multinational technology company engages in mergers and
acquisitions to increase its capabilities, product range and value offering. The list of the most
notable recent acquisitions includes Nokia Corporation’s Devices and Services business for USD
9.4 billion in 2014 and Mojang Synergies AB the Swedish video game developer of the Minecraft
gaming franchise, for USD 2.5 billion.

Focusing on augmented and virtual reality (VR). CEO Satya Nadella has placed augmented
and virtual reality at the core of Microsoft business strategy. It has been noted that “while a
majority of the augmented and virtual reality players are focused on consumer gaming, Microsoft
has spent considerable time and effort defining the potential business use cases for HoloLens.

3 IS and IT strategy
3.1 IS strategy
IS Strategy Triangle being a correlation between Business strategy, Organizational Strategy and
Information Strategy. Whose approach is coordinate is set of actions to meet their corresponding
goals, purpose and objectives. Whose information systems include business, organization and
information and they symbolize how a company needs to align all three of these approaches to use
information systems for the advantage of the company. Below figure shows three correlations are
connected each otherInvalid source specified.:

Figure 1 Information System Strategy

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A company must consider its objectives, market place, organizational culture and business
processes when implementing in information system. Every company can have their own IS
strategy above strategy is mostly follow by many company. Every company has its own IS strategy
but above triangle strategy is mostly follow by many company. Microsoft is one the leading
company which has many products and solutions. There are more than 71 products, services and
apps of Microsoft like MS office, azure, face swap, Skype , internet explorer etc.

There are four keys of IS strategy that Microsoft use whenever the company is on critical Is issues.
These main elements are enough to enable the general manager to evaluate critical IS problems.
the fig is given below of these strategy use by Microsoft :

Table 1IT strategy Table

Microsoft is using this IS strategy because of this below pointInvalid source specified.:

 Investment in systems and IT decisions are based on organizational strategy and user nee
ds
 An approach prevents wasting time on unnecessary operations, especially for users to inte
rpret inappropriate formats of data obtained.
 An approach also guarantees that an organization meets its legal demands so that unneces
sary expenses and reputational risks are avoided
 Innovation, productivity and competitiveness are supported by correctly managed data

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  Information operations are unified, thus contributing completely to organizational goals

There are many business strategies which is part of IS strategy use by MicrosoftInvalid source
specified.:

 Cloud-first, mobile-first
 Growing through mergers and acquisitions
 Focusing on augmented and virtual reality
 Promoting ‘Tech Intensity’
 Conversations as a Platform (CaaP) are the new and improved chat bots
 Augmented and virtual reality isn’t just for gaming
 Microsoft is releasing and fixing products like a modern cloud company

3.2 IT strategy
Basically, IT strategy is a collection of plans outlining how to use or execute technology to fulfill
the organizations IT and company goals. Information technology relates to the technology
necessary to satisfy business needs or company objectives such as hardware, software, networks,
operating systems, databases, etc. (Anon., 2019). IT strategy can be written document providing
information and various variables affecting the investment in and use of technology by the
organization. It is also an iterative method to align IT capabilities with company needs. Microsoft
is one of the leading giant companies which develops more and gives services more than 71
products, services and apps (Anon., 2019). Here comes strategy of Microsoft IT strategy but the
IT strategy of Microsoft cannot be implemented before the corporate strategy of Microsoft is
completed. Corporate strategy is developed is develop upstream and informs strategy. These two
are linked two each other because IT strategy cannot work without corporate strategy (Anon.,
2019).

The corporate is always right as supporting the corporate strategy is the role of the IT approach.
Likewise, the corporate finance approach needs to assist the corporate strategy and likewise the
corporate strategy needs to be supported (Anon., 2019). While the corporate strategy may be
incorrect, in relation to the IT approach it can never be incorrect, as the IT strategy only exists to
promote the corporate strategy. The corporate strategy is developed upstream and informs the IT
strategy below it. Below point show the IT strategy of the Microsoft and how its link with corporate

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strategy which make Microsoft one the best IT strategy of the IT company, the point are given
below (Anon., 2019):

 Microsoft’s corporate strategy will explain when, where, how and with which resources a
company will compete
 Microsoft’s corporate strategy is used by its business units to develop their business unit
strategies.
 This business unit strategies are then broken down to set metrics and targets throughout the
business unit
 The IT team needs to look at the initiatives both the corporate office and business divisions
will roll out to implement the corporate and business unit strategies
 IT needs to then look at their budget/resources and determine the initiatives IT must roll
out to support the corporate and business unit initiatives
 IT must also think about the systems, process and governance changes it needs to make to
ensure the IT initiatives roll out smoothly

Microsoft another IT strategy are:

 Innovation
 Corporate social responsibility
 AI
 Trustworthy company

3.3 IT Tool
Microsoft use different tools and techniques to develop app and devices. Almost 95% people use
windows and Microsoft product or services and it has been one of leading giant company of IT
world. They use different models that help to construct an IT strategy and implement their strategic
plans and achieve a sustained competitive advantage. Different types of Tools Microsoft are using:

 Microsoft office word

Microsoft is using his own tools for documentation which is known as mostly used text
application and it used to create, format, illustrate or edit text.

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 Microsoft excels
Not only others Microsoft itself using this product for commercial establishment. It is used
to compute and use for basic calculations. Without specific software company can input
data and create sheet for basic accounting.

 Microsoft Lync
The lync is Microsoft office bouquet cloud-based software that enables immediate
messaging and interaction online. It enables you to use the lync online scheduler to connect
and share your presentation, text and information with others.

 Microsoft PowerPoint
This the IT tools Microsoft is itself for presentation about proposal or developing product
or developed project

Microsoft office outlook

It’s same like Gmail but its product of the Microsoft as well as Microsoft itself using to
spend emails and manage. It enables to corporate, interact and handle emails.

 Competitive profile matrix

The competitive profile matrix is strategic assessment that enables you to compare your
business with your rivals to show your relative and strengths and weaknesses.

 SWOT analysis
This is done to found strength, weakness, opportunity and threats.

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4 Critical Evaluation
Microsoft was established on 1975, 44 years ago. Microsoft is ruling in the computer world with
his various products. Microsoft is credited as revolution of the computer world when it launches
windows. Its product as has ruling all over the world like Microsoft office, Skype etc. Microsoft
business model has been linking to the IS strategy and IT strategy. The business strategy for
Microsoft is to facilitate everything that increase profitability providing maximum satisfaction to
its stakeholders. Information Strategy is basically a collection of software, hardware, procedures,
people which is collectively working together. Whole Microsoft worker work hard to develop IS
and IT strategy to make customer satisfy with their products and services. They are using their
own products and services for webs services, products and app for business purpose or
organization product.

5 Individual Part-1 (Roshan Kafle NP000113)

5.1 Selected Product
Xbox is a gaming console brand produced and owned by Microsoft. The game console is capable
of connecting to a television or other display media. Xbox provides realistic graphics for games.
The online gaming service in Xbox gave Microsoft an early foothold in the online gaming market
and made it a strong competitor against other gaming consoles. Consoles in the Xbox line include
Xbox, Xbox 360 and Xbox One.

The first of the series, the Xbox console, was developer-friendly and could easily port personal
computer games. It had an Ethernet port made for speedy online gaming and four controller ports

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for multiplayer gaming. It also came with a hard drive for saving games and game content, a DVD
player and multi-signal audio/video connections for easy connection to display media and home
theatre systems. The controller pad had analog sticks, directional pads, and six action buttons and
was bulky compared to other game controllers at the time.

Xbox 360 had some similar features to its predecessor but had higher power concerning CPU,
memory, and graphics. Unlike out-of-order execution in Xbox, Xbox 360 made use of in-order
execution to reduce the CPU size, complexity and power demands. The motion-sensing peripheral
Kinect was introduced, which allowed gamers to play using physical motions rather than using the
controllers. Xbox 360 also introduced the non-subscription service called Xbox Live Free. Another
new feature that Xbox 360 introduced was the capability of watching movies with the help of the
Internet.

5.1.1 SWOT Analysis of XBOX

SWOT analysis is a vital strategic planning tool that can be used by Xbox managers to do a
situational analysis of the firm. It is a handy technique to map out the present Strengths (S),
Weakness (W), Opportunities (O) & Threats (T) Xbox is facing in its current business
environment.

The Xbox is one of the leading firms in its industry. Xbox maintains its dominant position in
market by critically analysing and reviewing the SWOT analysis. SWOT analysis an immensely
interactive process and requires effective coordination among various departments within the
company such as – marketing, finance, operations, management information systems and strategic
planning.

The SWOT Analysis framework enables an organization to identify the internal strategic factors
such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats.
It leads to a 2X2 matrix – also known as SWOT Matrix.

5.1.2 Strengths in the SWOT analysis of Xbox

2nd highest market share – Xbox has the second-highest market share in the console market and
it is right behind Sony’s PlayStation. Xbox’s customers love the console and many swear that
Xbox is better than Playstation.

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Exclusive games are brilliant – Some of the exclusive games of Xbox such as Gears of War
series and Halo involve the most brilliant gameplay ever. They are so popular that
many people buy Xbox just to play these exclusive games.

Microsoft Kinect – Microsoft Kinect is the motion-sensing addition to Xbox and you can play
multiple games with the Kinect. Many of Xbox’s customers are mainly sticking with the brand due
to support for Kinect

Deep pockets – As Xbox comes from the house of Microsoft, it is safe to say that Xbox has deep
pockets and can survive a price war for a long time.

High Resolution – Xbox one which is the latest Xbox has excellent resolution and can show its
power even on a 4K tv with ultra-high resolution and yet the games run smooth.

Larger Controller – Several gamers feel that the controller of an Xbox is its selling point mainly
because the controller is large and fits the hand perfectly.

Competitive pricing – Xbox has consistently sold its product at competitive pricing. It is priced
below the Playstation but above the Nintendo. Thus, its pricing is its strength as the first-time
gamers might prefer an Xbox over a PlayStation.

5.1.3 Weaknesses in the SWOT analysis of Xbox

Always behind PlayStation sales – A big disadvantage for Xbox is that it is always behind
PlayStation in its overall sales and has rarely taken over the number 1 spot. There are many reasons
for this which will be discussed in the SWOT analysis of PlayStation. However, although it is
consistently at number 2 spot, a company like Microsoft will always want to be at number 1 spot
in a technology segment.

Nintendo catching up – Nintendo is in direct competition with Xbox because of its Wii gaming
way which is very near to that of Kinect and many Kinect customers who love interactive gaming
is moving over to the Wii. Pricing wise too Nintendo is near. Thus, while Microsoft wants to race
ahead of PlayStation, Nintendo is taking over customers which Microsoft is leaving behind.

Price of Games is high – A major problem for both consoles Playstation and Xbox is that the
amount of games is very high on a console as compared to desktop or online. As a result, many
consumers buy lesser games or they buy it from the resale business by saving money.

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Frequent Upgrades means loss of customer – We looked at the recent sales of iPhone 8 and
iPhone X which has seen a drop in the sale because of the too frequent upgrades. The same
phenomenon is observed in the console market where every 2-3 year the console changes and the
gamers have to adapt to the new console in the market and buy new games for it.

5.1.4 Opportunities in the SWOT analysis of Xbox

Virtual Reality – The number 1 opportunity for Xbox is virtual reality where Occulus rift from
Facebook is coming up fast. Although the controllers of Oculus rift were initially from Microsoft,
Oculus soon started manufacturing its own controllers which were unique. Virtual reality is the
future of gaming and social interactions and Microsoft needs to catch up soon via the Xbox.

Online Gaming – Online gaming is catching up in a big way. Even small developers are coming
up with genius games and Xbox should capitalize on this heavy penetration of the Internet to come
up with its arcade-type online games which customers will be happy to play.

Exclusive Games – A reason that PlayStation is ahead of Xbox is because of the many Exclusive
games launched on the PlayStation such as God of war, Uncharted and others. Microsoft has Halo
and Gears of war but there are limited games which are a platform seller for the Xbox brand.

Lowering prices of games – A strategy which can help Xbox in its console sales is to lower the
selling price of games especially in developing markets where it is exporting the games. This will
help Xbox increase advantage over its competitors where the cost of 10 games is sometimes equal
to the cost of the whole console. Thus, lowering the price of games can be a big opportunity in
the SWOT analysis of Xbox.

Subscription services – Steam, which is also a gaming service and known for its games like Half-
Life, has started subscription services and games on-demand services. It also has time to time sales
to push the games in the market. Microsoft can launch something similar and at the same time
push game development so that its Xbox sells more and sells wider.

5.1.5 Threats in the SWOT analysis of Xbox

Dropping console sales – One of the greatest threats to Xbox is the dropping sale of consoles. The
overall console market is dropping in the number of sales and on top of it, Microsoft is just 50%
of the PlayStation sales.

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Constant competition – Xbox has been in constant competition with Playstation which affects
the bottom line of the company as well as the top line. Microsoft is not able to break the shackles
and come number 1. It is far behind PlayStation and Nintendo could soon catch up. Thus, the
market is very dynamic and Xbox needs to reinvent itself from time to time.

Desktop gaming is cheaper – Many console gamers have switched back to Desktop gaming
because of a simple reason – Desktops don’t get upgraded so frequently like consoles and you can
change the operating system as well as the specs as per your liking to have the best practice.

Recommendation

5.2 Case Analysis Evolution of The Xbox Porter’s Five Forces

Case Analysis Evolution of The Xbox Porter five forces shows the competing environment of an
industry. It is a strategic tool that is used to avoid or reduce the risk of losing the competitive edge
that the organization has and to ensure the profitability of the products in the long run. The
company holds its idea closely as it allows them to orientate its innovation in terms of choices
regarding investment and strategies. Within the industry the businesses profitability is dependent
upon the following forces:

 Competitive rivalry
 Threats of new entrants
 Threats of substitute
 Bargaining power of suppliers
 Bargaining power of customers

5.2.1 Case Analysis Evolution of The Xbox Competitive rivalry

The race among the firms helps in identifying the lucrativeness of an industry where companies
are competing hard to maintain their power within the industry. The Case Analysis Evolution of
The Xbox competition is moreover based on diversity, the development within the sector and the
barriers related to the entrance in the market. The competitive rivalry is the analysis of the brands
and the product, its strengths, and weakness along with the strategies, competitors and the share in
the market.

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5.2.2 Threat of new Case Analysis Evolution of The Xbox entrants
It is in favor of the organizations that exist in the market to create barriers for the new entrants to
prevent them from entering into the industry. The organizations could be the new companies or
companies that are planning to diversify itself in the market. The barriers can be both industrial
also legal. Apart from this the size and the character of the companies that are already operating
in the market also play an important. Furthermore, the cost related to the entry, access to raw
materials, barriers related to culture and technical standards also play a major role and can affect
the decision of the new entrants in the market.

5.2.3 Threat of substitute products

The Case Analysis Evolution of The Xbox substitute products are any alternatives that are
available in the market at comparatively better prices. Such products prevail due to technological
and innovative advancement. Due to which the products being produced by the companies that are
already existing in the market and is using the same technology are then replaced by the other
company’s products that are comparatively better in terms of price and quality and are being
produced from sectors with significant profits. The substitute products are dangerous as the
companies are under constant threat of being replaced.

High threat of substitute leads to low profitability as it limits the industry profits by placing a price
ceiling due to the fear of being substituted by other product. Apart from this it also affects the
growth potentials of the industry as a whole but reducing the profitability margins.

5.2.4 Bargaining power of suppliers Case Analysis Evolution of The Xbox

Powerful suppliers possess more power to capture significant value for themselves by demanding
high prices while limiting the quality and the quantity of the product or services or by transferring
the cost on the participant of the industry. Many conditions imposed by the suppliers generally
include the increase in price while compromising the quality and quantity.

Bargaining power of a supplier in the market is strong if:

 It is more concentrated than the industry it is selling to.

 It is not heavily relying on the industry for its profits
 If the participants in the industry have to incur high cost for switching suppliers or the firms
are located adjacent to the suppliers manufacturing facilities.

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  The product being offered by the suppliers are highly differentiated.
 And when there is no close substitute available for the products being supplied by the
suppliers.

5.2.5 Case Analysis Evolution of The Xbox Bargaining power of customers

The buyers having strong bargaining power can highly influence the profitability of the suppliers
operating in the market by imposing condition that is not much favourable for the suppliers in
terms of price, quality or service. Therefore, choosing clients often become crucial for the
organizations to avoid the situation of being highly depended on the buyers. The level of interest
and concentration of buyers toward the product gives them more or less power.

Powerful buyers could flip the side of the powerful supplies by forcing the prices to move
downwards and by demanding high quality and services by creating a competition between the
participants in the industry based on price and quantity. Case Analysis Evolution of The Xbox
Customer is deemed strong if they contain negotiating leverage specifically if the industry is
sensitive to price, the buyers can pressure suppliers for further price reductions.

The customer is assumed to have strong buying power in case:

 If the number of buyers is limited or each of the buyers purchases a large quantity relative
to the size of the suppliers.
 The products in the industry are standardized or are undifferentiated.
 The cost of switching is comparatively low.

5.3 Technology Challenges

5.3.1 Security Threats
One Xbox exploits that you need to be aware of first came to light in. At that time, hackers were
discovered using lists of gamer tags, accumulated during live games, to search Google for social
media accounts belonging to those players. The hackers hoped to discover those users’ Windows
Live email address - and possibly even a Windows Live ID.

Hackers would then return to Xbox.com and type in the newly-found email address and a random
password. If they received a message indicating the account does not exist, they would move to

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another email address. If they received a message that the email address or password was incorrect,
the hackers would brute force attack the account with a script of dictionary passwords."

5.4 Recommend solutions

The first thing that Xbox users must consider, is whether the console has recently received security
updates. When a new game is purchased, a security update prompt will be offered. Users should
always download these security patches, as they are designed to fix newly discovered
vulnerabilities that could be exploited by hackers. This is an advantage of associating an Xbox
with a Live account, even if no additional purchases are made.

That said, if users are playing old games on an Xbox live account - or have previously decided to
save time by dismissing a security update - this could lead to an outdated Xbox system that is
vulnerable to attacks.

More recommendation is as below:

 Don’t share your Windows Live email address or ID online

 Password protect Xbox accounts to stop them being compromised
 Profile Awareness
 Visit Xbox Customer service

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6 Individual Part-2 (Ruven Achhami NP000114)
6.1 Selected Product
Microsoft corporation is one biggest IT company of the world which provides various
services, software and android and IOS app like microsoft office, asp.net skype etc. skpe is a
app which is used for video calling, audio calling, between computer as well as it can be used
on varipous other devices mobile, tablets (Anon., 2019). It also provide video congerence
calls. Micrisoft launch thuis app 15 years ago on 29 August 2003 founded by estonian
developers Zahti Heinla, Priit Kasesalu and Jaan Tallinn, Danish developer Janus Friis and
Sweden’s Niklas Zennstrom (Anon., 2019). Skype actually stands for “Sky Peer to Peer.”
Skype has very easier for many people to call or text or even video conference call. Every
year more than millions of user registered from worldwide. Till today there are more than 1.55
billion user on skype. There more than 4 millions daily active user on skye and it has been
downloded more than billion times (Anon., 2019).

People use skye beccuae man other different features. We can call regular landline phones as
well as get real telephone number. If there is network probl;em it autiomaticvally reminded,
it can be used any paerts ofthw orld , skpe app let us manage multipkle user which very useful
for business (Anon., 2019). Recording calls, groups calls as well as sharing files images
location video clips is another facilities provided by skype. It has been making more easier
fior international calls on almost free of cost but skype is Voip serrvice so it takes some mount
of money to call landline or celluer phones but it have provuided eith good quality (Anon.,
2019). Skpe also has premium plan with additional featuires as well as strong business
sloutions that are now mostly cloud based, with complex and sophisticated back-end engines,
able to fuel even big organizations. Another latest feature of Skype is translating from one
language to another which helps to talk in different language of any part of the world. So
Skype is has best features as well as services which is very resourceful to every user from
businessman to working person as well to that parent or families whose one of their family
member live very far from them (Anon., 2019).

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Figure 2 Flow chart of skype

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Figure 3 Context Diagram of Skype

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Figure 4 Skype for Business Server Protocol Workloads

6.2 SWOT analysis of Skype

SWOT analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate
a company's competitive position and to develop strategic planning. SWOT analysis assesses
internal and external factors, as well as current and future potential (Anon., 2019).

Strengths: what is the advantage and benefits we can have?

Weakness: what are the things we can improve or avoid or loose sale in our company?

Opportunities: what are the things we can grab?

Threat: what is the problem we should avoid, what are competitors doing to compete?

Strength and weakness are inner or internal factor of the company which can be change or control
like team, location, property and it is managed by workers, administrator of the company.
Opportunities and threats are outer or external factors of the company. This help to know what’s

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going on market or what are new products. It helps to take advantage of opportunities and protect
from threat. Skype is using SWOT analysis technique to know the situation of the company inside
or outside (Anon., 2019).

Porters five forces is very important at business world or any company. So, there will be analysis
recommendations according Porter’s five forces and they are given below:

 Competition in the industry

 Potential of new entrants into the industry
 Power of suppliers
 Power of customers
 Threat of substitute products

6.2.1 Strength (features)

Skype is one the best video calling app which has many features which can give upper hand over
its competitors. It became very popular with extra characteristics including instant messaging, file
transfer and video conferencing. It is available more than 40 language and supported almost every
country and everywhere of the world. Text, voice and video from Skype make it easy to share
experiences with individuals. Here are some best features of Skype which can be count as strength
of this app (Anon., 2019):

 Robust features:
You can use the software to call text messages, chat, video call or voice. Users are also
allowed to exchange internet video and text-based messages as well as exchange online
records. Skype has a lot to give via the instant messaging platform to its clients (Anon.,
2019).

 Service quality:
Skype is increasing in popularity mainly due to the quality of the calls and messaging.
Many companies use Skype to build an ecosystem where all their stakeholders have a
common platform to communicate with each other (Anon., 2019).

 Payment model:

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 Skype operates on a subscription that enables unlimited use for a set period of time.
Monthly, quarterly, semi-annual and annual subscription choices are accessible.

 Huge base of customers:

At present, Skype has nearly 600 million registered customers. Many companies use Skype
as the formal communication, video conference and meeting platform

 Market Leader:
Skype is the leading VoIP services market in the globe as well as it backed up by biggest
companies Microsoft.

Recommendations
According porter’s five forces making more flexible and doing video calls and lesser
bandwidth. Another bad us people saved our name or something it may show on Skype
also this need to change. Another main thing is You can still share your profile if you opt
out and invite others on Skype to connect with you. These are features we need to change
or revise.

6.2.2 Weakness (too many features)

Even it is the best app for video calling or texting it still have many weaknesses.
Weaknesses are used to refer to fields where improvement is needed by company or brand.
Some weaknesses are given below (Anon., 2019):

 Building a new price brand:

Skype was initially a free tool and the word-free associate of most customers,
Skype. With payment coming into the picture positioning the brand won't be an
simple task.

 Lowered barriers to entry:

Skype was initially a free service and so many users registered to use it for all kinds
of purposes such as dating and sexual solicitation. The lowering of entry obstacles
will now result in a weakness (Anon., 2019).

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 Issues of security:
Skype has all kinds of customers from all over the globe. Many use Skype for
fraudulent transactions and underhand companies. This generates numerous safety
problems for the real user who may be the target of such activities (Anon., 2019).

 Limits allegiance to the brand:

 Today the market is packed with all sorts of messaging applications and numbers
have grown with smartphones. So, having loyal clients will be a challenge for
Skype.

Recommendations
According to porters five forces company need focus on the weakness to overcome
from weakness and make Skype more reliable and fuller of security, increasing
barriers.

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6.2.3 Opportunities (improved it services)
Opportunities refer to those environmental factors that surround the company on which it can
capitalize to boost its yields. There are lots of opportunities to improved services of the product.
Some opportunities are given below (Anon., 2019):

 The increasing popularity of smartphones:

This not only improves the scope of activities, but also the potential for messaging software
income tyres.

 The culture of telecommuting and remote work:

Many companies in the information technology industry are encouraging ether staff to
operate from home offices. This would improve their dependence on instruments like
Skype for formal communication (Anon., 2019).

 Integrating with other Microsoft tools:

If Skype can be incorporated into instruments like X Box, Outlook, Kinect edit can open a
whole fresh range of avenues for Skype to source company from.

 Increased scalability:
With the use of smartphones and other technologies increasing applications, popularity has
begun to expand and distances have decreased. This provides a chance for businesses like
Skype to expand their activities (Anon., 2019).

Recommendations
According porters five Forces, Company need to grab every opportunity to be better
products and to be on the top among the competitors.

6.2.4 Threats (competitors)

Threats can affect the product. There are many same products to replace the product with
best features. Some threats ate given below (Anon., 2019):
 Competition:

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 Skype is facing a lot of competition from both experienced and new players today.
Whatsapp, Viber, Tango and Talk are some of its greatest rivals.

 Technological advances:
Instant messaging technology is evolving at an alarming pace with fresh updates
coming up every day. It can be a expensive affair to keep up with these
modifications (Anon., 2019).

 Restrictions:
Many nations have placed constraints on the use of VoIP calling. Some of them
include Dubai, Qatar, the UAE, Korea, and Libya. This can hinder growth
opportunities (Anon., 2019).

 Security Issues:
Instant messaging apps present severe safety threats to users from pilfering data to
cyber bullying. Such platforms need to have a powerful security function that can
be expensive.

 Dependency on IT infrastructure:
The quality of service of an instant messaging instrument relies mainly on the
region's bandwidth and velocity. These may differ from location to location, which
may in turn generate discontent (Anon., 2019).

Recommendations
According to porter five forces, company need to grab oppournity to overcome
threats. Company need to focus developing with best features than others similar
app.

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6.3 Technology challenges
There are lots of challenges on the product. Debugging, resource management, cloud computing,
security threats are few challenges but security threat is main challenges for this product.

Security threat

Security issues has been main issues today’s technology world. Many people’s social media, ios
account has been hacked and leaked many confidential things or information and pictures. Threats
to computer security are relentlessly inventive. Masters of disguise and manipulation, these threats
are constantly evolving to discover new methods to annoy, steal and damage. Arm yourself with
data and resources to protect against complicated and increasing computer security threats and
remain secure online. Here are some security threats and they are given below (Anon., 2019):

 Computer viruses
 Spyware threats
 Hackers and predators
 Phishing

Spyware threats

It’s one of the most common threats which can easily affect our device and hard to identify. A
severe computer security threat, spyware is any program that tracks your internet operations or
installs programs for profit without your permission or to capture private data. We've accumulated
a wealth of expertise that will assist you fight threats to spyware and remain secure online. It can
steal any type of information from organization or person (Anon., 2019).

Phishing

Phishers try to steal sensitive economic or personal data through fraudulent emails or instant
messages (Anon., 2019). Phishing attacks are some of the most effective techniques for cyber
criminals seeking to remove a data breach.

Solution

 Some solution for security threats are given below:

 Install Anti-Virus Software

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  sure, the anti-virus software is up to date
 Develop a policy on information security
 Restrict end-user access to systems
 Implement a vulnerability management program.
 Downloads on the Internet

7 Conclusion
Microsoft is one of the leading companies in the field of IT and technology. This company is
equipped with full resources with IS and IT infrastructure with proper business model and business
strategies. It has made a positive impact in the life of people. Also, it has provided job facilities to
the people who are curious in the technology field. During this whole project we get learn about
Microsoft, how it works through research, journals etc. this project is one of the best projects which
helps to know better of company and products.

Apart from this, this research report helps us to know about IS and IT strategy practically. We have
done vast research in order to gather data and information about Microsoft. We get the chance to
know the SWOT of the product of Microsoft. It is very much challenging to complete this project.

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8 References
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9 Gantt Chart

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Appendix

Workload Matrix
Name Group Part Individual Signature
Part
Roshan Kafle (NP000113) 50% 100%
Ruven Achhami (NP000114) 50% 100%

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