Key Economic Factors of Microsoft Corporation Essay

As a dominator in both the PC operating system and office suite markets, Microsoft Corporation expose themselves to the cloud-based computing model presents execution and competitive risks. They are transitioning to a computing environment characterized by cloud-based services used with smart client devices. Their competitors are rapidly developing and deploying cloud-based services for consumers and business customers. The pricing and delivery models are evolving, and cause economic growth to move slower. They may not be able to adequately protect their intellectual property rights. Protecting their global intellectual property rights and combating unlicensed copying and use of software and other intellectual property is difficult. While piracy adversely affects U.S. revenue, the impact on revenue from outside the U.S. is more significant, particularly in countries where laws are less protective of intellectual property rights. As a result, their revenue in these markets likely will grow slower than the underlying PC market. Similarly, the absence of harmonized patent laws makes it more difficult to ensure consistent respect for patent rights. Throughout the world, they actively educate consumers about the benefits of licensing genuine products and obtaining indemnification benefits for intellectual property risks, and they educate lawmakers about the advantages of a business climate where intellectual property rights are protected. However, continued educational and enforcement efforts may fail to enhance revenue. Reductions in the legal protection for software intellectual property rights could adversely affect revenue. In conclusion, the economic growth is the main key factor for Microsoft Corporation and this reason likely to continue due to the globally affect issue on the intellectual property rights and unlicensed copying and use of software worldwide. The company in its life cycle Microsoft Corporation is at the stages of maturity, as they are in the market of computing for a few decades. This stage will remain as they are a dominator in the PC operating system and office suite markets. They are devoting significant resources to develop and deploy their own competing cloud-based software plus services strategies. While they have their own expertise, investments in infrastructure, and the breadth of their  cloud-based services provides them with a strong foundation to compete and to remain as a strong player in the market. The five or six most important factors for success in this business In order to success, there is a few factors in Microsoft Corporation including as follow: continuing to innovate and bring to market compelling cloud-based experiences that generate increasing traffic and market share; maintaining the utility, compatibility, and performance of our cloud-based services on the growing array of computing devices, including smartphones, handheld computers, netbooks, tablets, and television set top devices; and continuing to enhance the attractiveness of our cloud platforms to third-party developers. continuing to make significant investments in research, development, and marketing for new products, services, and technologies, including the Windows PC operating system, the Microsoft Office system, Bing, Windows Phone, Windows Server, Zune, Windows Live, the Windows Azure Services platform and other cloud-based services offerings, and Xbox 360. To create competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones, and digital music players. We also offer vertically-integrated hardware and software products This company stand with respect to these factors? Microsoft Corporation will stand with respect to these factors with the help of talented employee. As their business depends on the ability to attract and retain talented employees. Their business is based on successfully attracting and retaining talented employees. The market for highly skilled workers and leaders in the industry is extremely competitive. They are limited in their ability to recruit internationally by restrictive domestic immigration laws. If they are less successful in their recruiting efforts, or if they are unable to retain key employees, their ability to develop and  deliver successful products and services may be adversely affected. Effective succession planning is also important to their long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder their strategic planning and execution. Four key business risks related to client’s business and industry. They may not be able to adequately protect their intellectual property rights. Protecting their global intellectual property rights and combating unlicensed copying and use of software and other intellectual property is difficult. While piracy adversely affects U.S. revenue, the impact on revenue from outside the U.S. is more significant, particularly in countries where laws are less protective of intellectual property rights Third parties may claim we infringe their intellectual property rights. Due to the claiming, Microsoft has to stop selling or redesign affected products, or pay damages to satisfy indemnification commitments with their customers. They may not be able to protect their source code from copying if there is an unauthorized disclosure of source code. Source code, the detailed program commands for their operating systems and other software programs.