Microsoft/Intuit Synergies
There is a great deal of synergy between the Microsoft and Intuit that would be beneficial for Microsoft if an acquisition were to take place. Intuit’s position in the personal finance market would lend a considerable benefit to Microsoft given their difficulty in that market. Microsoft would also be able to take advantage of the similarity in their products and use their considerable marketing advantages to enhance the revenue created by Intuit. In 1994, Bill Gates envisioned an emerging future market as an online marketplace to handle consumer needs. In order for Microsoft to develop its capability to control its own destiny in online entertainment and commerce, it needed to acquire additional core
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It would be important for Microsoft to identify the resources from Intuit necessary to maintain their advantage in the market place. This may mean integrating some high level managers and software developers from Intuit and allowing them access with marketing arm of Microsoft in order to gain an even greater revenue enhancement.
In order for Microsoft to be able to reach the goals set by Bill Gates, they must use their considerable resources efficiently to create a place in each market for the online consumer. If they wish to produce and offer online services such as electronic mail, information data bases, personal finance management, video on demand, and electronic commerce, then acquiring firms already specialized in at least some of these areas is the most efficient way to do so. Intuit’s products align with Microsoft’s without significant overlap such that the combined firms would provide a handsome horizontally integrated suite of products with prime market share positions including word processing (49% market share), spreadsheet (48% market share), tax preparation, accounting, banking, and bill paying which would all open up the prospect of continued online grazing by the user leading to repeat sales to Microsoft’s video on demand and future entertainment market. The larger objective would be to capture the user in a web to conduct direct financial transactions over the
The time is now 1995; the internet is slowly evolving, and just as the company survived the arrival of television and other technology so it must with the internet. Convinced the internet will have
This memo will discuss ways that technology can be used to improve this organization’s performance. Additionally, it will consider the optimal methods for expanding the business’s online presence to include online sales. This will include information on how to incorporate intelligent systems and security features to guarantee that customers’ interaction with the new system will be positive. This memo will also analyze this business’s current and anticipated technology and information systems and provide option for other technologies or information systems that will be beneficial for the company. In discussing these options, information will be included to show how the options will advance or improve the business and enhance our customers’ experience.
From the case narrative, it is clear that Bpm, being a small company, is facing a serious challenge in making the decision on whether to focus on entering the US CRM market. Apparently, the CRM market, with its headquarters now in Boston, seems highly promising for any firm that intends to go global. Currently, entering the US market, although seemingly lucrative, is a difficult endeavor considering that the US market is highly dominated by tech giants such as Oracle, Microsoft, and Salesforce. To succeed in the market, Katherine Kostereva, the company CEO notes that she must dig deep into the company’s financial kit since a successful entry will require the company to cope with the looming competition from established companies. Kostereva is interested in industry that is dominated by exceptionally performing companies such as Microsoft and Oracle. She has to weigh sides and decide wisely since the possibilities of emerging competitive enough are slim. These rivals have enough resources to engage the company in unfair competition and eventually eject it out ruthlessly.
Microsoft, a key figure in the technology industry, presents many key products and services that help the technology industry grow to where it has gotten. Microsoft is a corporation that is the NASDAQ market. The company provides products and services in the technology industry. The products highlighted for the 2015 fiscal year for Microsoft were the Surface family, Microsoft Office 365, and Xbox console to name a few. Microsoft has a retail sector that have both online and in store locations, with addition to business to business commerce. In the SEC 10-K analysis for the fiscal year ending on June 30, 2015, Microsoft includes key financial features to include nonmanufacturing (selling and administrative expenses) to go along with the
The more you learn about the competing product and your business partner may allow you to focus on adding new additions to your product. Furthermore, by learning more about the Microsoft product, through your
A decade ago, America has witnessed its biggest merger of their history when AOL and Time Warner merged for an all stock deal with a combine value of $ 350 billion which also created the world’s largest media and Communication Company, but today I want to re-examine this ill-fated deal and try to explore what went wrong. In an initial statement about this merger and probabilities of new company it was stated that this merger will lead to a speedy development and growth for all its businesses. It will not only provide AOL a new broadband interactive platform, but the companies can also grow their revenue through cross marketing from movies, music, and internet to telephone.
This paper will follow a case study regarding the company Intuit, called Conspiracy of Change at Intuit. Intuit was a successful software company that enjoyed an 80 percent market share in each of its three product lines; it was one of the few companies still left that directly competed with Microsoft and still emerged on top (Jick & Peiperl, 2003, p.5). However with the increasing popularity of the internet it recognized that it needed to innovate in order to still remain relevant, “avoiding a downward spiral meant facing up to the Net, which had huge implications for Intuit’s strategy” (Jick et al., 2003, p.6). They decided to embrace this new technology and change the way the company
Growing businesses face many risks and uncertainties, and Microsoft is not the exception. With such intense competition, Microsoft continues to innovate to maintain current. Along with competition, Microsoft face geographical and product challenges. Altering their products to meet government regulations only reduces attractiveness to their products whole increasing production cost. Almost everything is a give and take. Constant risks need to be taken with hope that the outcome drives sales and customer satisfaction. Microsoft takes great
Currently TapNet has been funded by the resources from it Board of Director's. In order to truly develop a leading application site for the trade association, TapNet will require a tremendous infusion of additional operating capital. This capital will allow the development of new software technology, and provide the extensive promotional campaign that will be needed to accompany the site. Although the site could continue to be funded by the directors, there is tremendous opportunity for risk and profit sharing. Both the financial markets, as well as the American economy recognize the value of being able to build and service an “eCommunity” based on industry focus. Therefore, TapNet proposes to reform itself into a publicly held corporation, and reach out to these financial markets for capital required to become the leading online Resource for the Trade Association.
Conversely, Amazon has branched out from its dominance of the book domain to the cloud computing arena while strengthening its profitability by partnering with retailers offering everything from jewelry to stand mixers. Microsoft, on the other hand, continues to strengthen its market dominance in the home computing and business computing worlds with its software while moving into Google’s prior domain with its introduction of Bing.com, which provides users with a more refined search engine than Google, in an attempt to sell advertising to increase its own market share. These bleed-over moves between and among the companies have led each of them to expand into new and promising markets while continuing to play to their strengths.
There have been many arguments and issues that have been raised with the controversy over Microsoft and the U.S. Department of Justice’s claim against Microsoft and its founder Bill Gates of monopolistic practices in bundling its internet browser “Internet Explorer” into its popular Windows computer operating system. By doing this, Microsoft would effectively crush its competitors (it’s main rival being Netscape Navigator), and acquire a monopoly over the software that people use to access the Internet.
While the server end of the financial systems are could be handled by strategic technology partner like Fiserv, the client end of Fiserv’s virtual banking system depended on third party solutions provided by web-browser development companies, like Netscape and Microsoft whose products were the dominant browsers, Netscape Browser and MS Internet Explorer, holding 24.68% and 75.31% of browser market share respectively (WebSideStory n.d.). Thus allowing Nexity to completely eliminate the cost of client-end development and pre-deploy their client-end to almost any computer which was used during 1999 to roam the internet, making Microsoft and Netscape a strategic partner as well.
We think that Microsoft decided to defer a portion of its revenues in fiscal 1996 because that decision came at a time when they had an enormous spurt growth in revenues, which suggested Microsoft’s decision to hold back revenues was to a certain extent to “slow down” the company’s revenue growth. The decision to hold back revenue had the effect of lowering reported revenue growth in the first quarter of 1996 from 88% to 64%, and increasing revenue growth in the first quarter of 1997 from 4% to 15%. The first quarter of 1997 signified the lowest quarterly revenue growth in the Microsoft’s history. While the timing of the company’s decision to defer revenues appears particularly opportune, the introduction of Windows 95 to the market provides a legitimate reason for the decision.
Analysts predict that Microsoft has a chance to compete with Salesforce by developing merely an acceptable on-demand CRM product, because of the average customer's already-established familiarity with Microsoft applications. Also, Microsoft plans to offer their product at half the price of Salesforce.com, using a tactic they have employed with great effect in other marketplaces to pressure their competitors. Salesforce.com still has plenty of catching up to do to reach the size and market share of their larger competitors. As of 2007, SAP's CRM market share was 25.7 percent, compared to only 7 percent for Salesforce.com. IBM's customer base includes 9,000 software companies that run their applications on their software and that are likelier to choose a solution offered by IBM over Salesforce.com.
Business of different sizes among all major and minor industries continue to enter Electronic Commerce. Digital marketplaces have already torn down the walls within and between companies, bringing together buyers and sellers in one interoperable community (Bezos, 1995), (Omidyar, 1995).