Case Scenario: Competing with Microsoft

Break up into groups of three to five people, and discuss the following scenario. Appoint one group member as a spokesperson who will communicate your findings to the class. You are a group of managers and software engineers at a small start-up. You have developed a revolutionary new operating system for personal computers that offers distinct advantages over Microsoft's Windows operating system: it takes up less memory space on the hard drive of a personal computer; it takes full advantage of the power of the personal computer's microprocessor and, in theory, can run software applications much faster than Windows; it is much easier to install and use than Windows; and it responds to voice instructions with an accuracy of 99.9%, in addition to input from a keyboard or mouse. The operating system is the only product offering that your company has produced. Complete the following exercises:

1. Analyze the competitive structure of the market for personal computer operating systems. On the basis of this analysis, identify what factors might inhibit adoption of your operating system by customers.

2. Can you think of a strategy that your company might pursue, either alone or in conjunction with other enterprises, to "beat Microsoft"? What will it take to execute that strategy successfully?

Article File 2

Find an example of an industry that has become more competitive in recent years. Identify the reasons for the increase in competitive pressure.

Strategic Management Project: Module 2

This module requires you to analyze the industry environment in which your company is based using the information you have already gathered:

1. Apply the five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry?

2. Are any changes taking place in the macroenvironment that might have an impact, positive or negative, on the industry in which your company is based? If so, what are these changes, and how might they affect the industry?

3. Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across these strategic groups?

4. How dynamic is the industry in which your company is based? Is there any evidence that innovation is reshaping competition or has done so in the recent past?

5. In what stage of its life cycle is the industry in which your company is based? What are the implications of this for the intensity of competition both now and in the future?

6. Is your company based in an industry that is becoming more global? If so, what are the implications of this change for competitive intensity?

7. Analyze the impact of national context as it pertains to the industry in which your company is based. Does national context help or hinder your company in achieving a competitive advantage in the global marketplace?