Microsoft Case Study Blue Group June 22, 2001

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Microsoft Case StudyBlue GroupJune 22, 2001
Executive Development Program Team Blue
Members Michelle Sheardown-Tanzos Bell
Canada Sav Giovanniello ATT Aime
Lord ATT Dwayne DeJong Lucent James
Yang Nortel Paul Cohen Celestica Doug
Moore Celestica Karen Moss Bell
Canada Geoff Lyons Bell Canada
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Microsoft Case StudyBlue GroupBusiness
Regulatory Assumptions

• Business regulatory assumptions
• The department of justice ruling will be
  favorable to Microsoft and will not impact its
  existing and future business

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Microsoft Case StudyBlue GroupIndustry
Competitive Assumptions

• Industry assumptions
• There is a void in the transmission protocol
  market with the advent of new technologies and
  the limits of TCP/IP
• BDU Content partnerships will be critical to
  any industry success
• Competitive assumptions
• There is an unlimited global marketplace with no
  ceiling for a new, technologically inclusive
  transmission protocol
• AOL/Time Warner is the key competitive threat to
  Microsoft

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Microsoft Case StudyBlue GroupWorld dominance
and everything thereafter
Company strategy 1 Marshal enormous financial
and intellectual resources Implementation
strategy 30 Billion () war chest war team
Tactics Aggressive protocol development
Acquisitions and, or, alliances/partnerships
ATT access division acquisition Sony content
division Bloomberg/CNBC Iridium (garage
sale price) Yahoo.com Company strategy 2
Create new standards and technologies Implementat
ion strategy Aggressive universal protocol
development to replace TCP/IP Tactics RD to
cannibalize exiting XP technology (SIP from IETF)
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Microsoft Case StudyBlue Group World dominance
and everything thereafter
Company strategy 3 Emulate competitors Implemen
tation strategy Emulating other industry
alliances (AOL/Time Warner) Tactics Acquisition
s and, or, alliances/partnerships ATT access
division Sony content division Bloomberg/CN
BC Iridium Yahoo.com Company strategy 4
Bundle new solutions Implementation strategy
New transmission protocol over all media
including satellite over a central set of hosted
services Tactics Partnerships and acquisitions
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Microsoft Case StudyBlue Group World dominance
and everything thereafter
Company strategy 5 Market with existing product
lines Implementation strategy Introduce new
protocol to all existing product lines Tactics
Implement developed protocol to all new product
and service lines and phase out old technology on
existing product/services lines Company strategy
6 Extend Microsoft in ways that competition
cant emulate Implementation strategy Make all
other transmission protocols obsolete Tactics
Lobby standards groups globally to embrace
encourage new standard
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Microsoft Case StudyBlue GroupAssessment of
Opportunities and Risk

• Opportunities
• Emerging markets (India, China, Indonesia) still
  WIDE open
• Domestic/global subscription rate still low
  (unified messaging potential - translations)
• Lack of a singular transmission protocol
• Satellite communication market still undeveloped
  in some emerging markets
• Risks
• Competitor attacks on current products/services
• Future anti-trust liabilities (ATT, Yahoo)
• Cost of acquisitions
• Protocol specification leaks prior to
  implementation 2nd to market?
• Global government intervention
• Global economic recession

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Microsoft Case StudyBlue GroupKey Learnings
Key Learnings Microsoft is a Gorilla who seems
well positioned for the future.. (Rating
Strong buy)