Satya Nadella, who is the chief executive officer, made some very valid points explaining the workings and motive of the Microsoft. Microsoft has been a leading company in the market since very long. Even though it faced very ups and downs in the technical industry, it somehow manages to be at the top very fetchingly.
As Nandella mentioned in an interview, in spite of dealing with several threats every five years, they still prove to be the best of all in the industry. This clearly ensures that their work is very substantial and profitable which makes them maintain their position.
Speaking of the threats which the Microsoft Corp. faces, there are 10 major threats faced by them, with some that are common for other companies as well.
Microsoft shares fell 2.8% to $39.87 on Friday as the Nasdaq Composite index had its worst point loss since 2011. This drop was very massive for Microsoft as the company share hit 52-week high and decade high of $41.66 and that too in a week.
The other hurdle in Microsoft's life is Bill Gates and Steve Ballmer. Bill Gates owns over 300 million shares. Steve Ballmer also implemented a turnaround strategy before he left, and Ballmer has reportedly not given up all control that a new CEO may need to succeed. So, these two threats could cause a major hindrance to Microsoft Corp and impede Satya Nandella's ambitions. He can never achieve success if these two men aren't on his side and play against him.
The generation gap is yet another issue that falls in the head of Microsoft's Board of Directors. Satya Nandella, being a 47 years CEO, is the youngest board member, along with G. Mason Morfit of ValueAct. This had been a problem earlier with the previous set of Board of Directors as well and it continues to be the conundrum to the company. Long time back the board of directors were way too old and thought the only progressible thing that happened in the company was the introduction to the desktop in the office suite and crucibles. So they require a new set of Board members who excel at tech and are young enough to produce a huge profit with new innovations and inventions. Nandella admits that the company has to make progress even faster and many efforts are required by the company workers and by him himself, to maintain the finest position in the technical world.
Microsoft made a huge splash when it released its version of Office for iPad. This is a huge success for Microsoft for its devices as well as the operating system. Microsoft also has Office 365 as a subscription service. Still, a declining PC market and a declining Windows share ultimately will mean fewer and fewer $200 and $300 software sales. Google's Spreadsheet, Document, and Presentation have to be good enough to usurp Office. That is again a very large threat to the industry.
The very large problem that the public is very scared of are the hackers and thus they are very afraid of the data security being hacked by the hackers. Creating a huge empire of the tech world is not enough when you have somebody sitting somewhere in the corner of the world planning to wipe off your existence from the industry. Your success won't count them. The company would fall and would never be able to rise again. It has already happened to some few industries. This is just like the defense sector having to worry about its weapons of warfare being stolen or destroyed. So, this is possibly the most dangerous threat any company can ever face and this is something that cannot be set right back and the company would suffer a great loss with no compensation.
These were some threats that Microsoft Corp. faces. Though Satya Nandella, shows no actual fear when being asked upon about the threats. He admits that these threats could be malicious to the company but the company worker's hard work and good will can set things right and rest is luck.
In an interview, Satya Nandella spoke about empathy being part of the core DNA of any company. He added, what the company needs to understand is the needs of the customers, what they require the most. That would help them to build such things for them which could be beneficial for them as well as their customers. So the most crucial part a company has to work upon is empathy. This way they can meet the unmet, unarticulated needs of customers. That is where innovation falls in as well. One cannot relate to innovation without the sense of empathy. One must not think about his needs and greeds from the company but look forward to meeting the needs of people.
It’s critical to dig deep, identify your unique emotional connection with the product or service, and share your passion with others. Microsoft connects personal passion to a broader purpose. Ultimately, even Microsoft’s business model is dependent on others achieving success with our products, says Nandella.
Nandella praises the Aadhar system in India, as it is a digital system of identity that can help in solving or bringing down transaction cost or improve it. India can move towards achieving the state of infrastructure rich from current state that is infrastructure poor, from a digital technology perspective.
So for Microsoft, a 43 years old and experienced company, it is tough but not impossible to overcome all the threats that come in its way to become a leading company and maintain its position and place in this technical industry. Nandella terms Microsoft to be a tool company, a company that creates technology for other companies as a base to create more technology. It’s thus important for companies to think about the surplus we create around them. He added, " Until we measure ourselves with the outcomes outside of our own balance sheet, there’s no long-term success in business. That’s what we do every day at Microsoft."
When asked about the leadership mantra, Satya Nandella answered, that he learned an essential key to success that helped him to compete vigorously was while playing cricket in his childhood days. It is all about the teamwork, and hard work of each and every individual. It is very crucial to bring out the best in everyone, as a single player can never win the match alone. So, instead of working alone, one must work as a team and cope up with his mates, telling them where to improve and be held together.