Please read the case Microsoft’s Diversification Strategy and answer the following questions
3 page single spaced (double between paragraphs and after headings), 12 point font, 1 ” margins, well formatted and proof-read.
Discussion Questions:
1) Compare MicroSoft’s “old” Value Chain to the “new” Value Chain proposed by the diversification strategy.
2) What are the main features of the “new” Value Chain? (Drawing from the textbook)
3) What are the main drivers of the plan to diversify (This will draw on the C&S article, and the Expanded Porter 5).
4) Should MicroSoft use and Organic or Inorganic approach? What are the added costs and limitations to consider?
5) Does their diversification plan pass the yes/no tests we have discussed? In particular, is this an attractive strategy that creates actual synergies?
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