Expanding Microsofts Global Reach: Tapping into Africas Untapped Potential

Abstract

Global Marketing Plan Part 2; Microsoft [Name] [University] BUS622 Week Six Instructor’s name 7/18/23 Introduction Microsoft is an American multinational cooperation and a world leader in operating systems. The company deals with cloud computing, software development, social networking, and video games. Global marketing is an integral part of each organization. Microsoft is however the most renowned Microsoft brand that is globally familiar, established by Paul Allen and Bill Gates in 1975. In 2016, the United Nations announce the internet as a basic human right yet only 62% of the world population can access internet services (Szoszkiewicz, 2020). This gives Microsoft an opportunity to diversify especially in countries in Africa who still have limited access too technology. Microsoft entered Africa three decades ago and has its locations in Nairobi, Kenya and Lagos, Nigeria. This marketing plan provides a rationale in which Microsoft can enter Africa, exemplifying Kenya as the potential for sustainability and development in the African Continent. Environmental Analysis There is a constant changing landscape regarding the economic, legal and regulatory factors, trade, economic, and social and cultural factors and Microsoft strives to navigate for its productivity and success. Microsoft strategically exploits hardware and software opportunities based on these factors. Economic Factors The ICT department is an important aspect in economic growth and promoting competition in businesses. The economic stability of countries across the globe affects company performance and Microsoft tends to thrive in companies with the strongest economies. The demand of Microsoft products and services depends on inflation, unemployment, interest and exchange rates of countries around the globe. High growth developing countries make it possible for high sales for Microsoft. The rise of the middle class globally depicts the rise of disposable income which contributes to rise in sales and revenue. Social and Cultural Factors The customer behavior and expectation affect Microsoft. The attitudes about leisure, cultural diversity, and demand of high-quality services pushes Microsoft to develop products on their customer’s tastes and preferences. For instance, gaming opportunities are common for leisure and Microsoft investing on this issue satisfies customer leisure preferences. The increasing cultural diversity is a threat to Microsoft due to the possibility of product mismatch. Microsoft needs to address to the issue on big cultural groups. The stable demand for high quality products and services is an opportunity to improve customer support services. Political, Legal, and Regulatory Services. Waste disposal for Microsoft products is a threat and opportunity for Microsoft to thrive in their productivity and sales. Increasing electronic waste disposal regulations is a platform to improve the company’s brand image. Improving Microsoft patent laws in the globe is a step towards computer software privacy. Compliance with the international laws defines the success of Microsoft. The intellectual property laws and data protection regulations affect the operation of Microsoft around the globe. Energy consumption on Microsoft products causes environmental pollution and Microsoft improvement through energy efficient computing technologies. General Strategy Microsoft needs to expand its Jurisdiction in Africa. Africa is the fastest growing continent; however, internet connectivity, digital capacity, and innovation is still a problem. Kenya is one of the fastest developing countries in Africa and makes it an opportune location for Microsoft to thrive. Kenyans have embraced technology in banking, farming, and healthcare. Microsoft needs to broaden its products and services to Kenya. Kenya’s capacity to embrace technology is a potential strategy for Microsoft to accelerate digital transformation, build strong partnerships, and create sustainability in the society. This can be achieved by promoting innovations such as cloud. Microsoft interest to fuel machine learning, AI, and innovation promotes engineering talent poising innovation across the continent. Microsoft has shown its interest in Africa by opening the first African Development Center in Kenya and Nigeria to serve as a premier center of engineering for Microsoft, where world-class African talent can create solutions for local and global impact (Furthering Our Investment in Africa: Microsoft Opens First Africa Development Centre in Kenya and Nigeria - Middle East & Africa News Center, 2019). The prime reason is to further their connection with developers and governments improving sectors in FinTech, AgriTech and Off Grid energy. The market strategy used by Microsoft is Globalization. Microsoft strives to reach all countries around the globe to market its products and services. Technological innovation ids rapid around the globe which gives Microsoft a viable market to develop it products and sell its services. Microsoft promotes its products around the globe through social media platforms, advertisements in TVs and print media to market their products around the globe. I propose localization as a viable strategy in ensuring that Microsoft thrives around the globe. The world has vast diverse cultures and tastes and preferences and embracing localization is a step to reaching their customers at their needs (Keegan et al.,2020). This can be achieved through advertisement in local languages and campaigns on the high tech in Microsoft. Localization of versions of software enables the company to meet the country at its needs and preferences. Microsoft interest to consider Kenya as its hub is based on the following factors. Demographic factors Kenya has a fast-growing population of over 50 million people and a vast majority is of 35 years and below. The pool of the young population provides a platform for high technology investment by Microsoft. Economic factors Kenya a GDP growth rate of 5% in the recent years making it one of the fastest growing economies in Africa and GDP is projected to grow 5.6% in 2023 and 6.0% in 2024 (African development Bank, 2019). The country has its focus on investing on the agricultural sector, technology, education, and the private sector which show the need for Microsoft penetration in the market. Trade factors Kenya is having the gateway for global markets in Mombasa port which makes it easier for other countries to trade freely with the country. The country is also the largest economy in East Africa and enjoys a vast trade opportunity in the largest regional market of the East African Community (EAC). Social factors Kenya has aggressive and vibrant youth which makes it a favorable environment for investment and innovation. The literacy rates have recently improved since the government has offered free education for primary, and part of secondary and university education. The entrepreneurial culture in Kenya is captivating which makes Microsoft viable in the country. Cultural factors Kenya has over 40 ethnic groups which shows the rich cultural diversity. This is an opportunity for Microsoft to invest in the different cultures and provide services that relate the cultural groups. Legal factors The government of Kenya has advocated for a favorable legal and regulatory environment that eases business in the country. The country has a swift and stable regulatory environment that allows investment and innovation. Political factors Kenya’s political environment has in the past put into test but the country has continuously embraced peace in the past decade. The Kenyan government has continuously supported innovation and foreign investment which gives Microsoft an opportunity to invest in the company. The country has a democratic government with a multi-party system of governance which makes it a country of freedom and expression. Political instability and changes in the government regulations and policies have an impact on the operation of Microsoft. Political instability is a global issue due to change in leadership and geopolitics affects the operation of Microsoft. Trade Factors Microsoft operations cuts across all countries across the globe and highly affected by exchange rates, tariffs, trade barriers, and trade agreements. Microsoft supply chain is defined by distributors who can be affected by transportation costs and regulations along the borders. Global Information Systems and Market Research: Information Technology, Management Information Systems, and Big Data for Global Marketing in Microsoft. Big data offer vast information on marketing-related issues for Microsoft. Biga data plays a significant role in Microsoft’s business intelligence and analytics product range (Chen et a., 2022) It gives Microsoft a platform to analyze market trends, market preferences, and sales patterns, and providing just in time (JIT) quality services. Big data gives Microsoft an opportunity to learn more about the internet space. “Big data allows executives to see which factors “move the needle” across a variety of metrics.” (Keegan &Green, 2020). Microsoft uses big data to know where and ways to access information, understand its business environment, in enhancing the decision-making process and provide solutions to occurring problems. For instance, Microsoft uses big data analytics in a cloud-based service, Azure Intelligent System Service to collect and manage data from the Internet of Things (IoT). Information technology provides the company with a continuous flow of information that helps in the decision-making process. Management information systems give the company a platform to provide up-to-date services and analytic functions important in the decision-making process. Africa is a dark continent, yet to be explored to its full potential. Microsoft’s expansion to Africa, Kenya will make use of big data, market research, and global information systems to provide business intelligence in the decision-making process in the country and reduce the cost of data collection. Kenya has a diverse culture and Microsoft’s human resource and legal policies provide a platform where they respect the country’s culture. This can entail investing in IT infrastructure for instance an electronic data interchange (EDI) that gives the company an opportunity to conduct business globally, an efficient consumer response (ECR) for customer feedback, and an electronic point of sale (EPOS) determining customer preferences in geography. These tools are important in understanding customer preferences and increasing loyalty. To access Kenya’s domestic market, Microsoft will need to source information through direct perception to understand its economic social and cultural, and legal environment. When Microsoft launched the Xbox game on the Japanese market, it failed to their since they had a different perception of American gamers and it failed to thrive in the market, which prompted Microsoft to adapt to the Japanese local market through direct perception. Direction perception is important for a company to expand globally by capturing local markets of different countries and identifying their tastes and preferences. Microsoft needs enough information to formulate an efficient marketing strategy to access Kenya’s domestic market. Market research is an essential tool in understanding the country’s environment, financial and physical information, legal environment, competitive advantage, and foreign exchange information (tariffs, BOP, interest rates, and the currency). A global company such as Microsoft needs a market information system as a strategic asset in accessing Kenya’s domestic market to enhance its competitiveness and formulate its organizational structure. Microsoft’s segmentation, targeting, and positioning strategy for its services in Africa Microsoft’s rise in the domestic market is linked to its targeting, segmentation, and position. Kenya’s population is rapidly growing which gives Microsoft an opportunity to enter the domestic market. Market segmentation involves categorizing customers in a country according to their common characteristics. Market positioning helps differentiate the product and brand in the domestic...