Macro Environment - Microsoft and Walmart Cases

Macro environment is the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political and social conditions; technological changes; and natural forces.

Microsoft case

The company founded by Bill Gates and Paul Allen in 1975 lived its golden years in the 80's and the 90's, but after releasing Windows XP in 2001 its stocks dipped from $60 to over $40 per share as consumers waited for the next operating system and Apple made a significant comeback with several new Mac computers, the iPod, the iPhone, and iTunes. It didn't help much when the Vista operating system was launched in 2007 and it was plagued with bugs and problems.

The image of Microsoft, during the complication of the recession in 2008, was now compromised by years of Apple's success in advertising a smart, creative Mac character alongside a geeky, uptight PC character.

To rebuild its image, Microsoft acknowledged Apple’s campaign in its own marketing message with a series of commercials that showed a microsoft employee (who looked very similar to the pc character fom apple's ads) talking about the stereotype he's been made into. It highlighted a wide variety of individuals who prided themselves on being PC owners, helped improve employee morale and customer loyalty. The company also opened a bunch of retail stores with the purpose to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy. And ir order to deal with the recession, Microsoft emphasized how cost effective computers with its softwears were, and it reverberated well.

Walmart case

It started when Sam Walton opened up his first discount store in Rogers, Arkansas. He sold the same products as his competitors but kept prices lower by reducing his profit margin. His customers quickly caught on and the company took off almost...