Technology companies: With these five strategies, Microsoft Apple has been able to surpass

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MLike no other technology CEO, icrosoft's CEO, Satya Nadella, shows how to revive a business through a change in strategy. Since joining in February 2014, Microsoft has consistently increased sales and profits. In the market value of the software group this year, first Google, then Amazon and finally Apple: at present, the Seattle software publisher weighs 828 billion dollars. The recent fall in Apple's prices has brought corporate value to $ 827 billion.

Satya Nadella Apple, CEO of Microsoft, has surpbaded the stock market for five reasons:

1. Develop innovative cloud services

While Satya Nadella's predecessor, Steve Ballmer, had slept well on mobile devices, Microsoft was able to consolidate its position in business. Nadella has built on this foundation by expanding its cloud services business and persuading its enterprise customers to use not only Microsoft software, but also Microsoft infrastructures. At the same time, Microsoft Azure Cloud rivals Amazon's AWS offering to secure its leading position in the growing market of enterprise computing – and in terms of numbers, Microsoft's Amazon currently outperforms. This is successful because the company seamlessly integrates its cloud services with its software products: Microsoft Windows uses OneDrive cloud storage, the Office Office 365 program is even run entirely from cloud servers in the browser. Companies can rent servers completely with the appropriate Microsoft software and thus save administration costs. The cloud sector is currently the fastest growing division of Microsoft.

2. Define new revenue models

Nadella has completely changed the revenue model for the sale of application software: previously, companies had to buy the Windows operating system with their computers and usually also ordered Office. The new version of Windows 10 has however been updated for free by most business users for existing devices. The corresponding Office 365 was converted at the same time into a subscription template. Thus, Microsoft no longer depends on persuading its corporate customers to buy new software with considerable effort every few years. The Group is moving away from business cycles and significantly increasing sales. At the same time, internal development and support costs are reduced as customers use all the same software and desktop operating systems up to date.

3. Dissolve old structures

Nadella reorganized her group without taking into account existing structures, dissociating the departments that hindered innovation through their silo reflection. He has not hesitated to dissolve former cliques of Bill Gates-era officials and to give more power to their leaders. This seems to have motivated: Microsoft under Nadella is considered more innovative than ever, products work with customers and are requested accordingly. In addition, the group shows investors that it has a vision for the future: it conducts fundamental research on, for example, quantum computers or develops hardware and software for augmented reality applications. As a result, Microsoft badysts are currently seeing additional potential: the group could become the next billion dollar company.

4. Offer wide range of products

Microsoft is far more diversified than its California rivals: only a third of its revenues come from the sale of Microsoft Surface devices, Windows software and Xbox, end-user activity. The rest comes from cloud trading, the sale of matching software and the service sector. This broad product line allows Microsoft to stay independent of the growth of different sectors, such as the highly cyclical online advertising market, from which its competitor Google has generated more than 85% of its revenue.

5. Do not rely on a product

Apple would not have caught up with Apple if the iPhone group had not lost much of its value in recent weeks: Asian suppliers' sector news indicates that Apple is currently reducing its orders for new iPhone components . In particular, the new cheap iPhone Xr should arrive much less well at Apple than expected by Apple. In addition, the group seems to have a little messed up the price with the new iPhone Xs. Devices costing more than US $ 1,000 will overtax even vulnerable Apple customers. The first reports come from Japan, according to which the Group is offering for the first time discounts to mobile phone service providers to increase sales. These detailed messages all point to a fundamental Apple problem: the group is heavily dependent on the success of the iPhone, which is a result of global economic development as a luxury product. If the mobile phone market stagnates, Apple will not be able to develop in the medium term, as long as the Group will not invent a new flagship product. However, Apple CEO Tim Cook – unlike Nadella – can not claim that for himself.

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