Monday, July 2, 2012

Microsoft led by CEO Steve Ballmer buys Yammer for $1.2 Billion


Microsoft led by CEO Steve Ballmer buys Yammer for $1.2 Billion

Business Leaders-Current Event                        

After all the talk Microsoft lead by CEO Steve Ballmer finally bought Yammer, a social corporate networking site.  Yammer enables those of the business world to interact, socialize, and collaborate through a private internal network.  In a sense Yammer is like Facebook but more so for the corporate world. 

Microsoft and its CEO Ballmer are attempting to be the business leaders in internal corporate networking, yet many speculate the move has come too late in the game.  In this course we have learned that it is not enough to copy what a firm is doing to gain competitive advantage, but to differentiate and sustain a competitive advantage is key.  With this said Ballmer has his work cut out for him if he is going to go head to head with the networking giants who already know the game. 

With other networking sites already available Microsoft will have to differentiate themselves if Yammer is going to survive.  A comment made by Trip Chowdhry in USA Today claimed “"Microsoft is too late to the social party,".  However some proponents of the decision made by Ballmer believe the move will be to Microsoft’s advantage.  Larry Cannel was quoted in Yahoo News saying, “This acquisition will immediately make Microsoft a strong competitor in the enterprise social market”. 

Microsoft will attempt to place the importance of Yammer alongside other programs such as excel, outlook and power point which are used on a daily basis in many companies.  If Yammer succeeds the way other Microsoft programs have in the past, then it is possible that business leaders will have to familiarize themselves with the network.  In the event that the private network hits, business professions should get familiarized with the site so that when the time comes to use it they already know their way around.  After all we have learned in this course it will be interesting to see how CEO Ballmer portrays his strategic management skills with the acquisition of Yammer.

References:

Acohido, Byron.  Microsoft’s Yammer Deal May Cost Too Much, Come Too Late.  25

Jun  2012.  USA Today.


Pepitone, Julianne.  Microsoft Buys Social Office Network Yammer for $1.2 Billion.  25 Jun 

2012.  CNNMoney.

http://money.cnn.com/2012/06/25/technology/microsoft-yammer/?source=cnn_bin

Rigby, Bill.  Microsoft to Buy Yammer for $1.2 Billion.  25 Jun 2012.  Yahoo News.

            http://finance.yahoo.com/news/microsoft-buy-yammer-1-2-013912054.html

2 comments:

  1. First off, you should have put the links directly into the story. I would have liked to check out some of the links, but am too lazy to copy and paste them.

    Anyways, Microsoft's strategy is to be late to markets. They are an analyzer firm. They analyze markets, see what the deficiencies are, then create a product better than what is already offered and exploit the deficiencies. They used this strategy in the business world (see Microsoft Office), the gaming industry (see Microsoft Kinect) and they are using this strategy in the tablet market. I have no doubts that Microsoft is late to the game on purpose.

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  2. Good article! Someone mention that they are too late in the game. Not necessarily, they are improving what’s out there. So their beginning was late but their finish will be well recognized, just like their other products.

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