(a)Explain the differences between diversification and vertical integration strategies in relation to the scope of business.

(b)Would you classify the following strategic moves of Microsoft as diversification or vertical integration strategy? Why?

i)Launching of the portable music player Zune;

ii)Launching of the Xbox game console; and

iii) Launching of the Surface tablet.

(c) What are the major potential benefits and risks of Microsoft's strategic shift from selling "packaged software" (i.e. Windows operating system) to launching "devices and services" (i.e. tablets and mobile phones)?