Swot Analysis Of Microsoft

The announcement of a leadership change at Microsoft has sparked speculation about a potential shift in strategic direction and raised expectations that the company, with its seminal history and its recently-troubled famed founders, will be able to steer its moves in the right direction. The resulting SWOT analysis puts strategic decisions in context and analyzes the environment the company is in today. The discussion that follows should be viewed from the larger perspective of the interplay between internal dynamics and external commercial forces that shape Microsoft’s quest to regain its market leadership.

Microsoft

Understanding the company for a Microsoft SWOT analysis is essential. The headquarters of Microsoft are in Redmond, Washington. The company has clients all over the world, and they have helped it build its reputation. Microsoft is ranked 21st on the 2020 Fortune 500 list based on revenue.

SWOT Analysis of Microsoft 

Strengths of Microsoft

The Microsoft brand is among the most powerful in the hardware and software market. This advantage helps the company to entice the customers, particularly those who value brand strength over dependability. Microsoft also avails from the positive externalities of existing products in the market. For example, the company’s Windows operating system has become more popular as more mediator software developers create programs for IBM PC-compatible operating systems. Additionally, the calibre of alliances with other companies helps Microsoft’s ability to sway the market in its favour. For example, a company might form alliances with hardware manufacturers to create hardware products that use the Windows operating system. Therefore, Microsoft’s SWOT analysis strengths in this field show that the organization has a strong foundation to compete with other leading companies in the global industry.

Weakness of Microsoft Company

Microsoft’s biggest weakness is the lack of product innovation. This affects Microsoft’s ability to sell new versions of Windows and compete with more advanced Apple products. Some of Microsoft’s acquisitions have been successful, generating more than just revenue and products. On the other hand, Microsoft also made many acquisitions that were quickly liquidated or terminated, such as LinkExchange, WebTV, and Danger.

It has been involved in numerous lawsuits related to product design, production and performance liability, labour issues and intellectual property. Microsoft’s main products, such as the Windows operating system, have been widely criticized for being too weak against various viruses compared to other operating systems.

It cannot control the illegal use of its software business, especially operating systems in developing countries such as China and India. According to reports, the Windows operating system has been hacked several times. Microsoft is vulnerable due to an increase in cybercrime.

Opportunities of Microsoft

Microsoft doesn’t have any special opportunities that other tech companies don’t, but their earlier stated advantages enable them to act quickly when needed. Some things they can do:

Make the most of their current rankings: As mentioned earlier, Microsoft seems to have a lot of money. They have a great chance to develop the best software in the world with their sophisticated programmers and big money.

Leverage the power of the customer network: Microsoft is largely embraced by customers, so if they can create some momentum for their existing condition, they’ll stand to gain a lot.

Essentially, Microsoft has the potential to transform its existing customer foundation, which typically only pays for highly-priced products every few years, into more active consumers.

Threats of Microsoft

Intense competition among software products: With rivals such as Google and Apple already taking hold, Microsoft is under more pressure than ever to bring a successful operating system in the markets of smartphone and PC. 

Customer shifting demands: Customers are switching from purchasing laptops and PCs to purchasing smartphones and tablets, markets where Microsoft has little market share.

Open-source project: Ample new open-source projects are entering the market, some of which are very fortunate, such as the new Linux operating system and Open Source Office. Open-source projects are free and therefore an option for high-priced Microsoft products.

Potential litigation: Microsoft has been sued many times and faced loss in numerous wide-scale lawsuits. Litigation is expensive because it requires time and resources. 

Conclusion

Microsoft should improve its competitiveness in the market by reviewing the following recommendations from industry experts:

• Pay more attention to the hardware industry. Since Microsoft supplies the operating system to all other hardware makers, making their own hardware will give them an advantage.
• Invest more time and effort in Microsoft Teams. This product from Microsoft is good and has a strong potential to beat the top dogs.
• Build a strong security system that cybercriminals cannot easily break into.
• Create more exclusive Xbox games.
• Be more careful when acquiring other companies. In the past, Microsoft has acquired companies that end up losing money.

All in all, despite all the threats and weaknesses, Microsoft is arguably one of the strongest companies out there. Their impact on the OS industry is so great that they won’t suffer any losses for the foreseeable future. However, Microsoft shouldn’t settle for all the obscure features of other products.

Therefore, any company like Microsoft is highly recommended to conduct a SWOT analysis to evaluate. Because it focuses on internal and external factors, a company like Microsoft can learn which department to apply for. Our Microsoft SWOT analysis shows that the company has a huge advantage and can even thrive if it seizes the opportunity.