Ultimately I'd like to see Microsoft widen its defensive moat against Google some more before I consider it to be a worthwhile long-term investment. Microsoft Corporation is mainly a software business that heavily depends on the recognition of Microsoft Windows. Concerns over confidential information of users being vulnerable to leaks. The entire cloud business -- which includes Office 365, Dynamics CRM, and Azure -- represents the backbone of Microsoft's long-term growth strategy. Its key competitors in Windows Live software … Microsoft Company reacts to the internal and external tactical factors identified in this SWOT analysis. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. Chrome OS and Google Docs are less popular than Windows and Office, but their steady growth in the low-end market has already forced Microsoft to lower its prices. Browse marketing analysis of more brands and companies similar to Microsoft. Strengths Microsoft has several important strengths, hence their survival as a company. It will likely keep growing that business with additional acquisitions in the near future. The scalability of that OS could leverage Microsoft's strength in PCs to offset its weakness in mobile. Excellent advertising and branding of the brand done through TVCs, online ads, print ads, sponsorships etc, 10.More than 100,000+ people are employed with Microsoft. Microsoft Office is one of the most widely used products across the world by individuals and enterprises, 3. This strategy is unsustainable in the long run, since Microsoft needs fresh software revenue to survive. Strong legacy of the brand since its inception in 1975, 5. However, that aggressive strategy caused Windows OEM Pro and non-Pro revenue to respectively decline 19% and 26% annually last quarter. Some Microsoft products are vulnerable to imitations and hacks which have hurt the brand image, 2. Microsoft has several important strengths, hence their survival as a company. Internet Explorer and Bing search are among the leading internet solutions provided by the company, 7. That robust growth enabled Microsoft to raise its dividends annually over the past decade. Microsoft is also known for releasing new product updates and product fixes throughout its network. The company has flagship stores at prime locations across the world, 9. This factor is a weakness because it limits the responsiveness of Microsoft company products. Microsoft is expanding into the video game market by producing items such as the Xbox. MBA Skool is a Knowledge Resource for Management Students & Professionals. Below are the Strengths in the SWOT Analysis of Microsoft: 1. Microsoft also gains from positive externalities with existing products on the market. It is an analytical tool to understanding the environment of a business. Hunter Taylor has been a freelance writer since 2005. The goal is to understand the internal environment (strengths/weaknesses) and the external environment (opportunities/threats) that can help or harm a business. In Microsoft SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. This SWOT analysis (S trengths, W eaknesses, O pportunities, T hreats) should provide some insight into how Microsoft’s future might turn out. Threats Facing Microsoft Corporation (External Strategic Factors) The threats or external strategic factors that reduce or compromise business are considered in this area of the SWOT Analysis model. The company designs and manufactures software, hardware, operating systems, apps, and devices. Let's conquer your financial goals together...faster. Many technology companies coming up with internet boom have reduced the dominance of Microsoft, 2. SWOT stands for strengths, weaknesses, opportunities and threats. During these strategies, the company can achieve long-term growth in the personal computer hardware and software marketplace. A Forrester Research study in late 2013 found that 28% of surveyed companies were still using Office 2003. Strengths Microsoft's main strengths are easy to see. Microsoft and other companies have conducted SWOT analyses to provide insight into the business. Microsoft SWOT analysis Strengths in Microsoft SWOT Analysis. are widely used throughout the business community. Over 90% of PCs worldwide run various versions of Windows, while Microsoft Office remains the top productivity software suite in the world with 1.2 billion users. The Microsoft brand is among the strongest in the personal computer hardware and software marketplace. During these strategies, the company can achieve long-term growth in the personal computer hardware and software marketplace. Quizzes test your expertise in business and Skill tests evaluate your management traits. Furthermore, the company’s product portfolio shows dependence mainly on software products, which weakens the company against competitors that have dominant software and hardware products in the market. SWOT Analysis is a proven management framework which enables a brand like Microsoft to benchmark its business & performance as compared to the competitors and industry. SWOT analysis of Microsoft analyses the brand/company with its strengths, weaknesses, opportunities & threats. ThreatsThe biggest long-term threat to Microsoft is Google. For example, the business can establish an alliance with a hardware manufacturer to create hardware products which use Windows OS. Microsoft is the world leader in computers, softwares, consumer electronics & services, 2. Microsoft Office however, is still the most widely used office software as is the Windows OS. Threats – External Strategic Factors. Some strengths of Microsoft are its name recognition and its rapid product development. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. By comparison, global smartphone shipments are expected to rise 3.5% this year to 1.94 billion units -- more than, the number of forecast PC shipments. That threat also applies to its cloud services, where competition between Microsoft, IBM, Amazon, Google, and other companies is lowering price expectations. Market data powered by FactSet and Web Financial Group. This SWOT analysis of Microsoft Corporation highlights the requirement of strategies aimed toward further invention and diversification of the personal computer hardware and software industry. Taylor holds a Master of Business Administration from Shorter University. Microsoft’s portfolio of products and services is varied and huge which comprises of operating systems for computing devices, servers, phones, and other intelligent devices. Swot Analysis of Microsoft Microsoft is an American technology company which operates in a global scale. Provide more solutions to enterprises especially in online security, smartphone solutions etc. The company faces stiff competition in all its segments. Many investors are probably wondering if the stock is becoming stagnant again, as it remained for most of the past decade. By comparison, global smartphone shipments are expected to rise 3.5% this year to 1.94 billion units -- more than six times the number of forecast PC shipments. Microsoft is a company in transition. Innovation for personal computer hardware products. Will Microsoft's Xbox Finally Take Market Share from Sony's PlayStation in Japan? The goal is to understand the internal environment (strengths/weaknesses) and the external environment (opportunities/threats) that can help or harm a business. Looking for newest Microsoft Corporation SWOT analysis for 2013? Since Chromebooks offer free productivity software and cross-compatibility with Android apps in a cheap hardware package, they could. Workforce’s related criticisms – Microsoft’s 2018 workforce diversity statistics showed an imbalance in its recruited workforce. Image courtesy of Microsoft Office online. A detailed SWOT analysis of the Microsoft company is presented below: About Microsoft Corporation : Microsoft Corporation, also known as MS, is an American multinational technology company. Microsoft is one of the top technology companies of the world, IT Solutions/software retail and business, Microsoft targets nearly all individuals and business who use a computer, Microsoft is one of the world's best technology company. Over the past two years, Microsoft acquired companies like Parature (CRM software), Green Button (cloud computing), Aorato (machine learning), and Datazen (business intelligence and data visualization) to bolster its portfolio of cloud services.