Microsoft SWOT Analysis analyzes, Microsoft Corporation is one of the best-known software companies in the world. The corporate is famous for its Windows and Office software. In addition to software products the business manufactures and develops consumer electronics such as tablets and game system. SWOT Analysis Of Microsoft can teach us a lot about Microsoft corporation.
Did you know? At age 31, Bill Gates was officially the youngest billionaire in the world. This was 2 years after Microsoft Windows was released.
Captain of the vessel Bill Gates and his business partner Paul Allen founded Microsoft in 1975. Microsoft has dominated the market for software ever since, providing hardware and software products Operating systems, apps as well as devices. Cloud computing and office suites. Microsoft is undoubtedly the world’s most famous American multinational company in technology. It has been at the leading edge of technological advancement for over 40 years, and has contributed significantly to the field of technology.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Microsoft.
Microsoft At A Glance – Microsoft SWOT Analysis
Company: Microsoft Corporation
Founders: Bill Gates | Paul Allen
Year of establishment: 4 April 1975, Albuquerque, New Mexico, United States
CEO: Satya Nadella
Headquarters: Redmond, Washington, United States,
Employees (Dec 2020): 181,000
Ticker Symbol: MSFT
Annual Revenue (Dec 2020): US$138.6 Billion
Profit net income (Dec 2020): US$46.3 Billion
Microsoft Products & Services: Bing | Bing Video | Cortana | docs.com | LinkedIn | Microsoft Azure | Microsoft Dynamics |Office | Microsoft Money | Microsoft Office Online | Microsoft Office 365 | Microsoft Windows Apps for iOS Applications available for Android Surface Pro | Microsoft Teams
Company Website: www.microsoft.com
Competitors: Apple | Google | Oracle | HP | SAS | Salesforce | Sony | SAP | Oracle NetSuite
Microsoft SWOT Analysis
SWOT Analysis Of Microsoft analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Microsoft SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Microsoft SWOT Analysis. Below Is The Detailed SWOT Analysis Of Microsoft.
Microsoft Strengths – Microsoft SWOT Analysis
1. Leading Software Company: Leading Software Company Microsoft is undisputedly the market leading software company, with a particular expertise with cloud computing. It’s the biggest creator of Windows OS and the leading cloud player. It provides cloud services to businesses via Azure, Office 365, and dynamic 365. In the quarter ending March 31, 2020, users who use its remote work platform, Microsoft Teams, increased by 70 percent between 44 and 75 million within six weeks . It also it increased by 110% just 4 months prior.
2. The largest company in the world with a dominant market shares: Microsoft is the 2nd largest company worldwide according to market value. Microsoft also holds the highest market share and has a 3% point increase over the top five cloud services providers(Microsoft, AWS, IBM, Oracle, Google).
3. A vast market share: The HTML0 platform has a huge market reach. Microsoft is operating in over 200 countries. Following the release of the version that was promoted of Windows 10, it has more than 700 million installations across the globe.
4. Growing continuously: The most recent earning results of Microsoft clearly show its impressive growth in the cloud industry. According to the Investor’s Business Daily, Microsoft could be worth $2 trillion by 2022.
5. The addition of SKUs with newer versions (Stock Keepers): Microsoft has recently added newer SKUs to its portfolio of brand names. The list comprises Microsoft 365 combining Office 365 and Windows 10. It is a multi-billion dollar company.
6. A renowned brand with great customers’ loyalties: The company Microsoft is home to 1.2 billion Office users as well as sixty millions Office 365 commercial clients. It is without doubt the most loyalty of its customers. The brand is trusted by its customers and stay committed to its brand.
7. Big Market Capitalization: With 776 billion U.S. dollars of market capitalization, Microsoft is one of the most technologically advanced companies in the world. Microsoft is ranked 2nd largest business in 2020 based on its market value. It was also the third most valuable brand globally in 2019.
8. Effective advertising platform: With its powerful and efficient strategy for marketing, Microsoft is influencing people around the globe. The emotional advertisement that which aired in July and bore the slogan ‘The future begins today’ that impacted a lot of people around the world.
9. Reputation of the brand: Brand reputation Microsoft was placed fourth by Interbrand as the most valuable brand and has the highest strength in brand and brand equity in the digital sector. In the 2020 Forbes Global 2000 Ranking, Microsoft is ranked 13th overall and is ranked 6th among the top-rated brands around the world.
10. A simple to use program: It is a simple to use program. Microsoft is renowned for its high-tech and top-quality products. Windows OS and Office software products are extremely user-friendly and have high-end quality standards.
Microsoft’s Weaknesses – Microsoft SWOT Analysis
1. Exposure to PC markets: PC shipments are usually subject to frequent drops because of the rise in rates and currency fluctuations. This has put Microsoft in a precarious spot.
2. Theft from cybercrime: The growing number of cybercrime instances leave Microsoft in a state of vulnerability. Hackers have been reportedly attacking the security of Windows Operating System several times.
3. The lack of innovation in HTML0: The HTML0 platform is not advancing in its innovation. Microsoft has not been able to increase its hardware sales like phone and tablet computers. It is lagging behind in terms of innovation and advancement in technology however, Apple, Google as well as Amazon and Google are fast taking off in the right direction.
4. The lack of market leadership in the Internet browsers: Even though Google, Safari, and Firefox have been growing their market share of the internet browsers, Microsoft is losing the market. Microsoft IE & Edge didn’t even make it onto the list of the most popular 2018 internet browsers.
5. Ineffective acquisitions: Microsoft’s less acquisitions such as WebTV, LinkExchange, Massive and Danger led to failures and divestitures. These investments that are not profitable are among the most serious problems of Microsoft.
6. Unfair commercial practices: The case was brought in Europe, Slack Technologies filed an action against Microsoft on the basis of unfair competition practices. In the US the federal appellate court has been hearing an appeal from Improved Search LLC, which may revive a lawsuit against Microsoft for infringement of a technology used in search engines patent.
Microsoft’s Opportunities – Microsoft SWOT Analysis
1. Cloud-based business growth: Cloud-based services have seen huge expansion and have been a huge success during the past few years. This means there’s a great opportunity for Microsoft to grow its cloud-based business. The company announced in May of 2020 that Microsoft declared that it will be releasing the latest edition of the cloud-enabled software that will meet the demands of healthcare companies.
2. Technology and Innovation: Microsoft has an enormous potential in many areas such as AI gaming technology and AI. Making investments in these areas could help Microsoft.
3. Alliances, Acquisitions and Partnerships: Partnerships and Acquisitions Microsoft will be able to focus on creating new alliances and strategic alliances. This will allow Microsoft to expand its market share. The acquisition of major hi-tech companies will be an opportunity to make money for Microsoft. In April 2020 Microsoft was awarded an five-year contract to provide Coca-Cola’s business software.
4. Industry of smartphones: The growing market for smartphones and tablets present a huge potential for Microsoft. Microsoft can profit from the growing demand for these devices.
5. Cost-leadership strategy: The strategy of cost leadership Microsoft has the possibility of increasing revenue and sales by selling its products at affordable prices. It could also deter hackers from using its software in a way that is illegal.
6. Solutions for remote working: Recent events have led to a rise in the need for solutions that allow users to work from their homes or remotely from any location in the globe. Microsoft’s remote-work solution called Microsoft Teams is already an industry leader and was used by 75 million people at the time of April 2020. Revenue generated from Teams has helped Microsoft beat its quarterly estimates for the second quarter of 2020. The company can leverage Teams to further boost growth over the long term.
7. Diversify the portfolio: offering a greater range of services improves stability. Microsoft recently revealed that it’s interested in purchasing Interactive Entertainment, a gaming division which is owned by Warner Bros. AT&T, which is the owner of Warner Bros, is already contemplating the sale of Interactive Entertainment for $4 billion.
Microsoft’s Threats – Microsoft SWOT Analysis
1. Workforce’s associated criticisms: Microsoft’s data on diversity of its workforce revealed an imbalance in the recruitment of its workforce. The proportion of minorities and women employed was very low, which prompted the criticisms and arguments that are aimed at Microsoft’s HR policies.
2. Gay references controversy: The HTML0 gay reference controversy Microsoft has been subject to a variety of criticisms concerning the Xbox Live game service. The reference to homosexuality and gays are not allowed in the Gamertag or user’s profile since the company believes that this is inappropriate and offensive for other players.
3. Competitors that are aggressive: The HTML0 market is a fierce competition Microsoft is competing in the market with Google as well as Apple. The established positions of these companies could be a threat to Microsoft’s position on the market. The company announced in June of 2020 that Google has stepped up its game for remote work , adding video-calling features as well as editing tools and other remote tools in Gmail to attract customers away from Microsoft.
4. The changing preferences of the consumer: People are attracted by the world of notepads, smartphones and laptops. Microsoft holds a small share of these areas.
5. Open Source Projects: Similar to Linux OS and Open Source Office numerous new open source projects have successfully stepped into the market by offering similar services at no cost. This could be a threat to Microsoft which offers the same products at a pricey cost.
6. Cybercrime and piracy: Cybercrime thefts are on the rise and software piracy problems have significantly impacted Microsoft’s security system.
7. Favoritism in contracts that are influenced by the government undermines trust: Recently, Microsoft was awarded a $10 billion Pentagon contract over Amazon. Some officials and critics claimed that Amazon was better qualified, but President Trump’s administration was the one who influenced the decision to give the contract to Microsoft because of the president’s conflict against Amazon CEO Jeff Bezos.
8. Anti-encryption drive: The government as well as child welfare groups have been urging Microsoft along with other technology companies to eliminate encryption of customers which allow child exploitation to run their online activities without fear. Microsoft and other majors have agreed to make disclosures of perpetrators, but many government agencies and organizations for children are demanding more.
Microsoft SWOT Analysis Template
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