Intense competition in software products Changing consumer needs and habits Open source projects Potential lawsuits Strengths Brand loyalty. Most of us grew up using its easy to use OS, are familiar with it and will keep using it. Few other brands are capable to compete with Microsoft for this reason. Even open source OS, which are completely free and well suited to use for common user, find it hard to attract users.
The SWOT Analysis is a tool for determining organizational strengths and weaknesses internal strategic factors and the threats and opportunities affecting the business external strategic factors. Through these approaches, the company can achieve long-term growth in the computer hardware and software market.
Microsoft must maintain effective responses to address the factors shown in this SWOT analysis. This SWOT analysis of Microsoft Corporation highlights the necessity of strategies geared toward further innovation and diversification of the computer hardware and software business.
Microsoft can also extend its efforts to consider issues beyond the internal and external strategic factors in this SWOT analysis.
Dominant brand image Product alignment with positive externalities Strong alliances with other firms The Microsoft brand is one of the strongest in the computer hardware and software market. Microsoft also benefits from positive externalities with existing products in the market.
For instance, the company can establish an alliance with a hardware manufacturer to create hardware products that use Windows OS.
Thus, the strengths in this area of the SWOT analysis of Microsoft show that the organization has strong foundations to compete against other large firms in the global industry. In the case of Microsoft, managers must address the following weaknesses: For example, the Windows operating system remains a target of countless cybercrime attacks globally.
This factor is a weakness because it limits the attractiveness of Microsoft products. In this regard, cyber security is a product aspect of competition among firms in the computer hardware and software industry.
On the other hand, the imitability of some products is a weakness because it could reduce the strength of the Microsoft brand.
Based on the strengths outlined in this area of the SWOT analysis, Microsoft needs to improve product features and intensify its hardware development efforts to ensure competitiveness. Business diversification Innovation for computer hardware products Stronger security against cybercrime Microsoft Corporation is primarily a software business that heavily relies on the popularity of the Windows operating system.
In this regard, the company has the opportunity to grow based on diversification.
For example, Microsoft can diversify through new business development or mergers and acquisitions to establish operations in new markets or industries. In this way, the company can take advantage of other avenues of business growth [Read: Another opportunity is for Microsoft to innovate computer hardware products, so as to increase revenues from hardware sales.
Also, Microsoft has opportunities to improve the attractiveness of its products through continuous improvement of their security features. Thus, the opportunities shown in this area of the SWOT analysis of Microsoft indicates the need for diversification and product improvement.
Cybercrime Piracy Strong competitive rivalry Cybercrime remains one of the major threats against computer technology businesses. Another threat facing the company is piracy, which is especially rampant in many developing countries. The strong brand image and positive externalities are among the major contributors to such market position.
Thus, a recommendation is for Microsoft to continue enhancing its brand image. It is also recommended that the company must increase its alliances with other firms to improve positive externalities. For example, the company must continue innovating to develop products that are less vulnerable to cybercrime.
Another recommendation is for Microsoft to diversify its business to boost potential growth. Recent research on team and organizational diversity: SWOT analysis and implications.
The Handbook of Human Performance Technology, An entrance sign at a Microsoft Dubai office. Microsoft Corporation’s SWOT analysis shows that the computer firm’s internal and external strategic factors point to the importance of product innovation and business diversification.
Apr 19, · Microsoft recently held its Build developer conference and its Envision business conference. Wealth Management Consumer All Consumer 7 Reasons to Give Microsoft's Strategy Another Look. Microsoft could expand its range of cloud services and software as the demand for cloud-based services is expanding.
Mobile advertising. Mobile advertising markets are expected to grow in double digits over the next few years and Microsoft has a great opportunity to tap into these markets with its mobile OS. Strategic agility and innovation management Education competencies: Strategic agility and innovation management This competency is one in a set of complete functional and behavioral qualities that, when fully realized, can help lead to professional success.
The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the firm understands the strategy.
- The Nokia-Microsoft Alliance In The Global Smartphone Industry On February Nokia, Inc., and Microsoft Corp. have announced plans for a “broad strategic partnership” under which Nokia will use Microsoft’s Windows Phone platform as a new operation system in it’s new smartphones.