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SWOT analysis is a practical strategy for any business. It often examines the internal strengths and weaknesses of the organization and also identifies any potential possibilities. The business can quickly eradicate any threats it could encounter after having examined and identified its weaknesses. Clearly, opportunities and dangers are external elements, whereas strengths and weaknesses are internal factors. How effectively internal factors are managed influences external factors to some extent. For instance, if the organization recognizes its strengths, it will be in a better position to take advantage of the underlying prospects. Conversely, if the organization's weaknesses are thoroughly analyzed, it will endeavor to address them, eliminating any possible threat and vice versa.
SWOT analysis for Microsoft Corporation Company which is the largest Software business is the study. Strengths mainly consider the advantages the organization has. To know exactly the strengths, the management compares the company with the competitors in the market. In this case, the competitors are Apple Inc. However, the Apple Inc developed software that are hard to use, and that is an upper hand for Microsoft. The acquisition of Skype Technologies in 2011 also increased the competitive edge of Microsoft (Mermigas, 2011). It was great in improving the company’s online presence considering there were almost 300million users In 2011 Technologies for $8.6 billion. The years 2011-2012 marked the company’s rebranding of its products and services to adopt the guidelines and ideas of a different design language-Metro. Also, it has good financial performance. The revenues have continually increased over the years. The increased revenues are the reason the acquisition was possible. Further, there are improved customer relations since Microsoft offers a variety of services including consultancy services like cloud-based and training services and other online products like Bing, MSN, and ad Center.
The weaknesses of the company include failure to analyze what to avoid and what to improve. For example, they should consider the different market. It is because each market has various needs that should be handled differently. Also, Microsoft has failed to add specifics to organizational structure. It is through specifying the company structure that it will be easy to identify the different officers of various products. Doing this will apparently enable it to incorporate aspects of strategic business unit structure in the business. Moreover, there are critics on security flaws, in that its Operating System is not strong enough for viruses giving its rivals an opportunity to outfit it.
The opportunities mainly analyses the gaps the business can spot caused by factors like changes in technology and markets, change in population, etc. Microsoft has opportunity to expand globally and also to diversify its products and increase the chain of goods it has currently. It is also moving from moving traditional Personal Computer Operating System to the mobile industry and tablet industry. Mobile advertising too as the company 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 Operating System (TechAssure, 2013).
Threats mainly consider the obstacles the company faces that endanger its existence. Some of threats include stiff competition from the competitors. For Microsoft Corporation, it faces intense competition in the software. Considering that Google and Apple Inc have already taken a position to provide Operating Systems for the phones and Personal Computers, however, it could lose its market if it lags behind in creativity and innovation (Lundy, 2013). Also, there’s continued change in habits and consumer needs, where consumers are moving from buying personal computers and laptops to buying tablets and phones. Furthermore, Microsoft has exposed to Potential lawsuits. Microsoft has been sued before and lost quite a few large scale lawsuits which have cost it a lot of money. However, Microsoft has continued to operate more or less the same way increasing the possibility for more expensive lawsuits to come. Also, their product is too expensive compared to the products being launched they may thus lose customers.
Has brand reputation
Easy to use the software
Strong distribution channels
Strong financial performance
Acquisition of Skype
No specific organizational structure
Criticism over security flaws
Mature personal computers markets
Mobile device industry
Growth through acquisitions
Continued changes in consumer habits and needs
Expensive products compared to competitors
To many competitors
Lundy, J. (2013). Founder Departures: Apple and Microsoft face similar Innovation
Challenges. From https://aragonresearch.com/founder-departures-apple-and-microsoft-face-similar-innovation-challenges/
Mermigas, D. (2011). Microsoft's Skype Deal: The Emperor's New Clothes. From
Seeking Alpha: http://seekingalpha.com/article/270293-microsofts-skype-deal-the-emperors-new-clothes
TechAssure (2013). Growth of the Software Industry Presents Challenges and Opportunity.
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