SWOT Analysis of Microsoft – SWOT of Microsoft Corporation ❤️

Microsoft SWOT Analysis 2022

If you are looking for a SWOT Analysis of Microsoft, then you are landed at the right place here. This report will represent all the information about the Microsoft SWOT Analysis 2022.

The SWOT Analysis is a tool for discovering organizational strengths and weaknesses and the threats and opportunities, which affect the business strategy.

swot analysis of microsoft

We are living in digital life, where new technology is expanding day by day. Technology is important because it makes you feel more secure in every area of life for both personal and business reasons.

Before going to deep-dive in Swot Analysis for Microsoft Company, let’s look at the Microsoft corporation overview.

Microsoft Background:

Microsoft is a multinational technology company in America. Its founders, Gates, and Allen derived the Microsoft name, from the words microcomputer and software.

Company Name Microsoft Corporation
Type Public
Logo Microsoft Logo
Industry Served Computer software, Electronics
Founded April 4, 1975, in Albuquerque, New Mexico, U.S.
Founders Bill Gates & his friend Paul Allen
Headquarters One Microsoft Way, Redmond, Washington, U.S.
Area served
Worldwide
CEO
Satya Nadella
Main Competitors
Apple Inc., Google Inc., Samsung Co. Ltd., IBM Corporation, and many others.
Annual Revenue US$143 billion (2020)
Net income
US$44.3 billion (2020)
Number of employees
166,475 (2020)
Website www.microsoft.com

SWOT Analysis of Microsoft 2022

Conducting a Microsoft SWOT analysis 2022 is a good idea that helps the company to identify its internal Strengths and Weaknesses, and external Opportunities and Threats.

Strengths of Microsoft

  • The Microsoft brand is one of the strongest as well as the 4th largest tech company in the computer hardware and software market.
  • Due to its wide products and services like computers, software, consumer electronics with that the company’s ability to attract customers in the international market.
  • It is allowing lots of customer support alternatives and has a line of stocks that generally work as promoted, instead of providing much free software.
  • Reason of its strong business, the company has got an extremely strong financial position
  • Microsoft software has helped users to reach a high degree of productivity and efficiency that has led to gaining trust among the brand’s users.
  • It has been growing rapidly right after it was founded. The company has become one of the most influential organizations worldwide.
  • To understand the user and computing machine’s language it has created the Operating System which is easy to interpret. Nowadays Windows is the most used operating system worldwide.
  • The company’s market revenue is US$143 billion in 2020(year) and its annual net income of about US$44.3 billion US Dollars reflects customer satisfaction with Microsoft.

Weaknesses of Microsoft

  • Microsoft’s primary weakness is a lack of innovation in products. This affects Microsoft’s strength to sell new versions of Windows and remain rivals with more advanced Apple products.
  • Some of Microsoft’s acquisitions were successful and brought not just incomes and products. On the other side, many acquisitions were made by Microsoft, but soon wind up or stripped, for instance, LinkExchange, WebTV, Danger.
  • It is trapped in various legal proceedings claims relating to product design, manufacture and performance liability, employment issues, or intellectual property rights. 
  • The main Microsoft product like Windows OS which has been massively criticized for being so weak against different viruses’ attacks compared to other OS.
  • It is not able to control the illegal use of their software business especially operating systems in developing nations like China, India, etc.
  • Windows Operating System has been reportedly attacked several times by hackers. Microsoft is in a vulnerable state because of increasing cybercrime cases.

Opportunities of Microsoft

  • It has sufficient resources & funds to continue as a business leader in innovation in technology.
  • Recently, it has had a new opportunity to expand in the market and grow faster by acquiring LinkedIn that has proved an effective acquisition.
  • By reducing the prices for its products and services, it would help to get higher sales and thereby increase its market share.
  • People are extremely interested in the market of smartphones, notepads, and laptops. So, they need to focus on that so they can influence the market more. In addition, Microsoft should start focusing on Wearables which is the new trend amongst tech enthusiasts.
  • Lastly, Microsoft has opportunities to improve the attractiveness of its products through continuous improvement of its security features.

Threats of Microsoft

  • The company faces strong competition in all its sections. Its key rivals in Windows Live software and services contain Apple, Google, Facebook, Amazon, and Yahoo!. The company’s server and tools products compete against the related offering of IBM and Oracle.
  • In the world, Microsoft has been losing millions of US Dollars just for privacy issues. This is a constant threat to the company and steps should be taken to prevent this.
  • Statistics differences in Microsoft’s workforce displayed inequality in its recruited employees. The number of women and minorities working was considerably low, fuelling severe criticism and arguments toward the company’s HR policy.
  • Multiple new open source projects have successfully entered the market like Linux OS and Open Source Office, etc which offer similar services for free. It can threaten Microsoft that offers these products at a high rate.

There are limitations to SWOT Analyses for Microsoft Corporation

While it is true that the SWOT analysis is extensively used to plan strategic strategies, However, the analysis has some drawbacks.

  • Certain abilities or aspects of an organization could be both a strength as well as a weak point at the same. This is among the most important limitations in SWOT analyses. For instance, changing environmental regulations can be an issue for the company but however, it could also be an opportunity in the sense that it allows companies to be in a position to compete with its competitors or gain an advantage over its competitors if they are could develop its product quicker than competitors.
  • SWOT doesn’t provide a way to gain competitive advantages and therefore it shouldn’t be considered a solution in and of itself.
  • The matrix is merely an initial point of reference for an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but not any implementation plan that is based on the Microsoft Corporation’s strategic competitiveness. Microsoft Corporation
  • It is a static evaluation that analyzes the existing conditions and a small number of potential modifications. As the environment, circumstances as well as threats, and strategies evolve, the dynamics of the competitive landscape will not be apparent in one matrix.
  • SWOT analysis could cause a company to focus too much on one external or internal aspect when formulating strategies. There are interrelations between the important external and internal elements that SWOT doesn’t reveal, which could be crucial in determining strategies.

A SWOT Analysis that is Weighted by the SWOT of Microsoft Corporation

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the management of corporate determined to give an appropriate amount of weightage for every weakness and strength of the company. 

They also consider the likeliness of events that will occur in the near future and the impact they will be on the company’s performance.

This is referred to as the Weighted SWOT analysis. It’s better than simple SWOT analysis as With weighted SWOT analysis Microsoft Corporation managers can focus on the most important elements and ignore the less crucial ones. 

This also helps solve the long list issue that causes organizations to make an extensive list, but none is considered to be important.

Recommendations

To remain the leading software provider, Microsoft needs to work on its weak aspects and embrace opportunities. Few recommendations are given below in this regard:

  1. Upgrade its software and bring innovation. Microsoft must take radical steps to successfully embrace the future of innovation.
  2. Continue enhancing its brand reputation through effective marketing tools.
  3. Update its internet browser market and take initiatives to increase the market share in this segment.
  4. Build more competitive advantages to compete with technology rivals like Google and Apple.
  5. Increase partnerships, strategic alliances, and acquisitions to strengthen its market standing.
  6. Resolve the cybersecurity issues and address the global cyber thefts by advancing its security network systems.
  7. Decrease the prices to reduce the illegal use of its software systems.
  8. Diversify its business to enhance potential growth and market share.

Final Words

Thanks for reading my post, which is about the SWOT analysis of Microsoft 2022 indicates the strengths of the brand in which the brand is good and the way it stands away from its competitors, its weakness that halts the brand to perform well and should focus on improving.

In further, you can also check the SWOT analysis of other brands like Amazon, Reliance, Walmart, etc.

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