SWOT Analysis of Microsoft – SWOT of Microsoft Corporation 2022 ❤️

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.

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 too deep-dive into 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

Introduction

The announcement of the changing of the leadership of Microsoft has raised speculation regarding possible strategic direction changes, as well as ignited expectations that the company with a pioneering history and its famous founder who was struggling in recent times could get their action in the right direction. 

The subsequent SWOT Analysis puts the strategic decisions in context and analyzes the circumstances in which the company is today. 

The subsequent discussion should be considered in the wider perspective of the interaction between the internal dynamics and the external business forces that impact Microsoft in its pursuit to return to its leadership position in the market.

The Development Timeline from Microsoft

1975 Bill Gates and Paul Allen established Micro-soft.
1981 Microsoft has released MS-DOS to be run on IBM personal PCs.
1985 Microsoft has released the first version of its operating system Windows 1.0. Windows 1.0
1995 Microsoft launched Windows 95 and Windows Explorer.
1998 The company has released Windows 98.
2001 They introduced Windows XP and a video gaming brand, which is called Xbox.
2007 Microsoft has released Windows Vista.
2009 Windows 7 was released by Microsoft.
2015 Microsoft has released Windows 10.
2016 The company purchased LinkedIn in the amount of $28.2 billion.

Also, Related some Articles:

SWOT Analysis of Microsoft 2022

Microsoft SWOT Analysis is an approach Microsoft can employ to comprehend the external and internal factors of the business. 

While internal factors comprise the strengths as well as weaknesses of an organization, external elements comprise threats and opportunities. 

This makes it simpler to identify the strengths and weaknesses of a business by conducting this study. 

A SWOT analysis will assist the business in identifying potential dangers and in preparing to manage the potential risks.

Strengths In The SWOT Analysis 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, and 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 In The SWOT Analysis 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 income and products. On the other side, many acquisitions were made by Microsoft, but soon wind up or stripped, for instance, LinkExchange, WebTV, and 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 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 its 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 In The SWOT Analysis 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 which 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 In The SWOT Analysis 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 against 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 which offers these products at a high rate.

Also, Related some Articles:

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 their competitors or gain an advantage over their 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 the corporate determined to give an appropriate amount of weightage to 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 a simple SWOT analysis as With a 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.

References

FAQ of Microsoft

What are the strengths of Microsoft?

Strengths. Microsoft’s greatest strength is its high brand recall among all personal computer users around the globe. Anyone who has even a passing knowledge of computing will be familiar with Microsoft and Bill Gates, its legendary founder.

Does Microsoft Word have a SWOT analysis?

Microsoft Word is not designed to be used as a diagramming tool. It can, however, be used to create SWOT diagrams. This is a text-based chat, so it’s easy to create a SWOT analysis template using Word. Word can be used for SWOT analysis, but there are also some disadvantages.

What are some Microsoft weaknesses?

Low innovation – Microsoft is having a hard time growing its hardware product sales, such as surface pro computers or phones. It has been slow to adopt advanced technology and innovation, while Apple, Google, and Amazon are rapidly blazing new trails.

What is Microsoft’s competitive advantage?

The Key Takeaways Microsoft has what Warren Buffett refers to as a strong moat. These competitive advantages protect Microsoft from its rivals and allow it to make large profits. Microsoft’s intellectual property–specifically, its patents and proprietary software code–contribute to the depth of its moat.

What is Microsoft’s reputation?

Microsoft was ranked ninth in the 2021 Global RepTrak 100 rankings. RepTrak ranks companies according to their corporate reputation in 15 different countries. This year, Sony was ranked 10th, Google 15th, and Apple 46th.

Why is Microsoft slow innovating?

Microsoft’s slow innovation is a major flaw (Kang 119). Customers complain that Microsoft does not offer new hardware and software. It prefers to upgrade existing products. Apple and Microsoft dominate the production of operating systems that are state-of-the-art.

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.

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

For more posts visit our website: https://swotanalysis.website/

Leave a Comment