Question

SWOT Analysis for Microsoft

Answer 1

MICROSOFT-

A company which has its own place in IT industry. Almost, every computers across the world is using MICROSOFT OPERATING SYSTEM, and all the services.

SWOT ANALYSIS- SWOT ANALYSIS is the proces by which a company's or any other organisation's strength, weakness, opportunity and threats can be analysed.SWOT stands for S( Strength) , W(Weakness),O( Opportunities) and T(Threats).

SWOT ANALYSIS OF MICROSOFT:-

From the financial statement of 2017-

STRENGTH:-

1) GLOBAL PRESENCE- Microsoft is a global brand, it is operated across the world, more than 190 countries and this is the major strength of Microsoft. Its global use of Microsoft operating system etc products is the major source of higher sales. Microsoft Windows operating system and its software is being used on a very large number of devices globally . It's global presence is its major Strength of all.

2) LARGE PRODUCTS AND SERVICES-

Microsoft is a large product protfolio as compared to its nearest competitors including Apple. Microsoft provide a large number of services like operating system, cross-device productivity application, server application, business tools , software development tools , games and training and certification of computer system developers etc. This large number of services gives Microsoft a superior name in the world.

3) CLOUD BUSSINESS- The cloud business has grown very fast in last few years by a huge investment in innovation. Higher demand of cloud services lead to higher growth of cloud business brands like Microsoft and Apple. Its revenue is growing by providing large number of cloud services.

4) INNOVATION- In today's era, Innovation is the key to success. Innovation on the services like cloud services and computing services fuels to growth . Microsoft invests huge in research and development. Microsoft is keep working to stay ahead of its competitors in several areas of Accounting intelligence and mixed reality like gaming and knowledge work through providing experience data.

WEAKNESS:-

1) DECLINING PC MARKET - Due to growing technology, and advance devices and gadgets, PC demands tends to declining . Everyone demands for the advance devices like smartphones and tablets . Smartphones and tablets sales decline the PC market. Since, Microsoft is a major provider of software and devices , it is found that it's sale is affected.

2) SLOWER IN TERMS OF INNOVATION:-

Microsoft is the most widely used brand but it lacks in innovation . In recent years, Microsoft invest in research and development. But it's innovation is slower than the other IT brands like Google . In innovation, Microsoft is slower as the search engines of Microsoft is not as effective as the search engines of Google and its share in search and online advertising industry is much smaller than Google .

3) SMALLER ADVERTISING MARKET SHARE-

Microsoft's advertising revenue is grown in recent years but it's market share of advertising is small so it's a major weakness of Microsoft.

OPPORTUNITIES:-

1) INNOVATION AND ARTIFICIAL INTELLIGENCE-

INNOVATION AND ARTIFICIAL INTELLIGENCE are the two most important key towards the growth of Microsoft. If Microsoft invest in innovation, it will give huge rate of return as today's era, innovation is the best key to success, innovation on its products and services increases its sale and it will give a superior growth.

2) ACQUISITION AND PARTNERSHIP- In recent years, Microsoft acquired Nokia which gives Microsoft a large number of customers and to new advertising opportunities. Acquisition with the good company which provides a fruitful acquisition allowing it to connect with large customers base and to new advertising opportunities.

3) AFFORDABLE SERVICES- There is no doubt that Microsoft is the biggest provider of services which helps in lots of our work and its services are spread across the world . This global presence of Microsoft makes Microsoft a superior brand and it's prices of services is also so affordable that every one can afford it.

3) THREATS-

1) LEGAL ISSUES AND POOR REGULATORY ENVIRONMENT- Microsoft legal issues are complex and it hampers the expansion and faster growrh . Technology industry also has concern about safety and privacy increased after Facebook data scandal. Data related regulations are creating heavy pressure in IT industry like Microsoft. It's major threat for Microsoft.

2) HIGH COMPETITION - Microsoft is seeing heavy competition which lead to higher cost related to marketing research and development and operational cost which increase the cost reduce the profit.

CONCLUSION-

MICROSOFT is fast growing, large International technological brands led by CEO Satya Nandella. While declining PC industry might have hurts it's profitability on the other side, it grows from cloud base services and gaming. Microsoft invest a huge amount in Innovation and growing of large range of products and services, it adds to faster growth . To find a faster growth the brand can invest in acquisition which provides a large number of customers which give Microsoft a superior place in market which increases its brand name.