Microsoft Corporation SWOT Analysis

Paper Type:  Research paper
Pages:  7
Wordcount:  1686 Words
Date:  2022-05-17

Introduction

Microsoft Corporation should retort to the inner and outer strategic factors which are only possible to identify through SWOT analysis. This is a device appropriate for determining this company's weaknesses, threats, strength, and opportunities (Ghaffari et al., 12). SWOT analysis, in the case of Microsoft Company, will stress the essentiality of distinctive product innovation, organization diversification, and cybersecurity. By the help of these approaches, Microsoft may attain long-term development in both software and hardware market. The company should also preserve efficient reactions to handle various factors revealed by the SWOT analysis to be performed. Furthermore, the Microsoft Company SWOT analysis will highlight the required plans to stir it toward additional diversification and innovation of computer software and hardware commerce. Microsoft will also expand its determinations to recognize weakness and threats which affect it negatively and formulate appropriate strategies to solve them.

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SWOT Analysis

Strengthens

  • Prevailing brand image
  • Alignment of the product with affirmative externalities
  • Durable alliances with various organizations Weaknesses
  • Cybercrime vulnerability
  • Piracy of some products
  • Presence of famous computer hardware components

Opportunities

  • Business diversification
  • Computer hardware commodities innovation
  • Durable protection against cybercrime Threats
  • Piracy
  • Cybercrime
  • Strong completion

Strengths

This field of SWOT Analysis will determine the Microsoft internal strategic or strengths factors which lead to its development and resilience (Ghaffari et al., 13). Its persistent prosperity is partly centered some of these strengthens such as prevailing brand image, alignment of the product with affirmative externalities, and durable alliances with various organizations

Microsoft trademark for long has been acknowledged as the strongest and leading dealer in computer software and hardware market. Furthermore, this is its most crucial strength leading to its capacity to attract and retain clients, particularly, those who observe the strength of a brand with respect to reliability. It additionally benefits from affirmative externalities with its current commodities in the markets. For instance, while many third-parties software establishers develop systems for IBM PC-attuned OS, Microsoft's corporate Windows OS becomes famous. Moreover, the alliances' strength with various companies leads to Microsoft's ability to impact the entire market in its support (Ghaffari et al., 13). For example, the corporate may develop a coalition with a hardware or software producer to manufacture commodities which utilize Windows operating system. Therefore, the strengths enjoyed in this field of the Microsoft SWOT analysis demonstrate that the corporation has the durable background to compete with various big companies in software and hardware universal industry.

Weaknesses

Microsoft weaknesses or internal strategic factors which reduce or slow down its business growth are defined in this SWOT analysis area. Microsoft managers should attend to this weakness such as cybercrime vulnerability, piracy of some products, and presence of famous computer hardware components (Ghaffari et al., 14)

The company's commodities are susceptible to cybercrime. For instance, the Windows OS continuous being an aim of numerous cybercrime attacks worldwide. This factor acts as a crucial weakness since it restricts the attraction of the Microsoft commodities. Due to this, cybersecurity is an artifact feature of competition among corporates, particularly in the software and hardware industry. Conversely, piracy of some commodities acts as a major weakness since it may decrease the Microsoft brand strengthens (Ghaffari et al., 14). Furthermore, the corporate's commodity portfolio reveals that dependency mainly on software goods that weakens the enterprise against its competitors which have famous software and hardware commodities present in the market. Centered on strengthens shown in the SWOT analysis matrix, the corporation requires to enhance its products characteristics and increase its hardware growth energies to make sure it attains a competitive edge.

Opportunities

This sector of SWOT Analysis matric concentrates on chances or opportunities which may back the business development. The principal opportunities identified and essential in the Microsoft Corporation are business diversification, computer hardware commodities innovation as well as durable protection against cybercrime (Ghaffari et al., 15)

Microsoft Company is mainly a software enterprise which strongly depends on the fame of its Windows OS. Due to this, it has the potentiality to develop centered on diversification. For instance, it can diversify via new enterprises growths or merges and acquisitions to create activities in the new industries or markets. Through this manner, the corporation may take chances of various business development venues. Computer hardware commodities innovation is additionally a Microsoft Corporate opportunity. This is to raise the income of the company through hardware sales (Ghaffari et al., 15). Currently, the hardware of the corporation commodities is not strong competitively compare to those of other companies in the computer hardware industry. Furthermore, Microsoft has opportunities to increase the attraction of its commodities by persistent growth of the security aspects. Therefore, the opportunities demonstrated in the Microsoft SWOT analysis matrix reveal the requirement for diversification as well as commodity growth.

Threats

Various threats which decrease the corporation are also recognized in the SWOT analysis matric. Strategies of Microsoft should address the key threats such as piracy, cybercrime, and strong completion.

Cybercrime is the primary threat experienced in computer technology industry. For instance, cyber-attacks may compromise or cripple Microsoft clients and organizational procedures respectively. Furthermore, piracy is also a core threat widespread in most of the developing nations. Additionally, strong competition establishes market forces which may threaten the growth of Microsoft as the leading and the largest corporation in the entire market (Ghaffari et al., 16). For instance, various companies' diversification which currently provides OS, various computer hardware commodities, and the increasing freeware popularity, restrict and likely decrease the corporate business. Besides, this section of SWOT analysis matrix demonstrates the importance of commodity improvement and uniqueness.

Strategies to Correct Weaknesses and Threats

Microsoft Company has the essential enterprise features to remain as the biggest and leading participant in the computer software and hardware industry. The positive externalities and strong image brand as the main factors leading to such rant in the market. It is thus strategized that the corporation must escalate its collaboration with various companies to develop the positive externalities.

Various threats and weaknesses faced in the enterprise require strategic approach in the Microsoft Corporation. For instance, the corporation should persist innovating to grow its commodities which are more susceptible to different forms of cybercrime. Diversification of Microsoft Company business is another strategy to increase or boost its capacity to grow, furthermore, it could be appropriate if the corporation raises its computer software and hardware development energies to escalate its income obtained for this business area.

Innovative Ideas to Assist Microsoft Gain Competitive Edge

For Microsoft Corporation to gain a competitive edge at a universal market, it should introduce the following new innovative concepts in its operations.

Leaning on Clients

If Microsoft wants to counter competition, it must have an in-depth comprehension of the challenges facing their customers. It should embrace techniques, for instance, client empathy may which have proven to be successful in other big corporations such as Apple to determine new gaps which there are required to create value (Lepak et al., 180). Furthermore, this client insight may be the basis for the company to understand the quick prototyping, partnership designs with various users as well as growing their commodities and organization model.

Thinking Like a Designer

The CEO should be on the frontline to ensure Microsoft managers receive training to ensure they make appropriate decisions. Designer thinking necessitates a distinct set of devices (Lepak et al., 181). Furthermore, this is where Microsoft will be prosperous in universal competition market if it has unique products from those of their competitors such as Samsung.

Leading the Path

The CEO should brand innovation a precedence. He should take risks aimed at establishing an innovation culture. For instance, he should motivate Microsoft Corporation staff to spend like one day in a week or fortnight to search for new products or services to produce or give a heroic reward to the most innovative idea among the employees (Lepak et al., 181). Furthermore, this acts as a new innovative idea aimed at encouraging more others for various staffs within the corporation.

Non-Financial Incentives Strategies

They are appropriate, particularly where Microsoft Corporation does not have adequate resources to increase compensation for its employees. They are crucial in motivating workers since they introduce emotional and psychological fulfillment to employees (Bari, Uzma & Almas, 2555). These comprise various strategies such as:

Recognition

It is essential that Microsoft Corporation recognizes employees' hard work. Even appreciation words from the CEO and various supervisors would encourage the staffs in maintaining similar performance level or act even well. Staffs view an individual thank word as the most form of recognition trailed by handwritten appreciation from the CEO.

Challenging Work

Employees who are naturally dynamic, do not reveal a preference for routine occupations. They are often ready to take challenging tasks (Bari, Uzma & Almas, 2555). Besides, a challenge may be introduced via task redesigning, mentoring, or job enrichment. This is possible through comprehending the abilities of each employee in Microsoft Corporation and assign them tasks accordingly.

Providing Job Security

Employees particularly those appointed by Microsoft Corporation can encourage them to earn more than offering them job security. Even though they place more energies on their individual tasks, with the absence of job security acts as a major threat to their performance. Where the CEO provides these workers with job security, they will be more committed to adding more to the company.

Employee Empowerment

To increase workers' productivity, Microsoft Corporation should involve them in certain decisions. For instance, where the company management has desires to introduce a new product or service, employees' viewpoints should be taken into consideration before the ultimate decision arrives. This will enable that the management evades unilateral choices on such matters (Bari, Uzma & Almas, 2555). This will motivate workers to produce more when such decisions are put to practice.

Article Critique

The article, The BlackRock Letter Sets Ambitions is a form of a commentary article. It comments on a letter written by Larry Fink, the CEO of BlackRock Company. Pozen (2), is the primary author of the article published in Fortune Magazine on February 9, 2018. Pozen main purpose of writing the article was to demonstrated the approach CEO should follow to attain the established ambitious objectives.

It is precise from the start that the article addresses two conflicting issues. These are whether companies should follow...

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Microsoft Corporation SWOT Analysis. (2022, May 17). Retrieved from https://proessays.net/essays/microsoft-corporation-swot-analysis

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