Yet another day, yet another American Tech Giant. Yes, we are talking about the former World’s Richest Man, Bill Gates and his brain child, Microsoft Corporation. Today, this ‘Big Dog’ in the technology industry has impacted the lives of people so much that everyone knows their name. Old Friends, Bill Gates and Paul Allen founded Microsoft on the 4th of April, 1975 naming Gates as the CEO (1). After that there were no turning back. Microsoft’s major breakthrough was entering the Operating System Market by making their own version of UNIX which was named XENIX. Now, let us dig into the Microsoft SWOT analysis.
SWOT Analysis of Microsoft Corporation: The Company with Sheer Excellence
Microsoft has been the pioneer in the OS world. It started its journey with the hard work and dedication of Gates and Allen. Now with a huge army of professionals and happy customers, Microsoft has become a household name in the world. Now let us explore the SWOT of the company.
The Strengths of Microsoft: The Foundation of Excellence
The Tech Giant has been playing with the strengths from the word go. No wonder the company has come a long way. The Strengths of Microsoft are as follows:
Fourth Largest Tech Company in the World: Microsoft is the 4th largest Tech Company in the world (2). It has been growing rapidly right after it was founded. The brainchild of Gates and Allen has been pioneering in Operating Systems, Software, Innovation, Computing devices and more. The company has become one of the most influential organizations worldwide.
The King of OS: Microsoft has brought the major breakthrough when they resolved the link between the user and the computing machine by creating an Operating System which is easy to interpret. Today Microsoft Windows is the most used Operating System worldwide. The first Windows, Windows 1 was introduced way back in 1985. (3)
Gigantic Market Reach: Microsoft has been a show stopper when it comes to the market influences worldwide. This celebrated company generates a market revenue of 125.84 Billion USD in the year 2019 and the Annual profit was almost 39.24 Billion US Dollars. (4) This reflects how much the consumers are satisfied with Microsoft.
Trustworthy Brand: Microsoft has been a trustworthy brand in the tech market. People tends to buy or subscribe their products and they are overall satisfied with the results. Microsoft core concept of providing customer support is to be flawless at every point and be what they are. This is the main factor.
The Weakness of Microsoft: The Flaw
You might be thinking like, Wait! This Company has weaknesses! But I hate to tell you, they do. Those are as follows:
Over-saturated Market: Microsoft has been producing operating systems, office and support software and equivalents supplies. But the market has been a bit stretchy over the past few years as Microsoft Corporation been not too versatile in terms of their products. Too much tendency of sticking to the core products might have been the case.
Lack of Innovation: Why fix anything if it is not broken has been the main mantra of Microsoft from the past encounters. That’s why lack of innovation and versatility has been seen in their products. The upgrades and newer versions only comes with some minor fixes and some slight additions in the field.
Cyber Security Issues: Microsoft has not been in the peak of total cyber security backup as we speak. This company has failed to deliver trustworthy cyber security solutions to their consumers. As a result, the consumers has to seek for cyber security solution provided by other companies and firms. This is a shame.
Failed Ventures: Perhaps Microsoft has not been in the best of forms when it comes to joint ventures and acquisition of companies. When Microsoft acquired Nokia Mobiles and started making Windows oriented OS and smartphone, it became a hit. But gradually lost to IOS and Android market as they were in the peak.
Opportunities of Microsoft: The New Sunlight of Hope
There is always a window of opportunities that are up for grabs. Those are described in the following points:
Hardware Component Market: Microsoft has been a household name in the world. They have been making ground breaking software, I admit that. But it is high time that they start making hardware components as the hardware market heavily relies on them. What better way to capture the market just by making their own hardware!
Smartphones and Wearables: The Smartphone market is yet to be captured by Microsoft. Yes, they have tried and failed earlier. But they need to focus on their flaws and revamp the strategies so that they can influence the market more. Wearables are the new trend amongst the tech enthusiasts. Microsoft should start focusing on that too.
Upgrade Internet Browsing Software: The Internet explorer has always been a setback in the Windows Operating System. Microsoft Edge has also failed to shine in the latest editions whatsoever. Companies like Google and Apple has great internet browsers. It is high time for Microsoft to develop one as well to be a full package overall.
Cloud Computing Possibilities: Microsoft has been left behind in the cloud computing arena by Google, IBM and Oracle respectively. Microsoft has all the resources to pull off yet another revolution like cloud computing or computing only with peripherals. Microsoft should start developing their One Drive and enable their customers to use the clouds.
You may Also like to read the SWOT Analysis of IBM
The Threats for Microsoft: The Marathon Runners
The threats are always been a constant headache for Microsoft. The threats are as follows:
Companies Catching Up: Companies like Facebook, Intel, IBM and Oracle are some of the most prominent companies out there who are working relentlessly just to surpass their biggest rival on the planet, Microsoft. Microsoft has always been fully aware of that threat. The company has been beaten in various sectors by the competitors.
Piracy Concerns: Only in India, Almost 91% of the computers are loaded with pirated Microsoft Software and Operating Systems (5). In the world, Microsoft has been losing millions of millions of US Dollars just for the privacy. This is a constant threat to the company and steps should be taken to prevent this.
Gender Bias: In the year 2018, the percentage of male workers and professionals in Microsoft is 72.3% (6). Such Bias recruitments are a real threat for a company that has been working as a model and Idol to the world. Poor percentage in hiring women in workplaces will catch eyes and result in sheer criticism.
Gay Declination Controversies: In XBOX, Gay gamers are banned from going live on the servers took a rough turn and a wild storm burst out. (7) Many news and media covered this story and the company had to face criticism. Such incidents are a threat to the company’s reputations. However Microsoft was quick to recover the accident.
Recommendation
Microsoft Corporation has been the Torch Runner of the great technological marathon. People trusts and believes in Gates and his company. Microsoft is keen to change the world and make it a better place. Gates Insider, Gates Foundations has been working hard to make that dream possible. As far as the company is concerned, a little here and there, some quick decisions and leaderships in certain sectors can take the company to unimaginable heights of achievements. Microsoft should start rebuilding their shortcomings and focus on new and innovative opportunities available in the market.
Related: SWOT Analysis of Google & SWOT Analysis of Amazon
Reference
- http://news.bbc.co.uk/2/hi/business/5085630.stm
- https://www.rankingthebrands.com/Brand-detail.aspx?brandID=4
- https://www.theguardian.com/technology/2014/oct/02/from-windows-1-to-windows-10-29-years-of-windows-evolution
- https://www.statista.com/topics/823/microsoft/
- https://economictimes.indiatimes.com/tech/software/microsoft-tests-show-91-new-pcs-from-india-loaded-with-pirated-software/articleshow/66475487.cms
- https://www.cnet.com/news/microsofts-first-in-depth-diversity-report-shows-progress-remains-slow/
- https://kotaku.com/thegayergamer-gets-xbox-live-ban-microsoft-explains-390593
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