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SWOTanalysis is the understanding of the strength, weakness,opportunities and threats that a company faces. The factors can bemacro or micro depending on the enterprise. In this, we will analyzethe SWOT analysis of Microsoft Company, a company that was begun byGates and Paul Allen in 1975.
Strengthsfor Microsoft include the brand name.Its brand and having been therefor a very long time helps it stand out against competitors in thetechnology for the strength that Microsoft has been the differentpackages and products it has from various software that can be usedby the different organization in different fields therefore givingthe consumers different tastes and preference.Having been for longMicrosoft has invested heavily in research and development.The futurehas shown that companies that invest in research and development arealways better in mitigating the loss or any risk that may come up.Strength is products which are easy to use for many consumers allover the world.
Theyalso have strong distribution channels considering they have been inthis industry for long making them first among equals.The loyalty tothe brand.Most of the people while growing up knew Microsoft as theonly company and its association with Bill Gates has always been aplus for them. Another strength is when Microsoft bought Skype thishas been an excellent thing for their portfolio considering thatSkype has over three hundred million customers this will directlyimpact positively in the Microsoft financial statements.
Havinghad the strength, there is weakness that remains a challenge toMicrosoft. Though Microsoft has a stable financial system over theyears, it has acquired businesses that have not been profitable andthis lead to decreased revenue and lack of growth for the company. Italso relies heavily on hardware manufacturer therefore, standing ahigh risk if other cheap competitors can come into play this willdirectly affect their marketshare.Its programs have been accused ofbeing prone to hacking. The 21st-centurysecurity is an important issue, and any company that does not getthings right stands a chance of losing out on its growth. Innovationis key in the tech-savvy world, but Microsoft has been slow toinnovate leaving their customers with no choice but to try othercompetitors.
Theopportunities that Microsoft has a many and cannot be ignored. Cloudcomputing is needed it, and if Microsoft can expand their services inthis sector and also the growth of social media, they will have apositive inflow for this. The digital world is advancing at a firstrate, and mobile advertising should be an excellent option if theyare looking to growing more of their revenues and also financialmuscle Microsoft can consider investing in startups. Startups likeUber have shown that the world is still open to noble ideas andpeople are ready to embrace it.
Someof the threats for Microsoft include increased competition from othercompanies such as Linux.Microsoft cannot ignore the fact that this isnot like thirty years ago where they had no competition they need tomarket and always use their best practices to win customers. Thesecond threat is that the customers have different habits andpreferences and if not proper research is done then they might not beable to match up with the customers’ expectations.
Linuxhas been credited with having the best security programs for itsproducts and organization may prefer this however their programmers’are not easy to use giving Microsoft an advantage for this. Linux isalso expensive compared to Microsoft products whose products areaffordable.