SWOT Analysis After reading the unit lesson, research a company of your choosing to create a strengths, weaknesses, opportunities, and threats (SWOT) analysis. Please note the importance of picking a

MICROSOFT

Microsoft is a corporation that deals in software and hardware products. Its main field of operation is in the windows operating PC systems. The company is a United States based corporation that conducts its business through retail stores and online services. The company also has a diversified product portfolio that includes developing Smartphone, tablet, and gaming solutions. Microsoft’s entry into these markets has been met with mixed responses from consumers. Additionally, doubling up as a dedicated hardware manufacturer has come with its pros and cons. Below is a SWOT analysis of Microsoft that seeks to outline its positions on various matters and certain area (Jurevicius, 2013).

Elaboration

Strengths

Strengths are the company’s main selling points that give it an edge in the market currently. Microsoft is a well-established company with a vast amount of resources standing at US$176.22 billion as of 2015. This enables the company to meet its current obligations to creditors and ensure business activities run smoothly. It is an indication that the company is not struggling with liquidity matters. In addition, it is clear that Microsoft has a large resource pool which allows the ability to concentrate on making quality products and often at affordable prices. The company is also able to cover large areas of operation and expand when necessary. The market in which this company operates is software development and its stock symbol is MFST. It is a leading company in the technological industry with much investment by the shareholders on its shares. It is listed in the NEW YORK stock exchange. The second company from Dow is Farm Brothers Co. and its stock symbol is FARM. The third company is American Express Co. whose stock symbol is AXP. The fourth company that I have selected is FARO Technologies Inc. whose stock symbol is FARO. Through proper advertising, Microsoft has been able to establish a solid reputation for its quality products, especially the windows operating system. The windows operating system consist of personal computers, tablets, embedded devices and internet of things devices. It also allows features built-in capabilities that allow corporate IT departments to use mobile device management (MDM) software to secure and control devices running the operating system.

Weaknesses

As a multinational corporation, Microsoft is a technology giant. However, this has its downsides. An example is the large market it serves. Having a large market can support business growth yet potentially have negative effects on customer care. Due to a vast consumer pool, Microsoft finds struggles in not having sufficient customer care service personnel. This has resulted in unnecessarily long call waiting times can diminish customer service ratings. This also results in denied services to consumers and overcrowded customer care channels. Furthermore, Microsoft products have had the lack of cross compatibility between their various platforms and software. This means that software developed for the windows phones, the x-box and windows personal computers are significantly different in design that they are not portable across the platforms. This can result in Microsoft losing some of its customers to competing technologies that are contain cross platform compatibility. Microsoft also has had a hard time ensuring that their operating systems are backwards compatible with legacy software and hardware. This can make the company lose consumers who still require these software and hardware that are no longer supported by new operating systems.

Opportunities

Diversification:

Microsoft, as a tech giant, has the ability to branch out and expand its product lines to various markets. The company has done this so far through venturing in hardware development and game console development. This helps it tap into markets that are new and thus potentially improving sales for the company.

Large Market Access:

This is an opportunity since the access to a global market is important in maximizing revenue for the company. The company already has a market it can champion new products to when necessary.

Partnership with green companies and manufacturing green products is an opportunity for Microsoft to expand into the green markets. These are markets that are upcoming and composed primarily of environmentally conscious consumers who buy products that consume less energy.

Strategic location is an opportunity that is critical. Microsoft is located in the United States which is an advantage since the US is a country that values technology and much of its economy is technology driven. As such, the company has potential of growth and flourishing in the economy.

Constant ability for innovation. The technology industry is an industry with countless opportunities. As technology continues to advance so will Microsoft’s ability to innovate and create new solutions.

Threats

These are the various forces that negatively impact a business when not properly addressed. Microsoft faces a number of threats that can be catastrophic to its operations. Such threats are;

Fast software obsolescence rates that can force its products out of the market. The company counters this by being innovative and constantly refreshing its products while also developing new solutions. The company also has strong market rivals that include Apple and Google. On this front, Microsoft continually battles with market competitors meet the technology demands of for new and current consumers. This is especially true on the gaming platforms and the mobile platforms. In one instance, Microsoft has also suffered from poor adoption rates for its Smartphones in contrast to Androids and iPhones. Additionally, the company has had to deal with threats that have manifested in the form of hackers and security holes in its software. These vulnerabilities must be patched at the risk of compromising product operations and having negative impacts on consumers. The company has also been involved in court battles that have resulted in huge fines. An example is the antitrust violation in the European Union where the company was fined a whooping US$1.44 billion (BBC, 2013). These fines and other threats pose a direct threat to Microsoft revenues and profits while also have a potential negative effect on consumer confidence.

Conclusion

Microsoft is technology giant that has deal with the said factors. It would benefit the company to enforce its strengths, limit its weaknesses and improve on them and capitalize on its opportunities. The threats must be avoided when possible or mitigated when necessary.

BBC. (2013, March 6). Microsoft fined by European Commission over web browser. Retrieved August 17, 2016, from bbc.com: http://www.bbc.com/news/technology-21684329

Google.com. (2019). INDEXNASDAQ:.IXIC - Google Search. [Online] Available at: https://www.google.com/finance?q=INDEXNASDAQ%3A.IXIC&ei=2VYSWMClMsXIUfmrlYAN [Accessed 25 Dec. 2019].

Jurevicius. (2013, February 16). SWOT analysis of Microsoft. Retrieved August 17, 2016, from strategicmanagementinsight.com: https://www.strategicmanagementinsight.com/swot-analyses/microsoft-swot-analysis.html

Microsoft. (n.d.). Retrieved July 17, 2016, from microsoft.com: https://www.microsoft.com/