Company Overview
Microsoft Corporation is a $234.5 billion dollar company engaged in software licensing, support and developing of a wide array of software products and services. The company is also engaged in manufacturing gaming and computing electronics including a sub-division for corporate solutions software and services. Founded in 1975 by Bill Gates, the company is voted as the second most valuable company in the world with annual average revenue of $72.93 Billion. Microsoft Corporation is headed by Steven Balimer as CEO and currently headquartered in Redmond Washington in the United States. On September 22, 1993, the company was incorporated and went public, which paved the way for further expansion of its existing product portfolio (researchandmarkets.com, 2013). Microsoft Corporation is divided into five main business segments namely Windows and Windows Live, which houses major operating systems and productivity software products. The other business divisions are made up of server and tools, Online Services division, Entertainment and devices division, and Microsoft Business Solutions division. Among the major product proponents of Microsoft as a developer are video games, productivity software, business applications, and hardware such as Xbox 360, Kinect, and other gaming accessories (in.reuters.com, N.D.).
The company also acquired as collective number of companies that were integrated in its current product line such as Skype Global, which was acquired in October 13, 2011. The company also ventured into mobile computing through the introduction of cloud computing and Windows 8, a smartphone operating system used for Nokia Lumia line (forbes.com, N.D.). Given the key details on Microsoft Corporations business, the elements of SWOT analysis exists in the company’s current product portfolio. It is apparent that the point of analysis should be made on the Software (Windows) division because it houses the company’s flagship products.
SWOT
Strength
- A wide range of product portfolio
- Consistent revenue increase
- Strong product security and intellectual property
Weaknesses
- Legal proceedings
- Increasing debt
- Decreasing brand equity
Opportunities
- High popularity of smartphones
- Growing demand for cloud computing
- Strategic brand acquisitions
Threats
- Risk of product tampering and piracy from private users
- Highly competitive market with strong competitions such as Apple Inc.
- Rapid technological advancements that are difficult to adopt
Primarily, SWOT analysis is an important concept in organizational management that can be used as a tool that will guide the organizational leaders in the decision-making process. Enhancing the prevailing organizational strategies and operations require comprehensive diagnosis of the elements that are imperative to the company’s future success. Important decisions are made to accommodate organizational, operational, and business strategies change. However, SWOT analysis is detrimental to the process of making such decisions because it provides a clear perspective on the weak areas in the business that needs to be addressed. In addition, the prevailing strength of the company is a significant asset that the company can utilize to model new business approaches. The external environment, which is one of the elements diagnosed by SWOT analysis, has a profound effect to the business particularly when current operations and strategies were not properly aligned with the on-going trends. Furthermore, the internal aspects of the business are not always in synch with the company’s business objectives and SWOT analysis is an important tool that helps the company to identify such internal weaknesses to enable a much proficient operational approach.
References
Euromonitor.com (2014, January). Microsoft Company Profile - SWOT Analysis. Retrieved February 22, 2014, from http://www.euromonitor.com/microsoft-corp-in-toys-and-games/report
Forbes.com (2013, May). Microsoft on the Forbes World's Most Valuable Brands List. Retrieved February 22, 2014, from http://www.forbes.com/companies/microsoft/
In.reuters.com (n.d.). Profile: Microsoft Corp (MSFT.O). Retrieved February 22, 2014, from http://in.reuters.com/finance/stocks/companyProfile?symbol=MSFT.O
Researchandmarkets.com (2013). Microsoft Corporation (MSFT) - Financial and Strategic SWOT Analysis Review. Retrieved February 22, 2014, from http://www.researchandmarkets.com/reports/1291204/microsoft_corporation_msft_financial_and.pdf
Strategicmanagementinsight.com (2013, February 25). Microsoft SWOT analysis 2013 | Strategic Management Insight. Retrieved February 22, 2014, from http://www.strategicmanagementinsight.com/swot-analyses/microsoft-swot-analysis.html
