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Microsoft Case Study Analysis

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Microsoft Case Study

Microsoft is a company that was founded in 1975 by Bill Gates and it has become the largest information technology IT company in the world today. The revenue of this company has seen a rise since 2005 and even though the company did have a string of bad downfalls in the early 2000s, it managed to undermine future growth. This is a company that specializes in personal computer operating systems and basic offices near monopoly software in the category. The technology has been increasing and improving and is becoming more related to mobile and entertainment devices and industry as well.  There are many different companies that have come into existence that have led the company into connecting with equivalent or substitute products from other companies. Microsoft’s MSN has been replaced and defeated by Google and Yahoo. There are other software development tools and databases that have rival competition with other software from IBM and oracles. 

To help in determining the significant contributions that Microsoft has made and helped in the progress of the company. 

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SWOT Analysis

Strengths of the company include

  • Leading software company: this is the largest and undisputed global market leader in the software technology that has been developed and is used for cloud computing. This is the world’s largest developer of Windows OS and also has a commercial cloud system that includes Azure, Dynamics 365 and office 365. The generated annual revenue that was noted in 2018 was 23.2 billion dollars. 
  • Dominant market share: the market value of Microsoft is known to be 750.6 billion dollars among the world’s largest companies in 2018 and it is also ranked as the 4th largest company in the world. Microsoft also owns the largest market share with a 3%-point gain among the other five largest cloud service providers. Get case study help.
  • Market reach: Microsoft has been known to have a vast market reach within its technology as it operates in over 190 countries worldwide and after launching the promoted version of windows 10, it has over 700 million installs worldwide. 
  • Growth: it has been seen that Microsoft does have a constant growth that is seen in the market and it has been noted that there is a clear strong growth in the cloud business. Microsoft will be worth 1 trillion in the near future. 
  • Market capitalization: Microsoft is one of the biggest hi-tech companies and it has a steady presence of 776 billion US dollars of market capitalization that is seen. 
  • Reputation: this is a brand that has valuable brand recognition that is the biggest strength of the brand and also provides equity in the digital industry. 

Weaknesses of Microsoft include

  • Cybercrime: hackers have reportedly attacked the cybersecurity space of the windows operating system and that has put the company in a very vulnerable space several times. 
  • Innovation: there is a lack of innovation that is seen in the hardware products of the company and this lagging innovation has caused a high lag in the business. Avail study help.
  • Overexposure to the computer market: the shipments of the personal computer have been reported to be subjected to frequent falls that is due to the vendors rising prices and currency fluctuations.
  • Unsuccessful acquisitions: it has been noted that Microsoft has very few acquisitions such as web TV, link exchange and massive failures that have resulted in unprofitable investments and weaknesses for Microsoft. 

Opportunities for Microsoft include

Partnership and acquisition: there is a need for Microsoft to focus on entering strategic alliances and partnerships that will help the company to gain a high market share. If Microsoft aims to acquire major hi-tech firms that will be profitable for Microsoft. 

  • Cloud business growth: there is a need for cloud-based services that will provide immense growth and success in recent years and that will present an opportunity for the expansion of the cloud business. 
  • Smartphone industry: their largest and most fast-growing industry is the smartphone and tablets industry and this is an excellent domain for Microsoft to expand in as it is already a built and favoured brand and will be well accepted by this industry. 
  • Leadership strategy:  it is possible for Microsoft to gain the opportunity to increase its sales and revenue if it can offer products at lower prices and it will prevent hackers from using software illegally.  

Threats that Microsoft faces

  • Workforce criticism: there is a high diversity in the workforce of the company and statistics show that there is an imbalance in its recruited workforce. The number of women and minorities working was quite low and there was a high level of criticism and arguments that were present against the company’s HR policy.
  • Competition: there is the aggressive competition that is noted with Google and Apple. 
  • Open-source projects: there are many open-source projects such as Linux OS and Open-source office that have successfully entered the market and can offer similar services for free. This poses an immediate threat to the company. 
  • Cybercrime and piracy: there is a clear rise in software piracy issues that have dramatically affected Microsoft’s security network system. 

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PESTLE Analysis

Microsoft PESTLE analysis will help in analysing the various external factors such as political, economic, social, and technological. legal and environmental factors of the company.

Political factors

 This is a company that had to do a big amount of lobbying to build a favourable image of the company in the political circle. The company has paid more than 10 million dollars in ensuring to keep the favourable image of the company in a clear light. The company had also grabbed unfavourable attention in the case of antitrust-related issues. You should check for plagiarism in your case study assignment.

Economic factors

Disposable income and inflation are important factors which can provide both opportunities and threats to the company. The most used operating system in the world is Windows 10 and the increasing income of people in developing countries does provide a great opportunity for Microsoft as more people are buying laptops and computers that are used for operating.

Social factors

It has been noted that the increase in the use of laptops and computers is dramatically increasing in the present and will also increase more in the near future. There is a need for the company to adapt itself according to the changes in the needs of the customer preferences, trends and cultures. There is a boom in the sales of computers and laptops and from these sales, the company has benefited a lot as its operating system has become a household name as well as it has been noted to be very user-friendly for all. The use of a laptop or computer is now becoming the biggest necessity that people have and it is important for Microsoft to grasp the changes and focus on the laptop and computers and also expand in the smartphone era that will help in the user-friendly market for the customers. 

Technological factors

The largest and leading technological innovation in the world is Microsoft this is the first company that introduced the operating system which revolutionized the world and it introduced the feature of the start button which has become very popular and has been relaunched after Microsoft scrapped it in 2012. The most important aspect that was launched once the web browser started as an internet explorer. This opens into any information that is required within seconds and that can help in communicating with people sitting in other parts of the world. This is an exceptional feature that will help people in finding anything that they need to search about and that will help in communicating with people that are sitting in different other parts of the world. This is continuously improving its operating system to give a seamless experience to its customers. The technology of the windows 10 operating system is the best experience, latest and most used technology in the world.     

Legal factors

As Microsoft is such a big company and the world’s largest company there are high chances of getting into legal issues. There are total lawsuits that have been given till now amounting to almost 9 billion dollars. The company was entangled in a legal imbroglio when its 8,600 current and former employees filed lawsuits against the company for gender discrimination. This was a big lawsuit that stated that this company had systematically discriminated against female engineers and IT employees. Forced windows upgrade had destroyed the personal computer of a person who had purchased a laptop recently and that did cause a lawsuit to be filed for Microsoft. 

Environmental factors

All the companies are trying to go green and it is obvious that there is a need for green initiative as a priority project. Microsoft has become the most environment-friendly company according to the reports that have been published recently and the grant to use artificial intelligence reduces global warming and stimulates research for environment-friendly for sensitive computing. 

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