MICROSOFT CORPORATION

2020

01
SWOT Analysis on
Microsoft

Presented by Mohd Anas

Outline

01. Overview

02. Strengths

03. Weaknesses

04. Opportunity

05. Threats

06. Recommendations

02
 An Overview of
Microsoft
All About the Brand

The captain of the ship Bill Gates and his business partner Paul Allen founded Microsoft
in 1975.
It is dominating the software market since then, offering software and hardware products,
operating systems, apps and devices, Cloud computing, and office software suites.
Satya Nadella is currently in charge of Microsoft Corporation. The company is
headquartered in Redmond, Washington, USA.Microsoft is inevitably the world’s most
renowned American multinational technology company. It’s been at the forefront of
technological advancement for more than 40 years and has made significant contributions
to the technology industry.

03
 L EAD ING S OFTWAR E C OM PAN Y
Microsoft is the undisputed global market leader in software
technology specifically in cloud computing. It’s the world’s largest
developer of Windows OS and the leading cloud player. Its
commercial cloud (Azure, Office 365 commercial, dynamics 365)
generated annual revenue of $23.2 billion in 2018.

WO R LD ’S L AR GE ST C OM PA NY WITH
DO M INANT M AR KE T S HAR E

Strengths –
Microsoft ranks 4th with a market value of $750.6 billion in the
world’s largest companies in 2018. It also owns the largest market
share with a 3% point gain among the five largest cloud service
providers
VAS T M A R KET R E AC H
Microsoft operates in more than 190 countries worldwide. After
launching the promoted version of Windows 10, it has over 700
million installs worldwide.
C ONS TANT GR O WTH
The latest earning results of Microsoft clearly demonstrate its strong
growth in the cloud business. According to the analysts, Microsoft will
be worth $1 trillion in the near future.
04
Weaknesses
1 O VER EXPO SUR E TO T HE PC M AR KE T 2 LAC KING INNOVATION

PC shipments are often subjected to frequent falls due to Microsoft has been failing to grow its hardware products sales such
vendors’ rising prices and currency fluctuations. It has landed as surface pro computers and phones. It has been lagging in
Microsoft in a vulnerable position. innovation and advanced technology, whereas, Apple, Google, and
Amazon are quickly blazing trails.

3 C YB ER C R IM E T HE FT 4 UNSU C C E SSF UL AC QUIS ITIONS

The increasing cybercrime cases have left Microsoft in a Microsoft’s fewer acquisitions like WebTV, LinkExchange, Massive,
vulnerable state. Hackers have reportedly attacked the and Danger resulted in failures and divestitures. Such unprofitable
cybersecurity of the Windows Operating System several times. investments are the biggest weaknesses of Microsoft.

05
 C L OUD B US INESS GR OWT H
Its cloud-based services have gained immense growth and success in
recent years. Thus, there’s an opportunity for Microsoft to expand its
cloud business.

IN NOVATION AND A RTIFIC IAL INT EL LIG ENC E

Microsoft has a massive opportunity in many innovative areas like AI and
game technology. Investing in these areas can give an upper hand to
Microsoft.

Opportunities SM ARTP HONE INDUS TRY

The fast-growing market of smartphones and tablets offer an excellent
opportunity for Microsoft. It can capitalize on the rising demands of these
products.

PART NER SHIPS A ND AC QU ISIT IONS

Microsoft can focus on entering into new strategic alliances and
partnerships. It will enable the company to gain high market share.
Acquiring major hi-tech firms will also be a profitable opportunity for
Microsoft.

06
 WO R KFO R C E ’S R EL ATE D C R ITIC ISM S
Microsoft’s 2018 workforce diversity statistics showed an imbalance in its
recruited workforce. The number of women and minorities working was quite
low, fuelling severe criticism and arguments against the company’s HR policy.

AG GR ES SIVE C OM PE TITION
Microsoft is in intense competition with Google and Apple. These companies’
established positions can be a threat to Microsoft’s market position.

Threats C HANGING PR EF ER E NC E S OF C O NSUM ER S

People are highly attracted to the market of smartphones, notepads, and laptops.
Microsoft has modest shares in these markets.

OP EN SO UR C E PR OJE C TS
Like Linux OS and Open Source Office, many new open source projects have
successfully entered into the market offering similar services for free. It can
threaten Microsoft that offers these products at an expensive rate.

07
 Recommendations
To remain the leading software provider, Microsoft needs to work on its weak
aspects and embrace opportunities.

Build more
Increase partnerships,
competitive
Continue enhancing strategic alliances, Decrease the prices
advantages to
its brand reputation and acquisitions to to reduce the illegal
compete with
through effective strengthen its market use of its software
technology rivals like
marketing tools. standing. systems.
Google and Apple.

08
Thank You