Presentation topic :

Swot analysis of Microsoft

Presented by :

Names : roll no.

1. Habibullah : 20-se-004
2. Sayed hadir zubair : 20-se-002
3. Tayyaba raza : 20-se-019
4. Hassan javad : 20-se-064
5. Muhammad aftab javad : 20-se-022
Context…..
• What does Swot mean?
• About Microsoft company.
• Swot analysis of Microsoft company.
1. Strengths of Microsoft.
2. Weakness of Microsoft.
3. Opportunities of Microsoft.
4. Threats of Microsoft.
What does Swot analysis mean?
• A technique that enables a group or individual to move from
everyday problem to a traditional strategies.

• SWOT analysis look at out strengths, weaknesses,

opportunities and threats that our business faces.

• The SWOT analysis frame is very important and useful tool to

use in marketing management and other business application
1. Strengths
• A strengths are the are recourses and capabilities that can be used
for developing a competitive advantage .
Example of such strengths are include
• Good brand names.
• Good reputation among costumer.
• Cost advantages.
• Exclusive to access to natural resources.
• Marketing expertise.
2. Weaknesses

• The absence of certain strengths are a weakness.

• Characteristics that place the firm at a disadvantage relative to others.
• In some case, a weakness may be a flip side of a strength. For example
some of the following may consider the weakness.
• Weak brand name.
• Poor reputation among customer.
• High cost structure.
• Lack of access to best natural recourses.
• Lack of marketing expertise.
3. Opportunities
• The external environment analysis revels certain new opportunities
for profit and growth.

Some example of such opportunities are

• An unfulfilled customer need.

• Arrival of new technologies.
• Removal of international trade barriers.
• Moving in to new market segments.
4. Threats
• External elements in the environment that could cause trouble for
the business .
• Changes in the external environment also may present threats to the
firm.
 Some examples of such threats include.
• A new competitor in your home market.
• A competitor has a new, innovative product or service.
• New regulations.
• Increased trade barriers.
About Microsoft company
• Microsoft was found by William henry bill gats with Paul Allen
• It was found in 1975.
• The corporate is famous for its windows and office software.
• Microsoft is both service providing and manufacturing company.
• In addition to software products  It develops, manufactures, and sells
computer software, consumer electronics devices, personal
computers, and related services such as tablets and game system.
Company background
Name Microsoft corporation

Logo

Industries served Computer software , Electronics

Headquarters US.

Current CEO Satya Nadella

Employees 1.63 lack

MICROSOFT SWOT ANALYSIS
1. Strengths
STRENGTHS

Brand loyalty

Brand reputation

Easy to use software

Strong distribution channels

Financial performance

Acquisition of skpye
Strengths of Microsoft
• Brand loyalty:
Over the years, Microsoft has been the leading OS and software provider, which resulted
in more than 90% market share for PC OS. Most of us grew up using this software its easy to
use OS, are familiar with it and will keep using it. Few other brands are capable to compete
with Microsoft for this reason. Even open source OS, which are completely free and well
suited to use for common user, find it hard to attract users.
• Brand reputation.
According to Inter brand, Microsoft’s brand is the 4th most valuable brand in the world,
valued at $750.6 billion in the world’s largest companies in 2020. Forbes listed the corporate as
the 7th most reputable business in the world. Brand reputation leads to higher sales and
greater market share.  It also owns the largest market share with a 3% point gain  among the
five largest cloud service providers
• Easy to use software.
Windows OS and Office software products are so popular not just because Microsoft has
great monopolistic power, strong distribution channels and good brand reputation but also
because its products are of great quality and really easy to use.
• Strong distribution channels.
The company works with all the major computer hardware producers such as Lenovo, Dell,
Toshiba and Samsung and major computer retailers to make sure computers would be sold with
already pre-installed Windows software. The company also invested in Dell and Nokia to tighten
its relationships with these companies.
• Financial performance.
Microsoft has consistently beat analyst expectations in terms of profitability and revenues
though it is appearing to be vulnerable to shifting trends like mobile computing in recent years.
Microsoft grew its revenues by 40% from 2014 to 2018 and holds more than $83 billion of
cash.
• Acquisition of Skype.

With nearly 300 million users, Skype is a significant boost to Microsoft’s online presence and have
a lot of potential in generating income from online advertising.
2. Weaknesses
WEAKNESSES

Poor acquisitions and investments

Dependence on hardware manufacturers

Criticism over security flaws

Mature PC markets

Slow to innovate

Smaller Advertising Market Share

Cybercrime theft
Weaknesses of Microsoft
• Poor acquisitions and investments.
Few of Microsoft’s acquisitions were successful and brought not just revenues and
products but new skills and competencies to the company. Massive, Link Exchange, WebTV,
Danger are just few examples of multimillion acquisitions made by Microsoft but soon shut down
or divested.
• Dependence on hardware manufacturers.
Microsoft is a giant software corporation but it does not produce its own hardware and
depends on computer hardware manufacturers to develop products that run Windows OS. If
cheap and popular alternative OS would appear, hardware manufacturers may simple choose the
alternative and Microsoft could do little to change the situation.
• Criticism over security flaws.
Windows OS, the main Microsoft product has been heavily criticized for being so weak
against various viruses’ attacks. Compared to other OS, Windows is the least protected against
such attacks.
• Mature PC markets:
Only recently has Microsoft entered the mobile technology sector and still heavily depends on
its OS and software sales for standalone and laptop computers. The market for these products
has matured and Microsoft will find it harder to grow revenues in these sectors.
• Slow to innovate:
Microsoft has huge R&D resources and great position to enter new markets with innovative
products but constantly failed to do so. It had an opportunity to be the first player in online
advertising but missed the opportunity. It’s entrance to mobile OS was also too late, while
Google and Apple captured the market share.
• Smaller Advertising Market Share:
Advertising revenue of Microsoft has grown in the recent years, but yet its share is much
smaller compares to other major players in the online advertising industry like google and
Facebook.
• Cybercrime theft:
The increasing cybercrime cases have left Microsoft in a vulnerable state. Hackers have
reportedly attacked the cyber security of the Windows Operating System several times.
3. Opportunities
OPPORTUNITIES

Cloud business growth

Innovation and Artificial Intelligence:

Partnerships and Acquisition:

Smart phone industry:

Cost leadership strategy:

Growth through acquisition:

Mobile advertising:

Mobile device industry:

Growth through acquisitions:

 Opportunities of Microsoft
• Cloud business growth:
Microsoft cloud-based services have gained immense growth and success in recent years. Thus, there's an
opportunity for Microsoft to expand its cloud business.
• Innovation and Artificial Intelligence:
Microsoft has a massive opportunity in many innovation areas like AI and game technology. Investing in
these areas can give an upper found to Microsoft.
• Partnerships and Acquisition:
Microsoft can focus on entering into new strategic alliances on of partnership.
It will enable the company to gain high market share.
Acquiring major hi-tech firms will also be a profitable opportunity for Microsoft.
• Smart phone industry:
The fast-growing market of smart phones and tablets offer an excellent opportunity for Microsoft. It can
capitalize on the rising demands of their products.
• Cost leadership strategy:
Microsoft can gain the opportunity of increasing its sales and revenue by offering its product at low
prices.
It may also prevent the hackers to use its software illegally.
• Growth through acquisition:
With a huge reserve of cash Microsoft could start acquiring new technology, skills and competence
to the business.
• Strategic Alliances:
Company can focus on entering into new partnerships for the development of innovative and
technologically advanced products.
Such partnerships provide Microsoft a competitive edge and allow it to gain high market share.
 
• Mobile advertising:
Mobile advertising markets are expected to  grow in double digits over the next  few years and
Microsoft has a great  opportunity to tap into these markets  with its mobile OS.
• Mobile device industry:
Smartphone and tablets markets will  grow steadily over the next few years and  Microsoft
could exploit this opportunity by introducing more of its own tablets and a  new
company phone.
• Growth through acquisitions:
With a huge reserve of cash  Microsoft could start acquiring new startups that would bring new 
technology, skills and competences to the business.
4. Threats
THREATS

Intense competition in software products:

Aggressive competition:

Changing preferences of consumers:

Open source projects:

Potential lawsuits:

Cybercrime and piracy:

THREATS OF MICROSOFT
• Intense competition in software products:
Microsoft is more than ever on the  pressure to introduce successful OS both in PC and mobile 
markets as such  competitors like Google and Apple have already established positions. 
• Aggressive competition:
Microsoft is in intense competition with Google and Apple. These companies’ established positions can
be a threat to Microsoft market position
• Changing preferences of consumers:
People are highly attracted to the market of smartphones, notepads, and laptops. Microsoft has modest
shares in these markets.
• Open source projects:
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 product at an
expensive rate.
 
• Potential lawsuits:
Microsoft has already been used for many times and lost quite a few large scale 
lawsuits. Lawsuits are expensive as they require time and money. And as
Microsoft continues to operate more or less the same way, there is high probability
for more expensive lawsuits to come
• Cybercrime and piracy:
Rising cybercrime thefts and software piracy issues have dramatically affected
Microsoft’s security network system.
Any questions ??