SWOT ANALYSIS OF MICROSOFT : Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft would also come to dominate the office suite market with Microsoft Office. The company has diversified in recent years into the video game industry with the Xbox and its successor, the Xbox 360 as well as into the consumer electronics and digital services market with Zune, MSN and the Windows Phone OS. The ensuing rise of stock in the company's 1986 initial public offering (IPO) made an estimated four billionaires and 12,000 millionaires from Microsoft employees.
SWOT Analysis of Microsoft Corporation
STRENGTHS:
• Microsoft is a huge global brand. It is recognizable for two main reasons. It was one of the largest software developers it has developed a customer base of around 30 million people. It has built its reputation on the successful development of its computer softwares namely the Windows line of products.
• Brand is all-important. Microsoft is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocates and uses the brand. With loyal customers, it means that Microsoft does not only recruits new customers but retains old ones.
• The company is composed of different main offices inside the United States and around the globe making the distribution and development of its products easily accessible to the consumers. It has its offices in Germany, United Kingdom and Europe and sub offices in countries such as China, France and Korea.
WEAKNESSES:
• Microsoft lacks a solid client and service support center on the internet. This is important since problems and bugs with regards to their products must be fix rapidly to attain efficiency. The lack of a customer service center would erode the integrity and quality perceived by costumers on Microsoft products.
• Microsoft products have compatibility issues with other hardwares and softwares manufactured by other companies. This compatibility issue would then limit the ability of the customer to buy all products made by Microsoft since it would affect the stability and performance of a computer.
• Microsoft does not share the programming codes of its softwares making modification difficult if bugs and other malfunctions are detected by programmers not affiliated to the company.
OPPORTUNITIES:
• Microsoft moved into the Chinese market by producing computer programs based on the Chinese language and giving discretionary authority to the Chinese government to censure and to eaves drop on emails, documents and webpage.
• Microsoft has also diversified its products. During the past years the company has ventured into fields such as game design, game developing and publishing and the production of game consoles such as the Xbox.
• The company has also branched out to provide free email and news services to its costumers. It has also developed softwares and computer programs that is vital in organizing business spreadsheets and data.
THREATS:
• The success of Microsoft in software development has spawned other competitors to follow the footsteps of the company towards success. The primary competitor of the company in the operating systems industry is the Linux program developed by independent programmers. This program is easy to use and can be obtain free of charge.
• Since the company is diversifying in other fields it competes its products with the products being made by companies who have been experts in their chosen industry. The company might eventually lost its battles in making its products competitive when put side by side with products made by corporations which has established their name and reputation to the customers.
• Another threat that is being faced by Microsoft is the different lawsuits and indictments against the company being made by independent companies, programmers and software developers. These lawsuits do not only exhaust the financial resources of the company but it also promotes negative publicity and bad public image.
CONCLUSION
Microsoft with its apparent success in the present must face problems that will be evident in the near future. Although Microsoft is a leading company in its chosen field of software industry, the dominance and the monopoly that it enjoys can be erased and its dominance in the market can be eclipsed by other new companies in the industry. The paper has identified several problems inherent to the company and have highlighted the effects that these negatives factors will bring on the over all stability of the company in the future. Problems such as poor designs, the challenge of other competitors like Linux and tightening government control are some of the hindrances that will eventually obstruct Microsoft in its road to progress. To eliminate and to diminish the impact of these problems and difficulties, the company must undertake needed reforms and initiate policies that will improve certain aspects of the company.
SWOT Analysis of Microsoft Corporation
STRENGTHS:
• Microsoft is a huge global brand. It is recognizable for two main reasons. It was one of the largest software developers it has developed a customer base of around 30 million people. It has built its reputation on the successful development of its computer softwares namely the Windows line of products.
• Brand is all-important. Microsoft is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocates and uses the brand. With loyal customers, it means that Microsoft does not only recruits new customers but retains old ones.
• The company is composed of different main offices inside the United States and around the globe making the distribution and development of its products easily accessible to the consumers. It has its offices in Germany, United Kingdom and Europe and sub offices in countries such as China, France and Korea.
WEAKNESSES:
• Microsoft lacks a solid client and service support center on the internet. This is important since problems and bugs with regards to their products must be fix rapidly to attain efficiency. The lack of a customer service center would erode the integrity and quality perceived by costumers on Microsoft products.
• Microsoft products have compatibility issues with other hardwares and softwares manufactured by other companies. This compatibility issue would then limit the ability of the customer to buy all products made by Microsoft since it would affect the stability and performance of a computer.
• Microsoft does not share the programming codes of its softwares making modification difficult if bugs and other malfunctions are detected by programmers not affiliated to the company.
OPPORTUNITIES:
• Microsoft moved into the Chinese market by producing computer programs based on the Chinese language and giving discretionary authority to the Chinese government to censure and to eaves drop on emails, documents and webpage.
• Microsoft has also diversified its products. During the past years the company has ventured into fields such as game design, game developing and publishing and the production of game consoles such as the Xbox.
• The company has also branched out to provide free email and news services to its costumers. It has also developed softwares and computer programs that is vital in organizing business spreadsheets and data.
THREATS:
• The success of Microsoft in software development has spawned other competitors to follow the footsteps of the company towards success. The primary competitor of the company in the operating systems industry is the Linux program developed by independent programmers. This program is easy to use and can be obtain free of charge.
• Since the company is diversifying in other fields it competes its products with the products being made by companies who have been experts in their chosen industry. The company might eventually lost its battles in making its products competitive when put side by side with products made by corporations which has established their name and reputation to the customers.
• Another threat that is being faced by Microsoft is the different lawsuits and indictments against the company being made by independent companies, programmers and software developers. These lawsuits do not only exhaust the financial resources of the company but it also promotes negative publicity and bad public image.
CONCLUSION
Microsoft with its apparent success in the present must face problems that will be evident in the near future. Although Microsoft is a leading company in its chosen field of software industry, the dominance and the monopoly that it enjoys can be erased and its dominance in the market can be eclipsed by other new companies in the industry. The paper has identified several problems inherent to the company and have highlighted the effects that these negatives factors will bring on the over all stability of the company in the future. Problems such as poor designs, the challenge of other competitors like Linux and tightening government control are some of the hindrances that will eventually obstruct Microsoft in its road to progress. To eliminate and to diminish the impact of these problems and difficulties, the company must undertake needed reforms and initiate policies that will improve certain aspects of the company.
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