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Microsoft SWOT Analysis | Microsoft Marketing

 

Microsoft was established by Bill Gates and his partner Paul Allen on April 4, 1975. It is one of the biggest software industries in the world right and offers hardware and software products, apps, devices, operating systems, and beyond. Mr. Satya Nadella is the existing Chief Operation Officer of Microsoft. This American-based multinational tech company is very popular worldwide. Since then, they have contributed to many tech-based programs and projects. In short, Microsoft changed the face of the world with its innovations and technologies. Let’s discuss Microsoft’s internal and external factors in order to understand its marketing and operation. Read the Microsoft SWOT (strengths, weaknesses, opportunities, threats) analysis and its marketing strategy.

 

Company Name:  Microsoft

Founders:  Bill GatesPaul Allen

Year founded:  April 4, 1975, Albuquerque, New Mexico, United States

Headquarters:  Redmond, Washington, United States

CEO: Satya Nadella (Feb 4, 2014–)

Industry:  Software development, Consumer electronics, Computer hardware, Internet, Cloud computing, Video games, Social networking service, corporate venture capital

Type: Public

Area Served: Worldwide

Employees (Year-end June 2020): 96,000 full-time employees

Annual Revenue (Year-end June 2020): US$143 billion

Profit | Net income (Year-end June 2020): US$44.3 billion

 

 

Microsoft SWOT Analysis | Microsoft Marketing

Strengths of Microsoft:

 

  • Biggest Tech Company:

Undoubtedly, Microsoft is one of the leading software companies in the world. It is also a leading cloud player and the biggest developer of Windows OS in the world. They generated 23 billion dollars from their commercial cloud in 2018.

  • Largest Market Share:

Microsoft has a market value of 750 billion dollars and it stands at number 4th in the category of the world’s largest companies. It is also leading the chart in the biggest cloud service providers like IBM, AWS, Oracle, and Google.

  • Immeasurable Market Reach:

According to a survey, Microsoft currently works in more than 10 countries. After the launch of Windows 10, it has 700 million installs globally.

  • Continuous Expansion:

The constant expansion in revenues makes the company stronger and powerful in the market. According to experts, this kind of constant growth leads the company to touch the figure of 1 trillion dollars in the future.

  • Accumulation of SKUs:

Recently, they added Stock Keeping Units (SKUs) to their portfolio. This SKU consists of Windows 10, Microsoft 365, and Office 365. This thing is a multi-billion dollar business and constantly increasing.

  • Loyal Customers:

With 1.2 billion Office consumers, and 60 million Office 365 customers, Microsoft has a strong and loyal customer base. New users also attracted after seeing their exponential growth.

  • Huge Capitalization:

Microsoft is one of the leading tech-based companies in the world with 776 billion dollars of market capitalization. It is also on the list of the world’s 10 biggest companies.

  • Useful Adverting Platform:

The main success of Microsoft is its effective marketing policy. That’s why they easily engage people with their useful marketing strategies and their new ad ‘’The future starts now’’ attracted many people globally.

  • Strong Brand Image:

Interbrand declared Microsoft as 4th most valuable brand in the world. This kind of fame and image makes the company’s image stronger. This kind of image can be the biggest threat for rivals and this thing also makes them superlative in the eyes of customers.

  • Easy to Use Software:

Microsoft offers innovative and best quality hi-tech products that are user-friendly and easy to use. This is the reason why people love to use their services. Due to this type of offering, they are very popular among users.

 

Microsoft SWOT Analysis | Microsoft Marketing

 Weaknesses of Microsoft:

 

  • Excessive Exposure to the PC Market:

Due to the excessive exposure to the PC market, the change in the prices leaves Microsoft sometimes in a helpless position. This is due to the fluctuation in currency, shipment, and rising price issues.

  • Cybercrime Theft:

Cybercrimes are one of the biggest issues for Microsoft. Many hackers attacked the operating system of Microsoft. It means the security network system of Microsoft is weak.

  • Lack of Innovation:

Microsoft continuously faces a decline in its hardware sales. It is due to the lack of innovation and advancement. Apple, Google, Amazon, and many other companies offer better and innovative technologies.

  • Lacking Market Leadership:

There are several companies like Safari, Firefox, and Google leading in the internet browsing sector by providing innovative features. Microsoft is lagging in this segment due to its poor marketing leadership.

  • Unproductive Acquisitions:

Microsoft tries to collaborate with many companies like Danger, Massive, and LinkExchange, but all of these resulted in failure. These are the major weaknesses and unprofitable ventures for Microsoft.

 

Microsoft SWOT Analysis | Microsoft Marketing

Opportunities of Microsoft:

 

  • Cloud Business Expansion:

The cloud-related offerings of Microsoft have gained huge popularity and growth in the past few years. So, it’s a big opportunity for Microsoft to expand its cloud-related services in order to earn more profits.

  • Innovation and AI:

Microsoft should focus on gaming and Artificial Intelligence (AI) areas in order to make their brand stronger and popular. These kinds of investments give them a competitive edge over competitors and rivals.

  • Collaborations and Acquisitions:

It is imperative for Microsoft to pay attention to useful acquisitions and partnerships in order to enter the new markets. In this way, they can increase their market share and expand their reach to every region of the world which is beneficial for the company.

  • Smartphone Business:

As the android and smartphone industry is growing exponentially, Microsoft should invest in these sectors because it is a great opportunity for them due to their loyal fan-base. This thing will increase its profit games.

  • Cost Leadership Policy:

Microsoft should offer high-quality products at lower prices. In this way, they can expand their growth and hackers won’t hack their system in order to use their services.

 

Microsoft SWOT Analysis | Microsoft Marketing

Threats of Microsoft:

 

  • Workforce’s Related Backlashes:

Many experts noticed a huge imbalance in Microsoft’s recruited workforce. People from different religions and women are very low in their workforce. Due to this reason, Microsoft faces huge criticism.

  • Gay Reference Hullabaloo:

After the launch of the Xbox Live game, Microsoft faced severe backlash due to homosexuality and gay references. They won’t include it because they considered it unsuitable for users.

  • Strict Competition:

The two main rivals of Microsoft like Google and Apple are giving stiff competition. They can also threaten the company’s revenues and profits.

  • Changing Needs of Customers:

As people are addicted to smartphones, laptops, and notepads, but Microsoft’s contribution in this sector is very modest. This is one of the biggest threats to their revenue system.

  • Open Source Projects:

Microsoft offers open-source services at costly rates. But many open-source projects such as Linux OS and Open Source Office provide the same features free of cost. This thing can damage the company’s image and profit.

  • Piracy and Cybercrime:

Different cybercrime thefts are increasing that can affect Microsoft’s security system. It is a big threat for Microsoft and they should resolve this problem immediately.

 

Microsoft SWOT Analysis | Microsoft Marketing

Recommendations:

In order to maintain its position in a competitive market, Microsoft should resolve its weak points and focus to expand its opportunities. For this purpose, these recommendations are useful as given:

  1. Update its working and introduce innovation. Make plans or policies with keeping the future in mind.
  2. Use valuable and useful marketing tools in order to expand its reach and enhance the brand value.
  3. Enhance market share by introducing new features in the Internet browser market.
  4. Construct competitive benefits to compete with competitors such as Apple and Google.
  5. Make acquisitions and partnerships with small tech-based companies in order to enhance their position.
  6. Address cyber-security problems by developing a strong security network system.
  7. Review its pricing policies so that daily wagers can also exploit their facilities.
  8. Enhance market share by diversifying their business.

 

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