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Microsoft

Microsoft PESTLE
BusinessManagementMarketingSWOT & PESTLE Writing

Like to Know PESTLE Analysis of Microsoft

by Shamsul

PESTLE Analysis of Microsoft

Microsoft is one of the top business corporations in the world. It operates in over 100 nations. It is a popular consumer electronics and technology company that offers world-class software, cloud computing services, PCs, and desktop operating systems. While doing a PESTLE analysis of Microsoft, we noticed that the company is operating in an effective manner. The company has achieved colossal success because of the remarkable strategies of Bill Gates who is the most successful and richest man alive in the world.

With over 2 trillion in market capitalization, Microsoft is the most valued and 3rd largest company right now. In order to unearth its success story, you need to conduct its PESTLE analysis which is the best strategic analysis tool. It offers an excellent evaluation of the company’s external business environment.

In this post, we will conduct a comprehensive PESTLE analysis of Microsoft. So, let’s get started!

 
Political Factors | PESTLE Analysis of Microsoft
 
Political factors such as political system and political stability have a huge impact on the processes and operations of the company. The political system is highly stable in the United States, giving Microsoft a big edge. The business environment in the US is very welcoming for software companies as they have flexible and adjusting tax policies. As a software company, you must spend so much on getting contracts and maintaining your products and services. The government has given tax exemptions for software maintenance contracts. As a result, companies can easily save money and can spend it on other projects.
 
After the United States, India is another big consumer electronics and software market. This country is one of the fastest emerging economies right now. India and the US have favorable trading agreements allowing them to cooperate in developing innovative software and consumer electronics. This kind of trading between both countries will highly boost the software industry globally. According to the Indian government policy, anyone can make foreign investments in the software industry in India.
 
 
Economic Factors | PESTLE Analysis of Microsoft
 
The recent economic upheavals are affecting the economy worldwide. Due to this reason, the growth rate of every country has been decreasing since 2020 and the US economy is no exception. In 2021, the growth rate of the United States was 5.7 percent which decreased to 4 percent in 2022. Now, it has dropped to 2.6 percent in 2023. These fluctuations prevent investors from making new investments. These economic problems also affect the sales and profitability of the software sector, including companies like Microsoft. Last year, the companies raised the employees’ salaries, which also created a big difference between revenue generation and business expenditure. This would ultimately impact the consumers’ purchasing patterns and the companies’ sales would automatically decrease.
 
When compared to India, its economy is rising despite facing all the economic ups and downs. Companies in India are spending so much money on cybersecurity. That’s why the Indian software market has a great scope for software companies like Microsoft. In the United States, the software sector is worth 313.70 billion dollars which is going to be 733 billion dollars by the end of 2028. It is important for giant software companies to target the Indian market in order to capture more customers because it is a huge market. At this time, IT and business services have been dominating in the United States market.
 
 
Social Factors
 
The novel virus Covid-19 has greatly impacted companies and businesses in the United States. Many businesses have suffered great losses and some companies have been going out of business completely. This virus will also impact the long-term working and profitability of the company. There are no signs of improvement right now. However, this upheaval has given an enormous boost to digital businesses. Now, most people are working from home. It creates a big business opportunity for software and tech companies to innovate new services that can cater to the demands of remote workers. This will definitely create a positive impact on software companies and tech businesses.
   
 
On the other hand, several Indian businesses are adopting a digitalization culture. This will offer an awesome opportunity to software companies to expand their footprint. Plus, the growing consumer demand is another amazing opportunity for companies like Microsoft. People in India are becoming tech-savvy and it has the youngest population right now. Software and tech companies should exploit this break to grow further.
 
 
Technological Factors | PESTLE Analysis of Microsoft
 
The United States government encourages innovation and technological advancements in the software and tech sector. In 2021, the government invested over 157 billion dollars in research and development in this sector. Many companies have gained immense success using AI (Artificial Intelligence) for different operations. Moreover, UI/UX has also gained colossal popularity because it has improved the overall user experience and interface quality.
 
Serverless computing is also gaining popularity these days. Cybersecurity is another famous technology to prevent the danger of cyber threats. This is a big opportunity for cybersecurity companies to develop and introduce new cybersecurity tools. Data management has become easier with the emergence of innovative cloud computing that is used to store data. Then again, the other emerging technologies such as IoT, Automation, edge computing, blockchain, Robotic Process Automation, and 5G will create so many development opportunities in the software and tech sector.
 
 
Legal Factors | PESTLE Analysis of Microsoft
 
The intellectual property regulations encourage companies to invent new technologies and register their patents for twenty years. The privacy act of 1974 also allows businesses to use, store, and collect data from tech and software companies. So many other laws govern the industry, such as General Data Protection Regulation. These legal norms are made for the protection of the companies and the users.
   
 
Further, India is one of the largest markets for the software sector. But, their laws for the software industry vary when compared to the United States laws and regulations for the software sector. That’s why it is hard for international companies to get contracts in India. These factors can slow down the revenue stream and overall profitability of software companies like Microsoft.
 
 
Environmental Factors
 
Both the United States and India are taking initiatives to reduce their carbon footprint, air pollution, land pollution, and water pollution. According to the US government, their carbon emission footprint will decrease to 50 percent by the end of 2030. Also, India is also planning to cut its carbon footprint by 2070. The software and tech sector has a huge impact on the environment. For this reason, companies are manufacturing products that pose no harm to nature. There is a big opportunity for the software industry to enhance its profitability by taking environmental concerns into consideration.
 
 
Conclusion
 
From this PESTLE Analysis of Microsoft, it is clear from this analysis that political, economic, social, and technological factors are extremely favorable for the software sector. But, legal and environmental factors can hurt the industry’s business operations. It is essential for software companies like Microsoft to innovate new services and products in order to take a competitive edge.
 
 
 
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  Nintendo  
 
 
BusinessManagementMarketingWriting
 
Nintendo Special Marketing Approach | How it deals with Microsoft and Sony?
 
 by Shamsul   
 
 
 
 
 
 
Nintendo Special Marketing Approach | How it deals with Microsoft and Sony?
  
Nintendo spearheaded the video/computer game craze during the 1960s and, since its commencement, kept improving gaming equipment. While its two main rivals (Microsoft and Sony) stay prominent players in the business, Nintendo supports its strength and exceptional style.
 
Nintendo is a furious contender on account of its particular promotion system. Taking a gander at its most recent item – the Nintendo Switch/Switch Lite – its mission utilizes notable brand mascots and image marketing. Nintendo’s family (which has The Legend of Zelda, Pokémon, and Mario) is known to customers around the world. Nintendo’s $8.8 billion brand esteem comes from its unique gaming characters that endure in its marketing and go about as representatives for the brand. The rehashed incorporation of these mascots in Nintendo promotions makes clients dedicated due to their conspicuous symbolism and commonality to currently settled games.
 
 
The advancement of the latest item, the Nintendo Switch, is an illustration of how Nintendo’s advertising technique is recognized and exceptional from its rivals. The Nintendo Switch accomplished 55-million-unit deals since its launch in March 2017 not just because of its enormously notable brand mascots but also because of how it’s marketed. In Nintendo’s promoting efforts, the attention is focused on player collaborations. This exhibits the items ascribed just as genuine encounters. In Nintendo’s “First Look at Nintendo Switch”, the client plays at home, on the plane, at the air terminal, in the vehicle, and more. An enthusiastic reverberation is made from introducing utilization situations that are a mix among item and genuine scenes. These Nintendo advertisements set up a passionate connection between the mascots, the clients and the brand.
 
One more fascinating part of Nintendo’s advertising approach is sound. A consistent symbolization as a ‘tick’ sound like somebody snapping their fingers or when players activate the joystick is the biggest distinction for the Nintendo Switch. This is an important way for advertisers to associate the items’ highlights and activity natural to the clients. This sound is in each campaign which assists Nintendo in different types of marketing and promotion phases. It makes the real difference that creates easier recognition for the Nintendo Switch.
 
 
In light of Nintendo’s innovative advertising approach, the Switch represented 60% of worldwide unit deals of modern games in 2020 (against new item enhancements like the Sony PlayStation 5 and Xbox S). This shows Nintendo’s marketing methodology for the Switch exceeded all expectations in winning shoppers.
 
The Pokémon Brilliant Diamond and Shining Pearl were released in November 2021, and will be delivered for the Switch. In the wake of uncovering Nintendo’s special advertising methodology, it will be fascinating to break down the Pokémon advertisements and how they will be shown until the game’s delivery date.
 
—
 
Marketing Strategy of Nintendo
 
We have all appreciated playing Mario. Nintendo Co. Ltd. created the game It is based on a Japanese game and is one of the world’s biggest computer games. Nintendo holds the status of top organization and has had the option to make top-selling and most popular computer games like Pokémon, Mario, and The Legend of Zelda.
 
Fusajiro Yamauchi established Nintendo in 1889. Presently, it is one of the most important and persuasive industries. It fostered the games business during the 1970s.
 
Nintendo’s headquarters in Kyoto is the most important name in Japan and had a market worth of $37 billion in 2018. It has a market capitalization of around $55 billion.
 
Mission:
 
We accept it is fundamental not exclusively to give products of the greatest quality; however, to treat each client with consideration, thought, and regard.
 
Vision: Put Smiles on the Faces of Everyone we Touch
 
Slogan: “Switch and Play”
 
   
 
Segmentation:
 
The market division methodology executed by Nintendo offers various toys, gaming consoles, and multiple gadgets. With the assortment of offers, they have made a variety among their clients.
 
Names like Nintendo Switch and Ds have utilized various ways to deal with division. The principle procedure is segment division based on demography. Individuals aged 15-35 who are gamers love to play Nintendo games. Under behavioral or social division, it focuses on individuals who nonchalantly prefer to mess around and are not bad-to-the-bone gamers.
 
Target:
 
The Nintendo gaming consoles’ fundamental objective market is individuals keen on gaming. This market has been dismissed in the past for a long time. It is casual gamers: ladies, more seasoned people, families, and children. It focuses on those purchasers who will purchase the items.
 
The primary objective is the ages 25 to 35 or Generation Y.
 
Positioning:
 
This technique utilized by Nintendo is unique in relation to what Sony and Microsoft use. Nintendo is a gaming console intended for early and beginning-level gamers. They make consoles for advanced gamers or individuals who are unmistakable with regard to gaming.
 
It offers a gaming console for individuals who play for fun and never participate in gaming competitions. Because of this, Nintendo enjoys an extraordinary upper hand over Sony and Microsoft. Another situating procedure Nintendo has utilized is making games easy and versatile, for instance, Donkey Country Tropical Freeze, Rocket League, Mario Kart 8, Skyrim, Dark Souls, and more.
 
 
 
BCG Matrix in the Marketing Methodology of Nintendo:
 
Brands like Zelda, Mario and Pokémon are extremely popular, and pretty much every individual would have played once in the course of their life. They are as yet doing extraordinary in the field.
 
These are the huge Cash Cows for this company. Under the stars, the classification is the 3DS and Splatoon. These are doing amazingly well in the industry. The Wii U, when it was delivered in 2012, sold 13.56 million copies in the first 5 years and Switch (one of their most selling brands) sold 14.86 million copies in the last 2 years.
 
Metroid Prime 4 was declared in 2017; however, the head of improvement said the organization was not satisfied with the advancement of the item as it was not under Nintendo norms, and presently it is rejecting practically everything up to this point and begin once again without any preparation accordingly Metroid got a position in the question marks class.
 
The Wii U was one of the disappointing ideas by Nintendo. It professed to be Nintendo’s most exceedingly awful selling console. Other failed products by this company are the F-Zero and Codename STEAM. These games secured a position under the Dog’s Category in the BCG matrix.
 
Marketing Procedure and its Distribution
 
Nintendo has its brand presence in most regions of the planet and is perhaps the most compelling organization. It has its American office in Washington and its European office in Frankfurt, Germany.
   
 
The Australian subsidiary is in Melbourne and operates in New Zealand, Oceania, and so on. Nintendo has a strong dispersion channel across significant regions of the planet and the items are effectively accessible across the business sectors.
 
The dissemination network is strong and has item accessibility in electrical retail outlets, hypermarkets, and gaming stores like Walmart, Game Planet, and so forth. Nintendo likewise utilizes an internet-based channel to provide its games. There are several ecommerce shopping options from which clients can buy the items, like eBay, Amazon.com, and more.
 
Brand Value in the Marketing Methodology Nintendo:
 
Nintendo has a solid brand legacy; however, it initiated as a simple toy producer. Nintendo has succeeded in remembering its roots and centralized the contribution and fun part of the item, generally relying on the latest innovation.
 
It has a more extensive target market. It chose to pull together the objective populace, not only the youthful male who likes great illustrations and activity games. This has worked for Nintendo as it can get a regularly overlooked market.
 
In view of Nintendo’s “relaxed games” class, it has had the option to keep up with its situation in the market with deals worth 753.4 billion Japanese yen.
 
 
Upper Hand in the Marketing Technique Nintendo:
 
Brand:
 
Nintendo is a trailblazer in making intuitive amusement and markets and producers’ product and equipment for its home console, Nintendo 3DS and Nintendo Switch. Since it sent off the Nintendo theater setup in 1983, more than 4.7 billion games and 740 million pieces of equipment have been sold internationally.
 
The brand has had the option to make industry symbols that are notable family games like Pokémon, Metroid, Zelda, Donkey Kong, and more. The brand has an extremely strong brand name and has had the option to keep up with its heritage as of recently.
 
Pricing Technique:
 
The deals of the Switch flooded when Nintendo carried out its latest Pocket Monsters Smash Brothers game not long before the Christmas season. One key benefit that it has over its rival is solid price control over its competitors like Xbox One and PlayStation 4. People trusted it that this support the Nintendo shares for a long time.
 
Nintendo isn’t as costly as to Microsoft and Sony. It is reasonable for all and made for all. This procedure has assisted it with remaining in front of the opposition.
 
   
 
 
Solid Console Market:
 
As indicated by a report of Strategic Analytics, it said that Nintendo was the top creator of consoles in 2019, as Nintendo sold more Switch products than Sony’s PS4v consoles.
 
The year 2018 was incredibly great for the consoles with absolute deals approaching $41 million and the business developed and reached $15 billion in 2019. Nintendo enjoys the great benefit contrasted with its rivals.
 
 
Competitive Analysis of the Marketing System of Nintendo:
 
Microsoft and Sony are significant contenders for Nintendo. The Sony PlayStation 4 has a market share (57%) of the overall industry; Microsoft’s Xbox One has 27%, while Nintendo’s Switch has a portion of 16%.
 
In November 2018, Xbox made sales of 1,622,650 units while Sony’s PlayStation 4 surpassed Switch by 497,101 units. The Sony PS5 launched in 2020, and individuals enthusiastically sat tight for it.
 
The mobile games sales record over half of the Global Games market and came to $137.9 Billion in 2018. Nintendo is doing very well in the versatile games market and said to develop its portion of the overall industry further.
 
 
Client Analysis:
 
As per research, the normal clients of Nintendo are around 35 years of age and have been playing for quite some time. The players belong to different categories of students, workers, seniors, moms and fathers, military soldiers, and they are driving the advancement of games.
 
The Nintendo buyers are not advanced gamers. They are the average gamers that play for the sake of entertainment and diversion and not really for serious reasons. The Nintendo games are more similar to a family game where guardians and children enjoy an intelligent and fun time with each other.
 
These customers don’t have a lot of purchasing power in light of the fact that, in the mobile game industry, there are not many effective organizations that focus on these shoppers, kids and non-casual players.
 
 
Advancement Strategy:
 
Nintendo has had the option to set up a brand with a colossal fan following. Each new idea is an immense pleasure for the users. It created a time occasion for Nintendo. During these occasions, a few realized characters are welcome to blend with those who love games.
   
 
These people also love to have connectivity with modern social media networks such as Twitter, Facebook and Instagram while playing the game. Nintendo discovered interesting solutions to keep the players connected with their most favorite social networks. In this way, Nintendo fulfills the customer’s wishes and creates marketing opportunities to promote their games.
 
Products by Nintendo such as Switch and 3DS, forced customers to watch virtual reality videos such as “Believe Your Eyes” in the UK. The company also started some campaigns such as “Play It Loud” and “Virtual Boy.” These campaigns were extremely successful and popular around the world. In a report, Nintendo claimed that it kept a budget of $25 million for these campaigns.   
 
 
 
 
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  Microsoft Marketing Strategy  
 
 
BusinessManagementMarketing
 
Microsoft’s Marketing Strategy | Marketing Strategy of Microsoft
 
 by Shamsul   
 
 
 
 
 
 
Microsoft’s Marketing Strategy | Marketing Strategy of Microsoft
 
 
 
Bill gates founded Microsoft in 1975. This American multinational company can be considered a technology giant that makes people’s lives convenient, advanced, and comfortable worldwide. Microsoft offers a different variety of services related to personal computers, computer software, and consumer electronics. It develops and manufactures licenses, provides supporting excellent quality services and products based on its portfolio. This world’s largest, one of the most valuable companies in the world, repeatedly listed in the top 100 Forbes ranking of companies, is not unknown to any. Microsoft’s Marketing Strategy has made it a leader in the IT industry.
 
Targeting, Segmentation and Positioning Strategy of Microsoft Marketing:
 
This giant tech company characterizes its customers based on behavioral and demographical segmentation strategies to create segments that relate to it. In the demographical segment, products like office-based products and operating systems are available to everyone. In the behavioral segment, products like window server, Microsoft, operating system related are available for Windows or Windows phones. It has its roots in many software and hardware businesses, from mobile selling and manufacturing to operating systems. As it has comprehensive services and product portfolio, Microsoft uses a combination of differentiated along with non-differentiated targeting tactics. While dealing with windows, offices, and the overall operating system, the population is equally distributed and the whole world having access to any computer is the target.
 
The company has been rebranding the products and logos of the services. It has undergone a remarkable turnaround to reposition as a value-based industry that aims to enrich people’s lives around the globe. While talking about Microsoft’s position in the market, its several software and operating systems are top minds positioned. The brand value of Microsoft is this excellent that any launched product gets a nice immediate positioning. But in few cases, like its window mobile phones, the market position is not that strong compared to Apple or Samsung. However, in the developer tool and mobile market, the competition is high, and preference by customers is given on the basis of offered features, so staying up-to-date and using a differentiated target strategy is necessary.
 
Microsoft’s mission is to empower every organization and every person around the globe to achieve better. Its vision is based on what can be done and the final goal with a tagline emphasizing the customer’s potential and the company’s passion.
   
 
Use of Competitive Advantage for Microsoft’s Marketing Strategy:
 
Microsoft has the benefit of a variety of offered services and products over other companies. Its comprehensive range offerings spreaded from Xbox console games, software to Microsoft tablets. Being a part of the meta-market industry provides an edge over many. One can excel through sharing capabilities. It’s another and significant competitive advantage is based on the big and small companies like Skype, Hotmail, Nokia, Navision, Vision Corporation etc. that he has acquired. Microsoft’s closest competitor is Apple. It is better because installing its software and operating system has no hardware binding, which is the main problem related to Apple smartphone distribution. But loss related to piracy is also huge. Another advantage that Microsoft has is its massive product line. 
 
It is a worldwide leading provider of operating systems and owns a dominant industry position on the basis of worldwide figures. It offered a free upgrade of its latest window 10 to window 7 users. Microsoft has also worked on the total cost of ownership (TCO) so that software is economically and efficiently available to its users.
 
BCG Matrix Analysis of Microsoft’s Marketing Strategy:
 
Its online services, business division and window division dealing with consumers are stars as its bases are related to OS windows platform. With huge OS market shares, offered software by the company get more attraction and trust by consumers. However, it was overtaken by Apple’s operating system in the USA, which is the home country of Apple, but in the global market, OS windows are unbeatable. Office suites and Xbox 360 are stars with high market shares, but ongoing indirect and direct competition exists in these segments. In the former, open sources like Kingsoft, open office, and many others are offered in the earlier format, whereas Sony and Nintendo offer competition in the latter. Devices divisions like Zune, Microsoft phones etc. are a question mark placed in the BCG matrix due to strong competition by rivals.
 
Distribution Advantage as a part of Microsoft’s Marketing Strategy:
 
Its multi-channel strategy and wide channel distribution make its services and products available to its end customers and have helped this company enhance its awareness and visibility. It uses large retail outlets and e-commerce sites along with exclusive showrooms to make its services and products available to its end customers. Its distribution of operating system has a great key factor of its being tied up with HP, Dell, and other OEM’s. These companies provide laptops that are already installed OS window systems.
   
 
Brand Equity as a part of Microsoft’s Marketing Strategy:
 
In 2016, Microsoft became the 5th greatest valued brand in the world. It has high TOMA because of the great acceptability of window’s operating system in the market. Microsoft is one of the oldest/longest present tech sector companies and has continuously changed according to business environment changes. It used different campaigns like, “GET-THE-FACTS”, Scroogled, and many others that helped enhance brand visibility more than before.
 
Competitive Analysis as a part of Microsoft’s Marketing Strategy:
 
Hi-tech culture is emerging, innovative products creations by companies and services are according to customer needs. This kind of high acceptance and appreciation of technology and products change the industry into the hot cake. Every IT company is trying its best to take the prominent spot among which Google is a top rival of Microsoft.
 
Market Analysis as a part of Microsoft’s Marketing Strategy:
 
Microsoft has a rapid growth rate going up with the needs and challenges of the industry. Companies in this industry are trying to outsource their services and products from developing nations. This process is helping to decrease operational costs because the customer side has a variety of companies available in the market, giving clients the benefit of a bargain.
   
 
Customer Analysis as a part of Microsoft’s Marketing Strategy:
 
Microsoft has services and products for each age group and interest group, whether the customer is individual or based on a whole enterprise.
 
 
 
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  SWOT Analysis of Microsoft  
 
 
BusinessManagementMarketingSWOT & PESTLE 
 
Microsoft SWOT Analysis | Microsoft Marketing
 
 by Shamsul   
 
 
 
 
 
 
 
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 Gates, Paul 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.  
  2. Use valuable and useful marketing tools in order to expand its reach and enhance the brand value.
    3.  
  3. Enhance market share by introducing new features in the Internet browser market.
    4.  
  4. Construct competitive benefits to compete with competitors such as Apple and Google.
    5.  
  5. Make acquisitions and partnerships with small tech-based companies in order to enhance their position.
    6.  
  6. Address cyber-security problems by developing a strong security network system.
    7.  
  7. Review its pricing policies so that daily wagers can also exploit their facilities.
    8.  
  8. Enhance market share by diversifying their business.
    9.  
 
 
 
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