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Microsoft Case Study Analysis

Microsoft is by far the world's largest application and software development company. Nowadays, Microsoft is the basis of the whole software industry. In 1995, Bill Gates and Paul Allen joined Microsoft Inc. and in 1980 decided to enter the business of OS (Operating System). It became the world's foremost and unique standardised operating system. The fast-growing world of industrial development and globalisation has seen substantial development in industrial sectors with a significant social and economic growth source. One of the main features of the postmodern industrial revolutions, with almost every essential part of a technical occupation, depending mainly on technological aid to function correctly, is technological progress. Despite its capacity to integrate business ideas that support it in the rapidly spread globalised economy, businesses face unwavering business issues. Microsoft has undoubtedly been among the leading corporate names in the technology industry since its introduction into the corporate world, with its achievements placing it among the 500 affluent organisations. Microsoft also faced problems that impacted its corporate development in line with other organisations. This study help is essentially aimed at analysing Microsoft-faced issues and providing potential alternative options and recommendations.

In recent times, Microsoft Corporation has faced a series of challenges. One of the most significant challenges for Microsoft's technological advancements include low productivity, underproduction or merely poor organisational form of performance. In contrast to its subsequent immense popularity, Microsoft gradually fell short of its market performance, characterised by low performance. In nearly every facet of the enterprise, including technology development, marketing strategies and comparatively low financial ability following the invasion of other technology companies, Microsoft was lagging behind its competing corporations as per the case report published by Wall Street. Management is one of the critical success factors determining the company's onset and adaptability in operations. Corporate management usually administers leadership techniques that assess an organisation's performance, as both financial and human capital are monitored. As per this case, the poor management of the corporation, as presented by Wall Street, has dramatically influenced creativity and stock performance and is one of the potentials issues affecting Microsoft in the present day. The case study showed that creative employees are resigning, with members claiming that the reaction of Microsoft is too slow to changes in technology and other staff citing that Microsoft has failed to deal with their problems.

SWOT analysis of Microsoft

In this SWOT analysis, Microsoft Corporation responds to internal and external strategic factors. The SWOT Analysis is a technique for deciding the weaknesses and strengths of an organisation (internal strategic factors) and the opportunities and threats impacting the business (external strategic factors). These factors underline the significance of unique product development, cyber safety and business differentiation in the context of Microsoft's SWOT analyses. The company can achieve sustainable development in the hardware and software market through these strategies. In order to address these factors demonstrated in this SWOT analysis, Microsoft needs to maintain efficient responses. This SWOT analysis by the Microsoft Corporation shows the need for strategies to develop further and diversify the software and computer business assignment. In this SWOT analysis, Microsoft can also make further attempts to consider problems beyond internal and external strategic factors. The SWOT Analysis of Microsoft is discussed below:

 

Strengths

This region of the SWOT Analysis model recognises the business's strengths or internal strategic factors contributing to business expansion and perseverance. The ongoing achievement of Microsoft is premised on the following strengths:

· Prevalent image of the brand;

· Convergence of commodity with positive externalities; and

· Strong partnerships with other companies;

Weaknesses

In this field, the SWOT Analysis model considers corporate weaknesses or internal strategic factors that slow or reduce business growth. Managers have to address the following weak points in the case of Microsoft:

· Cyber-crime vulnerability;

· Imitability of certain goods; and

· Failure to produce dominant computer hardware goods;

 

Opportunities

This region of the SWOT Analysis Model concentrates on opportunities or external strategic factors to encourage corporate development. In the technology business of Microsoft, the following opportunities are essential:

· Diversification of businesses;

· Creativity for computer hardware commodities; and

· Enhanced cybercrime security;

Threats

In this region of the SWOT Analysis model, threats or external strategic factors significantly decrease or compromise the company. The following threat against computer hardware and software must be addressed in Microsoft's strategies:

· Piracy;

· Strong competitive competitiveness; and

· Cybercrime;

Microsoft Corporation can stay a leading player in the software and hardware industry with the required business characteristics. One of the most significant contributors to this situation is the strong brand image and positive externalities. Microsoft is, therefore, recommended that its brand image needs to be enhanced further. In order to enhance positive externalities, it is also suggested that the business needs to increase its partnerships with other companies. The business weaknesses and threats are linked to Microsoft's strategic reform. For instance, the company needs to continue their innovative ideas to create a less vulnerable cybercrime product. Microsoft also recommends diversifying its business to increase potential development. In addition, the company should enhance its efforts in the advancement of computer hardware to raise its income.

PESTLE analysis of Microsoft

PESTLE analysis of Microsoft investigates the brand's corporate approach. PESTLE analysis of Microsoft inspects the different external factors such as political, economic, social, technology, and legal and environmental factors. The PESTLE Analysis shows the various foreign scenarios affecting the brand's corporation. For businesses such as Microsoft, PESTLE analysis is an indispensable approach for understanding and improving market trends. The analysis of PESTLE is also regarded as the analysis of PESTEL. However, the PESTLE analysis of Microsoft is discussed below:

Factors

Implications

Political factors

 In the PESTLE Analysis of Microsoft, the political factors can be explained as follows:

· Microsoft had to lobby strongly with various countries' governments to image the firm in government circles positively. In two years, the corporation has paid over $10 million for lobbying to construct a favourable political company's image. Because of anti-trust challenges, Microsoft captured government attention. The state blamed Microsoft for building monopolies because of Microsoft's bundling software, and Microsoft was said to have difficulty uninstalling the browser and using a competing browser for customers.

Economic factors

In the PESTLE Analysis of Microsoft, the economic factors can be explained as follows:

· The nation's GDP, disposable earnings, and inflation are the main factors that can offer the corporation a chance and a threat. Microsoft is regarded as a reputed worldwide organisation, and its Windows 10 is the most widely used operating system all over the world. In the recession of 2008, when the economic crisis peaked, Microsoft had such an impact that 5000 workers needed to be laid off. As several individuals purchase computers and laptops as Microsoft works on most computers, the growing revenues of individuals in developing countries offer a great opportunity for Microsoft.

Social factors

In the PESTLE Analysis of Microsoft, the social factors can be explained as follows:

· Computers and laptops have increased dramatically in all parts of the world in the coming years. The company has to adapt to consumer preferences, trends and cultural transformation. When laptop booms and computer sales boom, Microsoft benefited a lot because its operating system quickly became a favourite for everyone. But nowadays, people, more than anything, use mobile devices. Mobile individuals have become a vital part of their lives. However, Microsoft is not aware of these alterations and primarily concentrates on laptops and computers. Microsoft's primary products are consistent only with computers and not with mobile phones, and smartphone users need to be focused on by Microsoft.

Technological factors

In the PESTLE Analysis of Microsoft, the technological factors can be explained as follows:

· The world's technological innovation leader is Microsoft. It is the world's first corporation that incorporates the world's revolutionary operating system. It presented the Start button that was so famous that after Microsoft dismantled it in 2012, it has to relaunch it. It has relaunched "Internet Explorer", which was regarded as once most web browser. Internet Explorer opens the world's window. With its extraordinary features, someone can find any information in seconds and interact in other parts of the world with individuals. Microsoft has revolutionised the information age. In order to give consumers a consistent experience, Microsoft continually improves their operating system. The most popular operating system in the world is Windows 10.

Legal factors

In the PESTLE Analysis of Microsoft, the legal factors can be explained as follows:

· Microsoft is regarded as the largest company in the world. Therefore, there are very high chances of becoming involved in legal matters. It has previously given a total of 9 billion playouts in lawsuits. When 8,600 present and old workers brought proceedings against the corporation against discrimination based on sex, the company became a legal imbroglio. In the legal case, it had been mentioned that Microsoft consistently discriminated against women engineers and IT workers.

Environmental factors

In the PESTLE Analysis of Microsoft, the environmental factors can be explained as follows:

· Because every massive company in the world today goes green, it is only evident that the green initiative is a priority project of Microsoft, the world's largest market capitalising company.  According to reports published by Just Capital, Microsoft was ranked as the world's most environmentally friendly company in 2019. Microsoft gives subsidies for the use of AI to address global warming.

 

In conclusion, it can be stated that Microsoft's PESTLE Analysis mentioned above highlights the numerous components which affect its business performance. This understanding assists in assessing the criticalness of external commercial factors for any brand.

 

 

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