Strategic Analysis of Microsoft: Porter's Five Forces, PESTLE Analysis, and SWOT Analysis

STRATEGIC MANAGEMENT
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction of Microsoft............................................................................................................3
Porter’s five force of Microsoft...................................................................................................4
Pestle Analysis.............................................................................................................................6
SWOT Analysis...........................................................................................................................8
Mckinsey Model........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic analysis is based on the process or method in which organizational evaluating and
analysing its entire business environment or culture. This documentation will discuss about the
external and internal factors that help for impacting on the business in term of growth or
development. Furthermore, it is analysing the effective strategic approach in term of growth and
development. However, on the basis of effective decision which are undertaken by enterprise. In
this report, it is mainly focused on the different kind of strategies which is mainly applicable
within business growth. It will discuss about the different tool or platform to analyse the current
business condition or situation, analysing in evaluating the performance of enterprise in global
marketplace. Therefore, this report will describe about the strategic analysis of Microsoft as
company and analysing through Porter’s five force, Pestle analysis and SWOT analysis.
MAIN BODY
Introduction of Microsoft
Microsoft is a leading multinational technology company which provide the software and
hardware service of consumers in global marketplace. This company will focus on the running
their business with the help of information technology. Microsoft is mainly focused on the
strategic approach to determine the both issue of failure or success (Bindra, Parameswar and
Dhir, 2019). Afterwards, it will be highlighting the analysis of enterprise through Five Force
analysis, porters.
Microsoft Company will be achieving the revolutionary aspects and implement five force
for purpose of analysis. As per consideration of porter’s five force in order to observe the impact
on the performance of enterprise, identifying the competition level in global marketplace.
Usually, Microsoft can develop their own understanding towards the innovation concept which
deals with the other kind of competitors in global world.
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Porter’s five force of Microsoft
It is a kind of the analysis model which is mainly representing the competition in the
external factor with highest intensity of Information technology environment. However, there are
various type of issues or problem affect on the Microsoft as shown through Five Forces analysis.
Basically, company must be developed as appropriate responses to overcome certain kind of
impact on the external factors. The ability of this model which is always influencing the overall
organizational resilience. In order to measure the actual intensities of five force within Microsoft
industry as follows:
Competitive Rivalry and competition within Microsoft enterprise-
Microsoft enterprise has needed to effectively achieve the desirable success of business
but sometimes, it is mainly depending on the five forces model for identifying the effects of
enterprise with each other. Another way, it is also related to the condition of industry culture or
environment (Bogers, Chesbrough and Teece, 2019). In Microsoft, there will be considered as
moderate switching price or cost which have been corresponding moderate influence on the
entire business. For Example- Many potential clients have a moderate tendency so that they can
easily shift or move towards another products. But at certain level, it is not easy where enterprise
can upgrade their system could opt to use software or hardware items.
Bargaining power of buyers-
Microsoft is always focused on the continue satisfying the potential consumers,
identifying the overall performance of organization. By using five force model, it has been
evaluating the hardware as well as software environment which is directly impacts on the
existing consumers. Bargaining power of buyer is moderate which is mainly depending on the
specific power of consumers. Microsoft enterprise have a low substitution so that enterprise face
the difficulty in accessing the effective products of company. For Example- potential client have
faced the difficulties in identifying the better non-hardware network solution. However,
enterprise have a moderate switching cost that will be creating the considerable force on the
Microsoft enterprise. Different products of Microsoft is considerable as toughest competitors in
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