Strategic Analysis of Microsoft: Tools and Models

Strategic management
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EXECUTIVE SUMMARY
In this report it has been described about strategic analysis of Microsoft and how it helps
in evaluating internal and external factors. Besides that, it has been explained about various
models and tools of strategic analysis such as pestle, swot, porter five force and McKinsey. Here,
Microsoft revenue has increase due to change in trend of work from home. But due to various
legal case brand image is hampered. Weakness is Apple is more innovative as compared to
Microsoft and they can adopt razor model to counter any illegal use of software and hardware by
other companies. The firm follow divisional structure and system included are TPS, CRM, KMS,
etc. Moreover, skills of employees is highly advance along with competency.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic analysis refers to process in which an organisation evaluates and analyse
environment in which they operate. This cover both internal and external factors which impact
on business growth and development. Moreover, with help of analysis it becomes easy for them
to develop strategy for their growth. However, on basis of that it decisions are taken as well. A
company requires different types of strategies to expand. It is necessary to do so that proper
decisions are taken in it. In order to do analysis there are various tools and techniques that is
available (Bickel, and Kryvinska, 2017). The tools differ from one another as it provides varied
info to business. However, analysis helps in evaluating performance of firm in the market. In this
report it will be described about strategic analysis of Microsoft. so, for that different tools and
models will be used such as pestle, swot, porter five force, etc.
MAIN BODY
Microsoft Corporation is a leading organization in context of enterprise software and service.
Over the years, organization has redefined the way of doing or running enterprise within
information technology (Bruijl, 2018). Microsoft company will use strategically address the
issue of failure or success highlighted through Five forces analysis. Michael porter has been
developed this model to identify external factors and significant to the overall business
environment or culture.
In context of revolutionary aspects, five force that help to shape an effective strategy. This
is the reason why Michael Porter’s observed the five different forces. It is not only impact on the
entire organization profitability but also identifies the competition level in marketplace. It also
developed understanding where how Microsoft deals with other competitors in business world
(Gerard, 2018). The Porter’s five analysis can be divided into different ways: Threat of New
entrants, bargaining power of buyers, bargaining power of supplier, Competitive rivalry and
Threat of substitute.
Porter’s five force of Microsoft
It is based on the model that help for analysis of Microsoft on competitive rivalry as
strongest force affecting on the business. Porter’s five force is based on the holistic approach or
framework in context of strategic decision. Sometimes, it is completely away from just analysing
the present competition of Microsoft and its alternative competitors. Typically, porter’s model is
mainly focused on the Microsoft whereas how they can build a sustainable competitive
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