Microsoft Corporation: SWOT Analysis and Competitive Strategies

This report provides a comprehensive SWOT analysis of Microsoft Corporation, examining its strengths, weaknesses, opportunities, and threats within the competitive landscape of the technology industry. The analysis delves into Microsoft's ability to compete on analytics, exploring its enterprise-lev...Read More

Running head: COMPETING ON ANALYTICS – Microsoft Corporation 1
SWOT Analysis
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Institution
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COMPETING ON ANALYTICS – Microsoft Corporation 2
Executive Summary
The paper contains content about the Microsoft Company. It’s a giant IT company which is
known to the whole world. However, even large companies have threats and weaknesses when at
the same time they have more opportunities. That’s why there is a SWOT analysis which will
also be done on the organization. The competition that is also experienced by the company is
also discussed in this context. In terms of competition, the context fully explains how the
management uses its methods and analysis to fight competition. The paper closes with a
conclusion which summarizes everything that has been presented in the report.

COMPETING ON ANALYTICS – Microsoft Corporation 3
Table of Contents
Introduction 4
SWOT 4
Strength 4
Weakness 4
Opportunity & threats 5
Enterprise level Method 6
How Microsoft Corporation Should Compete Internally 8
Edge of Microsoft in The Next Five Years 10
Conclusion 10
References 11

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Introduction
Microsoft Corporation is an American International technology firm whose head offices are in
the USA (Markham, 2015). The corporation was founded by Paul Allen Bill Gates on the year
1975. It is responsible for developing, funding, and sell software and hardware related to its
software. Its known for its famous operating systems called Microsoft Windows, the Internet
Explorer and the Microsoft office suite (Richardson, Thies, 2015). As by 2014, the Corporation
was the best in selling software in the world.
Microsoft Corporation SWOT Analysis
Strengths-
Required Brand.
Microsoft is the controlling provider of hardware goods, software, and facilities.
Technologically innovative firm.
Microsoft has prioritized revolution in the current technology whereby it developed a
department called Microsoft research, one of the most prominent computer science research
organization.
Product Selection
The firm provides some software, services, and hardware solutions across different customer
levels.
Its Operating system
The firm owns the bestselling operating system in the world.
Better distribution methods
Microsoft Corporation markets its product all over the world using many fora than its
competitors.
Weakness;

COMPETING ON ANALYTICS – Microsoft Corporation 5
Uncontrolled counterfeit
The firm is not able to regulate forged software in developing countries thus illegal use of their
software is still evident in developing countries.
Lagging in innovation
The firm has been upgrading its products but without new features added regarding operating
system capabilities.
Legal records
Microsoft is respondent to many unresolved cases facing it. The Firm is knotted in numerous
lawful accounts linking it to its product design, production and performance obligation and other
proceedings involving agreements, hire issues or property rights.
Opportunities:
Planned Alliances.
The firm will get into new corporations for the development regarding its technology and
innovation Such partnerships will enable Microsoft to gain high market share.
The demand for smartphones.
Microsoft can invest in the growing demand for smartphones.
Threats
Rivalry
The software industry is highly competitive making Microsoft experiences massive competition
in all its products. Its Internet Explorer products face stiff competition from browser built by
Google. ( Yoffie, Cusumano,2015)
Pirated Market
Microsoft faces the challenge of piracy of their product mostly in Africa and Asia which makes
them lose many dollars each year.
Speedy technological fluctuations
The world technology is changing every day. The Microsoft company has to use more money to
update their software frequently.

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Ability to Compete on Analytics
For a firm to contest in analytics, the business must carry out tests all aspects of their corporate
and study from each one of them (Sekaran, & Bougie, 2016). Being a big firm, Microsoft
depends on analytics to regulate the critical success factors:
Elasticity in measuring expenditure.
Creation of export markets.
Use of effective labor practices.
Access to the latest technology.
Better cost controls
Pillars of Analytics Competition
There are four pillars of analytical competition. True analytical competitors exhibit all four of the
attributes.
Distinguishing Capability
Where analytics is to aid competitive policy, they have been in support of a significant and
distinguishing capability. The organization assesses analytics as something important that aid in
the competition. Microsoft core responsibility is to ‘produce high-quality software with low
production costs’ thus selling goods at a lower price (Chang, 2016). This strategy helps
Microsoft Corporation to generate high-profit margin and maintain customer satisfaction. Here
Microsoft maintains a cost analysis and quality analysis through every step of the process to
make the product reach the targeted customer.
An Enterprise-Level Method
Analytics has to be controlled and completed extensively accessible in the firm.
Care is taken to manage data and analyses efficiently and effectively (Jetzek,2016). Microsoft
used this approach to eradicate redundant steps, bring into line all steps in a continuous flow,
recombining the labor dedicated to that activity and continually striving for improvement. By
utilizing the data acquired from their customers and applying the improvements effectively has
made Microsoft one of the leading software producing company.

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Senior Management Commitment
Changes in values, procedure, conduct, skills, and a desire to achieve the goals must be the main
objective of the CEO. The Gates, the former CEO of Microsoft Corporation was always a good
example to another worker in his determination to achieve the firm's goal(Brindle, & Lay). The
current CEO, Satya Nadella, has led to continuous improvement in the company.
Huge-Scale Motivation
Analytical contestants gamble their approaching business success on an analytics-based approach
(Davenport, & Harris, 2017 ). The Microsoft corporation realized a gap in the market where
demand for cheaper software is on the hike. Today it produces more inexpensive and extensive,
friendly operating system compared to their competitors. It has given the firm a more significant
advantage compared to their competitor.
Stages of Competing on Analytics
Five stages describe the track that the firm can trail from having nearly no analytical
competencies to being a solemn analytical contestant.
Analytically Impaired
Organizations have some desire to become more analytical, but thus far they lack both the will
and the skill to do so. When the founders of Microsoft got into the market, they had few
customers around the world. But due to hardware, innovation reduced cost production has
enabled the firm to become one of the largest software manufacturing having their product at low
cost and of good quality.
Localized Analytics
Although Microsoft is the big company, it hasn't been able to fully invest in developing countries
such in African and in countries in the Far East. In this countries we have a huge market for the
firm to invest in having technology growing every day, we expect the need for software to bigger
in future in this countries.
Analytical Aspirations
The companies grasp the worth and the ability of analytical rivalry, but they expression major
competence hurdles and are not able to overcome them soon. Microsoft Corporation is facing

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challenges in curbing piracy and illegal use of their product mostly in Africa and Asia. It makes
the firm not to attain the supposed profit.
Analytical Competitors
Microsoft Corporation has high analytical capabilities and an enterprise-wide approach. Today
Microsoft is using modern and improved technology in their production process which has led to
the production of better software that up to date and using the modern technology.
Competitive advantages with Analytics
Firms take different approaches to attain competitive advantage with data (Nagle & Muller,
2017). The Microsoft corporation started assessing the market gaps and needs of the customer
than any other firm by providing software and other goods as per the specification of their
customers. As a result, Microsoft has developed unique strength having a large share if the
market as follows:
Hard to duplicate
Microsoft software including the operating system is manufactured using unique features and
improved technology to curb duplication from their competitors.
Continuous innovations and renewal
Microsoft corporation uses the modern technology to boost innovation in the industry. After a
short period, they update their software to meet the customer need and adapt to changes in
technology
Adaptable to many scenarios
The Microsoft commodities can be used in any field in modern life. The firm has developed
much software to cater for needs of every customer
How Microsoft is Competing Internally with Analytics
Microsoft uses a comprehensive set of capabilities, which are integrated multiple departments
and teams across the company. There are four essential attributes on which a firm's internal
analytics should be applied, they are Finance and accounts management, Manufacturing, and
Human Resource management (Grant,2016). In Microsoft finance department they use advanced
analytics to improve sales and profits and come up with the method to reduce loss. The firm has
developed a better system for accounting to help in determining whether the company is
operating on loss or profit and still suggest the best sales approaches to use. Microsoft's

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manufacturing process is using modern technology to meet the needs of every customer. They
also reduce production cost to lower the price of their commodities. The Microsoft's Human
resource mainly deal with customer satisfaction where they get the feedback from the customers
and forward them to manufacturing departments. Microsoft has the forum where you can easily
give your suggestion or query.
How Microsoft Corporation Should Compete Internally with Analytics
The firm should come with better selling practices such as selling their product at the affordable
price to reduce piracy and come up with better selling practices. The company should also
improve their production processing in the way that they will spend little on the production
process. It will enable the firm to provide low price goods and services. Finally, the firm should
come up with a better way of involving the customer in their production process from the
beginning to have better customer involvement that will lead to customer satisfaction.
How Is Microsoft Competing Externally in Analytics?
For the to firm compete, for analytics, its companies should improve their external processes.
These processes are related to customer demand and supplier relationship.
In customer demand, the firm is working hard to gather information on customer demands.
Microsoft is a big company with many customers around the world have come up with many
forums whereby their customers can easily reach them. It is also using modern technology to
strive to meet and improve the needs of its customers.
The firm has employed many experienced employees who are providing efficient services and on
time. It has led to the growth of the firm I terms of commodities the trade as a result of customer
satisfaction
How Should Microsoft Compete Externally in Analytics?
The firm should strive to meet the demand of customer who is in third world countries such as in
Africa and Asia. It will reduce piracy and illegal use of the firm softwares. The firm should also
set offices in every state to meet a better forum for their potential customers to air their view of
the firm's services and commodities. The company should also produce commodities of fair price
where each customer can afford.

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Edge of Microsoft in The Next Five Years
In the next years, we expect the needs of new software to be a hike as a result cheaper
technology introduced. Microsoft is one of the leading companies in software production in the
world will have to increase its software products to meet this demand. The firm will have to
work very closely with customers that will make it move closer to the customers or create more
forums for customer involvement. All this factor will result to the growth of this firm with the
significant margin which will enable the firm to invest in third world countries and will be able
to curb piracy and illegal use of its’s company software and services.
Conclusion
In conclusion, Microsoft Corporation is a company of big impact as technology is concerned
being one of the major producers of software around the world and having the world leading
operating system. Microsoft. The firm is established in the market in such way its able to curb
competition from its competitors by producing better software, stable, and of low price leading to
customer satisfaction. Its operating system has given the firm a huge advantage as they produce
the software that is compatible with their operating system. Due to the firm’s better management,
we expect the firm to grow in near future and reach to all corners of the world.

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References
Chang, J. F. (2016). Business process management systems: strategy and implementation.
Auerbach Publications.
Davenport, T., & Harris, J. (2017). Competing on Analytics: Updated, with a New Introduction:
The New Science of Winning. Harvard Business Press.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Jetzek, T. (2016). Managing complexity across multiple dimensions of liquid, open data: The
case of the Danish basic data program. Government Information Quarterly, 33(1), 89-104.
Markham, J. W. (2015). A financial history of modern US corporate scandals: From Enron to
reform. Routledge.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Richardson, T., & Thies, C. (2015). Microsoft Office 2013/365 and Beyond: Computer Concepts
and Applications. Stylus Publishing, LLC.
Schultz, A. J. (2017). Africa’s been raided enough: Collateral damage to intellectual property
systems and alternatives to obtain value. Journal of Intellectual Property Law & Practice, 12(3),
168-178.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach.
John Wiley & Sons.
Yoffie, D. B., & Cusumano, M. A. (2015). Strategy Rules: Five Timeless Lessons from Bill
Gates, Andy Grove, and Steve Jobs. HarperBusiness.