Thus, the opportunities shown in this area of the SWOT analysis of Microsoft indicates the need for diversification and product improvement. Also, Microsoft has opportunities to improve the attractiveness of its products through continuous improvement of their security features. At present, the company’s hardware products are not as competitively strong as the products from other firms in the computer hardware market. Another opportunity is for Microsoft to innovate computer hardware products, so as to increase revenues from hardware sales. In this way, the company can take advantage of other avenues of business growth.
For example, Microsoft can diversify through new business development or mergers and acquisitions to establish operations in new markets or industries. In this regard, the company has the opportunity to grow based on diversification.
Microsoft teams logo software#
Microsoft Corporation is primarily a software business that heavily relies on the popularity of the Windows operating system.
Innovation for computer hardware products.The following opportunities are significant in Microsoft’s technology business: This area of the SWOT Analysis model focuses on opportunities or external strategic factors that can support business growth. Opportunities for Microsoft (External Strategic Factors) Based on the strengths outlined in this area of the SWOT analysis, Microsoft needs to improve product features and intensify its hardware development efforts to ensure competitiveness. Moreover, the company’s product portfolio shows dependence primarily on software products, which weakens the business against competitors that have dominant hardware and software products in the market. On the other hand, the imitability of some products is a weakness because it could reduce the strength of the Microsoft brand. In this regard, cyber security is a product aspect of competition among firms in the computer hardware and software industry. This factor is a weakness because it limits the attractiveness of Microsoft products. For example, the Windows operating system remains a target of countless cybercrime attacks globally. Microsoft’s products are vulnerable to cybercrime. Lack of dominant computer hardware products.In the case of Microsoft, managers must address the following weaknesses: Organizational weaknesses or internal strategic factors that slow down or reduce business development are considered in this area of the SWOT Analysis model. Microsoft Corporation’s Weaknesses (Internal Strategic Factors) Thus, the strengths in this area of the SWOT analysis of Microsoft show that the organization has strong foundations to compete against other large firms in the global industry. For instance, the company can establish an alliance with a hardware manufacturer to create hardware products that use Windows OS. In addition, the strength of alliances with other firms contributes to Microsoft’s capacity to influence the market in its favor. For example, as more third-party software developers create programs for IBM PC-compatible operating systems, the company’s Windows operating system becomes even more popular. Microsoft also benefits from positive externalities with existing products in the market. This strength contributes to the company’s ability to attract customers, especially those who view brand strength in relation to reliability. The Microsoft brand is one of the strongest in the computer hardware and software market.
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