Microsoft Case Study

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Microsoft Case Study

Company Name

Microsoft

Type of Industry

Technology

Headquarters

Redmond, Washington, United States

Sales/Revenue

$110.4 billion (2018)

Area Served

Worldwide

Number of Stores

116 stores in 4 countries and 1 territory

Competition

Google, Unisys, Yahoo, Apple

USP

Innovative and environment-friendly products

Target Group

Technology-savvy individuals and corporations

Products

Surface, Xbox, Virtual Reality, Windows 10, Office 365

Website

www.microsoft.com

Microsoft Introduction

The American multinational technology giant, Microsoft has been into such a position that it embodies technological innovation and advancement in a simultaneous way. Through the process of developing, manufacturing, licensing, supporting, and selling computer software, in specific, Microsoft has become the other name of computer technology in a gradual manner. To understand the business competency of Microsoft it is essential to conduct a SWOT and PESTLE Analysis of the Company as such analyses are essential to ascertain the market position of a company in a thorough and explicit manner. Owing to this fact the inclusion of the concerned analyses becomes and imperative to strengthen the evidential base of the Microsoft case study.

Microsoft SWOT Analysis

The Microsoft case study should have its inception with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Microsoft. This initiation is needed to ensure a logical flow in the Microsoft case study.

Strength

Being the world’s leading software company in itself is a strength of Microsoft. The Microsoft case study reveals that till date the Company has been able to sustain its market leadership position in the context of the software industry and specifically in the sphere of cloud computing. Generating an annual revenue of $23.2 billion in 2018 (Microsoft, 2018), Microsoft’s commercial cloud has emerged as the leader in the field on a global basis. Moreover, it should be noted that Microsoft’s strength is being the world’s largest Company with a market share that should simply be called dominant. Besides, the Microsoft case study reveals that, the Company’s vast business reach is a great strength that has enhanced Microsoft’s business prospects on a worldwide basis.

Weakness

The Microsoft case study reveals that the primary weakness of the Company is frequent failure in PC shipments and this indicates the Company’s overexposure to the personal computer (PC) market. Sensitivity to vendor’s rising price and currency fluctuations should also be considered a weakness of Microsoft.  Moreover, it should be noted that presently the Microsoft is suffering from the weakness of lagging behind other competitors in terms of implementing innovation. The stagnancy that the Company has faced in this regard deserves special mention. Another weakness of Microsoft, as revealed by the Microsoft case study, is its alleviating leadership position in the Internet browser segment in specific.

Opportunities

The scope of expanding the business on the basis of innovation and successful implementation of Artificial Intelligence (AI) should be considered an opportunity for Microsoft. Moreover, it has been seen that the worldwide growth in the cloud business also provides Microsoft with the opportunity to growth its global business in a thorough manner. Besides, there are opportunities for Microsoft to grow its business through new partnerships and acquisitions both domestically and internationally. Microsoft is also provided with the opportunity (by the existing business conditions) to expand to the smartphone industry in an explicit manner. The rapidly growing market of smartphones provides opportunity to Microsoft to extend its business dimension and capitalize on product diversification.

Threats

One of the primary threats to Microsoft’s business is the rising degree of agile competition within the software and Internet browser industry. In this respect it should be noted that the Company has been exposed to the threat of intense completion from key market players like Google and Apple. Changing consumer preferences should also be considered a threat to Microsoft’s global business. Consumers are showing more willingness to purchase newer and more innovative products and stagnancy in terms of innovation has exposed Microsoft to related threats.

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Microsoft PESTLE Analysis

For the sake of ensuring an impactful completion of the Microsoft case study, it has become necessary to conduct a proper analysis of the political, economic, social, technological, and legal environments in which Microsoft operates. Assessment of the concerned factors against the backdrop of some specific environmental factors will provide a deeper insight into Microsoft’s global business position.

Political Environment

Characteristic of the political environment, in which a business operates, plays a decisive role in determining the fate of a business in a thorough and explicit manner. In this respect it should be noted that till date the political environment has been a positive contributor to Microsoft’s business success. It is noteworthy that in most of countries of its operation Microsoft has experienced political stability owing to the factors that those countries’ have stable government and progressive political mindset. Moreover, as revealed by the Microsoft case study, increase in the degree of governmental support for automation has also provided ample opportunity of growth and development to Microsoft.

Economic Environment

Economic externalities play a crucial role in shaping the business condition of any enterprise, and this truth is thoroughly applicable to Microsoft. In this regard one must take into account the fact that the economic stability presently enjoyed by a majority of developed nations has provided opportunity to Microsoft to expand its business to such countries, capitalizing on great market opportunities. Moreover, high GDP rates of a good number of developing countries have also provided growth and expansion opportunities to Microsoft. Besides, the growing rate of disposable income among the global middle class (which has enhanced the purchasing power of the concerned economic class) also has favored the growth proposition of Microsoft.

Social/Socio-Cultural Environment

The internal organizational structure of Microsoft paves the way for the Company to align to some specific social needs of its employees. In this respect the opportunities provided by Microsoft to its employees to maintain their work-life balance deserves special mention. This has met some specific socio-cultural requirements of the communities in around which Microsoft operates its business. Moreover, as a socially responsible Corporation, Microsoft has played a crucial role in contributing to the rise of an egalitarian society by including cultural diversity within its organizational structure. This has enhanced the Company’s social prestige. Besides, Microsoft’s gesture of donating billions in nonprofit organizations’ development and growth on a global basis has also enhanced its socially responsible status.

Technological Environment

As the Microsoft case study reveals; a technological environment infused with advancements has provided opportunities to Microsoft to expand its business to other sectors like the mobile phone and smartphone sector. Moreover, the rise in the volume of online transactions should also be considered a technological environment factor that has contributed to the growth in Microsoft’s online business. Besides, increasing automation in business sectors should also be considered a favorable technological environment ensuring business growth for Microsoft.

Legal Environment

Appeasing the demands of the existing global legal environment, Microsoft has proved its competence in complying with numerous national and international anti-cybercrime and anti-piracy laws, rules, and regulations. Moreover, Microsoft has also proved its efficiency as a multinational giant in terms of complying with global electronic waste disposal regulations in a thorough manner. Being an energy efficient Company, Microsoft has also remained compliant with the global energy consumption regulations quite explicitly.

Environment Factors

Appeasing the demands of a greener environment, Microsoft has emerged as an environmental-friendly and energy efficient Company that has succeeded in achieving thorough carbon neutrality since 2012 (Microsoft, 2019).

Conclusion

The Microsoft case study has revealed that the Company has sustained its market leadership position through investing in social, legal, and environmental needs. Both the SWOT and PESTLE analyses conveyed the fact that Microsoft is continuing to materialize as a leader within its industry, promoting itself as a environmental-friendly, innovative, and energy efficient business entity.

References

Microsoft (2018). Annual Report 2018. Retrieved August 10, 2019, from https://www.microsoft.com/en-us/annualreports/ar2018/annualreport

Microsoft (2019). The 2018 Corporate Social Responsibility (CSR) Report. Retrieved August 10, 2019, from https://www.microsoft.com/en-us/corporate-responsibility

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