Microsoft SWOT Analysis


Microsoft is a worldwide corporate organization that makes software products including Microsoft Office, Microsoft edge web browsers, Microsoft Windows and Internet Explorer. The corporation is responsible for manufacturing, supporting, licensing, and selling electronics, software’s, and multipurpose personal computers (Microsoft, 2016).  With its headquarters in Redmond, Washington Microsoft is the largest software maker in the world, and the corporate also makes hardware products like the video gaming brand, Microsoft Xbox video gaming console, and personal computers. This paper will analyze the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of Microsoft Company.


Localization has boosted the performance of Microsoft services in most parts of the world, making it achieve higher returns and curb competition. The company uses other manufacturers in realizing operations in case the current ones do not match up to their needs. Microsoft has different sources of components, raw materials, and supplies and it is also able to get the materials at a discount since it purchases in high volumes. Such strategies and diversification of products and services have made Microsoft relevant despite competition from Apple, Google, and Oracle. The company is achieving its purpose and integrating its activities annually, evaluating and rewarding employees to being resilient in the competitive market. The company primarily has more wins than losses, hence making it have high stock training even with occasional failures.


However, Microsoft experiences some gaps, including unresolved legal proceedings in product design, and it also lags in innovations as compared to other brands like Apple. Countries like China and India can counterfeit the Microsoft software business an operation that the company has failed to control (Sun, 2015).  The company plans to meet the challenges by changing to razor and blade models whereby it offers cheap software to stop counterfeiting hence more revenue. New strategic partnership alliances can also help curb competition, and the company sets out to capitalize in response to the growing demand for smartphones.


External factors globally tend to affect the corporate regarding new opportunities and challenges. These factors reflect on the operations of computers, software, and hardware in Microsoft’s market. The factors that promote new opportunities for the company include political stability, governmental support for autonomy, and the increase of agreements in international trade. They pave the way for the company to be more resilient in the economy market. Economic factors such as rapid development countries through technology, financial stability, and the growth of disposable income for the middle class also contribute to the opportunities that the corporation gets with time. The company, therefore, experiences balance since there is a constant demand for high-quality customer service that provides an increased preference for green products and recyclable materials.


The threats of Microsoft Company mostly are from technology whereby competition arises due to the rapid growth of mobile technology, and increasing cultural diversity. Online transactions are also on the increase, and thus many corporations are emerging to give competition to Microsoft (Sun, 2015). Legal issues also affect the corporation in that there is an increase in the disposal of waste laws and regulations that might be expensive for the company to meet. The company should focus on opportunities to boost its expansion and goals. The company can also make use of other regulations that favor them like the improved patent laws and energy consumption laws that allow it to be prosperous.

SWOT Summary

Microsoft Company is dominant because it is a reputed brand that continuously prioritizes innovations in technology through firm researches and development. Its strengths in product portfolio for different consumer classes create a broad market for distribution and offers the best operating system for computers in the world. The weaknesses of unresolved proceedings on product designs require the company to provide cheap software to compete favorably.  On the other hand, opportunities such as government support which fosters its development through encouraging international trade to expand its market operations globally. Technological changes are threats that can be resolved by encouraging more revenue sources to cope up with the new trends in the market.


Microsoft’s company will obtain the right amount of revenue, and its share prices by trading at a premium which enables the continuity of the growth prospect. With its profitable business model, the company can increase its stock prices by attracting more potential investors. They can achieve this by developing the precise products and services that the consumer needs. Adoption of the SWOT analysis will enable Microsoft to beat Amazon in cloud computing, an operation that Amazon founded. The primary outcomes of Microsoft and strongholds will help in creating a bigger web thus attracting more customers.




Microsoft. (2016). Empower every person and organization to achieve more Microsoft Enterprise. Retrieved from

Sun, L. (2015). SWOT Analysis of Microsoft Corporation. Retrieved from