Swot Analysis of Microsoft
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SWOT Analysis: Microsoft Corporation
Strengths
Applications and operations divisions along with recently created online service network divisions (MSN)
Flexible workforce through contingent workers for seasonal/cyclical projects
Loyal, hardworking, and diverse workforce (20% minority, 26% women) who, in addition to good compensation, have an opportunity to do well financially through stock purchases
Multinational corporation operating through regional subsidiaries to minimize cultural differences in more than 60 countries
New product, Neptune , is a Windows interface and is an example of smart software
Relatively rapid product development processes that allow for timely updating and release of new products
Revenues and profits rising at 30% a year with merger/acquisition or investment in 92 companies over past five years
Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and cost-effectiveness
Top rating from Fortune for best company to work at and most admired company
Windows 95, 98, 2000 series, and Windows NT are globally known as the PC desktop operating system with a market share of about 88%
Worlds largest software company with global name recognition and strong reputation for innovative products
Weaknesses
Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet
Bill Gates has become Microsofts chief software architect but has not yet developed a substantially new line of products
Dependency on hardware manufacturers to pre-install Microsofts PC operating system
Downside of product launches and deadlines contributes substantially to employee burnout
Employee turnover has increased from 6% for a ten year period to 7.4%
Falling sales in the operating systems and server software sectors
Frequent reorganization, red tape, and autocratic atmosphere dampen employee creativity leading to a loss of key personnel and chilling of communication and innovation; 5-layers of management
IRS audits in 1989 and 1990 revealed employment status of contingent workers for whom Microsoft did not withhold taxes nor allow to participate in Microsofts Savings Plus Plan or Employee Stock Purchase Plan, leading to a finding of tax liability for Microsoft in the “permatemps” Vizcaino litigation
Little or no significant presence in the wireless market and Windows CE has been disappointing
Not a key player in the Internet space and few products for Internet applications
Perceived by many as a cut-throat competitor that uses its dominant market position to marginalize competition by stealing/destroying the competitions products, stifling product innovation, and decreasing the availability of competitor products
Products have a single application focus and do not work well with or on-top of other products
Reputation has suffered because of entanglement in antitrust and “permatemps” Vizcaino litigation
Opportunities
Cheaper global telecommunication costs open new markets as people connect to the Internet
Federal