SWOT Analysis of Microsoft

Microsoft is a multinational corporation, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. The company is headquartered in Redmond, Washington, USA. Microsoft has expanded into markets such as video game consoles, CRM applications, server and storage software, and digital music players. Microsoft has made a presence on the Web with the MSN internet portal and Bing Search Engine. The SWOT Analysis of the Microsoft is given below:




  1. Microsoft is the Multinational Company working throughout regional subsidiaries to diminish cultural dissimilarities in more than 60 countries.
  2. Microsoft has the best and acceptable software of the world.
  3. Windows series are globally accepted and recognized. 
  4. Sales and profits are growing at 30% a year over past six years.
  5. Microsoft has merger, acquisition and alliances with 92 companies over past five years.
  6. Huge quantity of capital and existing resources dwarfs its competitors. 
  7. Microsoft has strong brand name and recognition, and has rapid product development.
  8. Microsoft office productivity set (Word, PowerPoint, Excel, Outlook, etc.) is broadly used through out the world. 
  9. Microsoft is also recognized for offering product fixes and new product updates right through its group.
  10. Microsoft is a highly innovative company which offers new products frequently.
  11. Diversified and flexible workforce for different projects and flexible culture allover the globe.





  1. Microsoft could not identify the expansion opportunities of the internet.
  2. Microsoft has no easy-to-use alliance apparatus to compete with the competitors effectively.
  3. The company has expensive software for a small business, emerging market, and non-profit organizations.
  4. It is observing decreasing revenue in the server software operating system divisions.
  5. The company is relying on hardware manufacturers to pre-install Microsoft’s personal computer operating system.
  6. Total assets are steadily decreasing. 
  7. Microsoft has a little presence in the wireless market and Windows CE.





  1. Positive customers’ awareness in the direction of new technology around the globe
  2. Microsoft is growing into the video game market by offering products such as the Xbox.
  3. Mobile phone markets are growing in developing countries which provide the opportunity of introducing new mobile software.
  4. Video game market revenue is expected to reach at $66 billion in 2012 as compared to $12 billion in 2008.
  5. Improving economic condition after the financial crises 2007-10 is also expanding the opportunities for company.
  6. Since internet users are increasing rapidly therefore a new market could be explored by offering new and innovative products to them.





  1. Microsoft has abundant court fights with other companies concerning software developer lawsuits and antitrust.
  2. Linux and Apple have snatched Microsoft’s more than 80 percent market share of the desktop operating market.
  3. The company is facing strong competition from the main rivals such as Oracle, IBM, etc.
  4. The bargaining power of buyers is high for the reason that many alternative products are available to them.
  5. The company is facing the problem of huge taxes from various countries due to which it has to increase the prices.
  6. Increasing cyber crime is also causing problems for the company.
  7. Life cycle of Technology is become shorter day by day. 
  8. Currency exchange rates influence demand for application/operation and software.

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