Microsoft strategic management utilizes a SWOT analysis in order to ensure the company moves forward. This method reviews the strengths of the company, while also identifying the weaknesses. Next it looks into the opportunities the company will have in the future, and the threats it is currently facing.
For Microsoft, its strengths include the flexible workforce it has for all of its seasonal projects. It has a diverse workforce that is very loyal because of their stock purchase options. The company operations in over sixty countries and because of its rapid development, it can release new products and new upgrades regularly. The software products for this company also have high name recognition and consumer acceptance which gives the company a strategic advantage. In terms of weaknesses, the leadership did not properly anticipate the growth of the internet, nor expect it to become as popular as it did, which put the company years behind its competition during the 1990’s. Employee burnout is on the rise as a result of product launches and deadlines. There is a big dependency on the pre-installed operating systems as well. The company had little wireless market presence which has greatly brought down profit. It also provides products that only have a single application focus.
In terms of the opportunities, this company has a less expensive global telecommunication cost as the internet provides easily connection to worldwide consumers. The demand for personal computers around the work remains strong in spite of the increased growth of smartphones and tablets. In terms of threats, this company is facing a great threat from Apple and Linux. The currency exchange rate also has a negative effect on the software and hardware this company produces, as fluctuating currencies negatively impact the revenue for this company within the global market. Hardware manufacturers are now collaborating with new technologies that can replicate a lot of what Windows produces. The life span of technology is getting shorter and shorter, which places increased demand on the company to improve turnover and new product design, which then feeds into the burnout of employees mentioned above.
Overall, Microsoft strategic management utilizes regular SWOT analyses to look over the strengths of the company, then review the weaknesses so they know what to focus on in the next term. They look into the opportunities that lay ahead of them and review the threats that their company currently faces so that they can attempt to overcome them.
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