Microsoft company growth strategy
Microsoft company growth strategy
Strengths Internal Strategic Factors
1. Leading Software Company
Microsoft company growth strategy
– Microsoft is the undisputed global market leader in software technology specifically in cloud computing. that is the world’s largest developer of Windows operating system and the leading cloud drive. Its commercial cloud generated average annual revenue of $30.1billion in 2019
2. World’s largest Company with dominant market share
Microsoft company growth strategy
– Microsoft ranks 4th with a market value of $750.6 billion in the world’s largest companies in 2018. It also owns the largest market share with a 3% point gain among the five largest cloud service providers(Microsoft, AWS, IBM, Oracle, Google).
3. Vast market reach
– Microsoft operates in more than 190 countries worldwide. After launching the new version of Windows 10, it has over 750 million installs worldwide.
4. Constant growth
– The latest earning results of Microsoft clearly demonstrate its strong growth in the cloud business. According to the analysts, Microsoft will be worth $1 trillion in the next few years in future.
5. Addition of newer SKUs (Stock Keeping Units)
Microsoft company growth strategy
– Microsoft has recently added newer SKUs to its brand portfolio. This includes Microsoft 36o combining Office 360 and Windows 7 and 8 and 10 window. Its M365 is a multi-billion dollar business.
6. Reputed Brand with superior customer loyalty
– Microsoft has 1.2 billion Office users and 60 million Office 365 commercial customers. It has undoubtedly the greatest loyal customer base. Customers trust on brand products and loyal with customers .
7. Huge Market Capitalization
– With 776 billion United .State . dollars of market revenue , Microsoft is one of the largest in-tech industry on the world . It has a steady presence and was also listed in the Top 10 Global Companies in Price Water house Coopers’ report updated on 31st March 2018.
8. Effective Adverting platform
Microsoft company growth strategy
– With its strong and effective marketing strategies, Microsoft has influenced people all over the world..
9. Brand reputation
– Microsoft was ranked 4th by Interbrand as the world’s most valuable brand with the highest brand strength and brand equity in the digital industry.
10. Easy to use software
– Microsoft is known for its hi-tech and quality products offerings
Microsoft product are very to use user friendly
, , Apple, Google, and Amazon are quickly grown in market trails.
Lacking in leads the market in Internet browsers
– While Google, Safari, and Firefox have been gaining the market share in internet browser segment, Microsoft is losing the market.
5. Unsuccessful steps of Microsoft
– Microsoft’s invest like WebTV, Link Exchange, Massive, and Danger resulted in failures and divestitures and failed . unprofitable investments in these bossiness are the biggest weaknesses of Microsoft.
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Opportunities – External Strategic Factors
1. Cloud business growth
– Its cloud-based services have gained immense growth and success in recent years. so, there’s an chance for Microsoft to expand its cloud business in market .
2. Innovation and Artificial Intelligence
– Microsoft has a massive opportunity in many innovative areas like AI and game technology.
3. Partnerships and Acquisitions
– Microsoft can focus on entering into new strategic alliances and partnerships. .
4. Smartphone industry
– The fast-growing market of smartphones and tablets offer an excellent opportunity for Microsoft. .
5. Cost leadership strategy
– Microsoft can gain the opportunity of increasing its sales and revenue by offering its products at low prices.
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Threats – External Strategic Factors
1. .The number of women and minorities working was quite low, severe criticism and arguments against the company’s HR policy.
2. Gay reference controversy
– Microsoft has faced many criticisms for its Xbox Live game service. Reference to homosexuality and gays can’t be used in the and user’s profile, as the company considers this matter ‘unsuitable’ and ‘offensive’ for other users.
3. Aggressive competition
– Microsoft is in intense competition with Google and Apple. .
4. Changing preferences of consumers
– People are highly attracted to the market of smartphones, notepads, and laptops. Microsoft has modest shares in these markets.
5. Open source projects
– Like Linux OS and Open Source Office, many new open source projects have successfully entered into the market offering similar services for free.
6. Cybercrime and piracy
– Rising cybercrime thefts and software piracy issues have dramatically affected Microsoft’s security network system.
Microsoft SWOT analysis
1. Upgrade its software and bring innovation.
2. Continue enhancing its brand reputation through effective marketing tools.
3. Update its internet browser market and take initiatives to increase the market share in this segment.
4. Build more competitive advantages to compete with technology rivals like Google and Apple.
5. Increase partnerships, strategic alliances, and acquisitions to strengthen its market standing.
6. Resolve the cybersecurity issues and address the global cyber thefts by advancing its security network systems
