Title of the Case Problem Statement : Microsoft is an American multinational company that has been in business for 46 years. They offer computer software, electronic commerce, business platforms, the internet of things (IoT), consultation services, and personal computers (www.microsoft.com). The focus of this paper will be to examine the competitive analysis problem faced by Microsoft in the technology industry.
Scenario: Microsoft's competitive issues arise from stiff competition due to a lack of robust innovation strategies to keep up with industry giants and satisfy the changing customer needs. The company relies on the Windows operating system, which has to compete with the Linux and Mac Operating system (OS), which constantly improves their designs. Over the past 20 years, competitors have risen to challenge Microsoft, most notably Google and Amazon, which have proven to be more competitive (Kirlaya, 2020). However, in an industry where competitiveness is subject to frequent changes, finances to keep up with the trends is a risk that could affect revenues.
Delegate your assignment to our experts and they will do the rest.
SWOT Analysis
Strengths
Microsoft is one of the leading technology companies whose strength lies in image dominance, which influences its market position. The company is ranked 4 th with a market value of over $750 billion as one of the largest cloud service providers (Kirlaya, 2020). The entity has one of the most popular hardware and software products with a vast consumer base that attracts skilled creatives to offer their workforce for innovative purposes. Its presence in more than 190 countries with over 500 million users means that each nation can easily access the products (Kirlaya, 2020). The decision to introduce changes allows the company to influence buyers and, at the same time, benefit from economies of scale.
Microsoft's diverse product line presents an opportunity to influence the market on a large scale, ensuring maximum growth. Microsoft is not restricted to a particular product which is an element it monetizes ahead of its competitors. As a renowned cloud service provider, it maintains growth which is estimated to be worth $1 trillion (Kayid, 2020). Microsoft has a dominant market share with ready capital, which influences product changes. The company has five business segments earning approximately $3 billion from each business division (Kayid, 2020). For instance, an innovative strategy on applications introduced in the market is independent of cloud computing changes. Indeed, under the commercial cloud Azure office 365, the company generated revenues worth $23.2 billion (Kayid, 2020). Introducing products faster through different channels guarantees that the entity enjoys a larger market share and returns ahead of competitors.
Weaknesses
Difficulties adapting to change has been a significant weakness that limits the scope of innovativeness. Since the company developed its original windows products, it has focused on improving products to keep up with the competitors but not necessarily dominant. For example, the 2007 windows improvements affirmed that the company relies on the me-too mentality by improving on an already satisfactory product (Kirlaya, 2020). On the other hand, its competitors such as Google and Facebook constantly adjust features and testing products in the market, which is a critical element of asserting dominance and expanding the customer base. The unnecessary changes made are costly as they require billions of dollars in research and development on products that have proven their viability.
Failure to research customer needs affects innovation and competitiveness. In the technological world, the desire to keep up with consumer preferences through feedback guarantees that a company can strive to satisfy the needs. However, Microsoft embraces the process of running counter to competitors to keep rivals in check but not for the intent of customer satisfaction (Kirlaya, 2020). For instance, without an upgrade to a Windows phone to accommodate WhatsApp features, most users have to switch to android or Mac. When the sale of surface pro computers and phones is at a disadvantage compared to Apple or Google products, demand declines.
Opportunities
The demand for artificial intelligence is increasing, which offers an exploration niche. Artificial intelligence (AI) is the future of technology that will likely be adapted by varying sectors to influence change. Azure Al platform presents endless opportunities to impact science and the world of business through Microsoft Cognitive Services (Kayid, 2020). Additional investment in research and development can offer solutions to gaming, e-commerce, and home automation. As a result, the company can benefit from a more extensive market base. Al solutions guarantee that researchers have the tools to their most challenging problems to transform industries.
Maximizing on end-user business strategy is a viable opportunity. Microsoft enjoys consumer loyalty which increases the capability to influence how buyers perceive products. The advantage is essential to introducing new applications that are readily acceptable. Additionally, a ready market saves on advertising costs incurred in creating awareness. Creating a user base operating system results in simplified maintenance and management (Hunger, & Wheelen, 2012). Through such an innovation, the vast majority of workers can access Microsoft devices at the comfort of their offices.
Threats
However, innovations are susceptible to cyber-attacks which can cripple developed models. Hacking can adversely impact consumer data that technology companies rely on to prove their credibility and integrity. In recent years, attacks on Microsoft windows have affected the application's capacity to function to its customers' needs. When competitors perpetuate hacking, the results can be catastrophic. For instance, the Solar Winds malware incident affected the Microsoft supply chain, heightening vulnerability in the United States (Wadhwa, 2017). Since the private sector mainly controls technology, the extent of attacks is primarily not intervened by the government. The risks associated with malware can outweigh the benefits of developing a model.
Conclusion
Microsoft's ability to remain competitive in the technological industry lies in its strengths and opportunities. The company serves over 500 million customers through its five segments, with over $3 billion in revenue from each business division (Kirlaya, 2020). The diverse product line and a dominant brand is a pathway that can ensure the long-term benefits of innovative efforts. Also, the capacity to utilize artificial intelligence puts the company in an advantageous position to influence varying markets through cloud computing.
However, weaknesses and threats within the industry are significant hindrances to the company's competitiveness. Lack of vigorous efforts to introduce new products limits the scope of competitiveness. In most times, Microsoft has to play catch up to industry giants such as Google and Apple (Gürel, 2017). Additionally, failure to rely on customer needs and wants means that the company does not materialize viable feedback. When customer needs can be satisfied elsewhere, demand for products shifts (Hunger & Wheelen, 2012). Still, rigidity to change is a negative aspect, especially in technology. Failure to keep up with market players leaves the company products at an inferior level to market leaders.
Recommendations
Partnerships can enable Microsoft to cement its position in the market and, at the same time, introduce end-user products. The company has the revenue to influence businesses that can improve daily operations and product development. Indeed, competitors such as Facebook thrive through strategic partnerships with Amazon that encourage creativity, access to customers, and business insights (Gürel, 2017). Through innovative devices such as tablets, customers do not have to search for substitutes from Apple. Through partnering with market players, devices that are appealing to consumers than what is in the market can be accessed.
Purposeful product research and development is essential in providing products that cater to market needs. The life cycle of innovative product trends is becoming shorter and shorter, requiring evaluation of strategies stage by stage (Silineviča et al., 2016). A process focused on the recreation of opportunities is economically viable, especially since there is a vast market scale to introduce products. With reliance on distinctive business models and buyer behavior, product research can yield exceptional results.
References
Gürel, E. (2017). Swot analysis: A theoretical review. Journal of International Social Research . 10. 994-1006.
Hunger, D., & Wheelen, T. (2012 ). Strategic management and business policy toward global sustainability. Singapore: Pearson
Kayid, A. (2020). The role of Artificial Intelligence in future technology.
Kirlaya, V. (2020). Executing Product Broadening Procedures for the Sustainability of an Innovation Organization Microsoft Corporation Vinayachandra. 3. 29-40.
Silineviča, I., Igavens, I., & Amantova-Salmane, L. (2016). new product development. Latgale National Economy Research . 1. 116. 10.17770/lner2016vol1.8.1850.
Wadhwa, A. (2017). A Review on Cyber Crime- Major Threats and Solutions. International Journal of Advanced Computer Research . 8. 2217-2221.
