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Microsoft Corporation Analysis


Microsoft continues to make substantial progress in computer software production while investing in the stock exchange to position the organization for continued expansion. Microsoft Corporation identifies the most important problems based on its macro- or remote environment (Kang, 2013). By taking into account the situation of the computer hardware and software market, Microsoft can implement strategies that address these issues and the related external factors. However, the organization must improve to give it a better competitive advantage and make more profits.

Environmental Scan

General Environment

The general environment consists of the economy, cultural trends, political/legal trends, and technological trends.


The company has made a substantial impact on the local as well as the international economy. In the fiscal year 2022, Microsoft produced record results despite the fast-paced climate. $198 billion in sales and $83 billion in operating income were recorded. Furthermore, Microsoft Cloud’s yearly revenue reached $100 billion for the first time. Moreover, the organization has made substantial improvements in the stock exchange market, as there were 86,465 registered holders of record of our common stock as of July 25, 2022. Under the ticker symbol MSFT, Microsoft’s common stock is traded on the NASDAQ Stock Market (Hakobyan et al., 2019). On September 20, 2016, the Board of Directors endorsed a share repurchase program permitting purchases of up to $40.0 billion. The share repurchase program began in December 2016 and ran until February 2020.

Moreover, the Board of Directors authorized a share repurchase program on September 14, 2021, with a $60.0 billion maximum. This share repurchase program has no set end date and may be discontinued at any moment. It started in November 2021 after the previous program, authorized on September 18, 2019, was finished.


The company’s culture is the cornerstone of the organization’s mission and strategies, so fostering it is of utmost importance to us. Microsoft continuously strives to bridge the gap between the lived experiences of the more than 220,000 Microsoft employees and our avowed culture. This requires our dedication to practicing a growth mindset consistently and challenging our fixed thinking with humility, curiosity, compassion, and the understanding that, while none of us will ever be flawless, we can continuously improve (Hakobyan et al., 2019). This growth attitude has been quite helpful to us through the historical developments of the last few years. It keeps the company engaged in the daily fascination with customers. It enables us to better look out for one another and work together more successfully as a team. Moreover, it significantly impacts our long-standing dedication to diversity and inclusion.

We must represent the world if we are to serve it. Microsoft works hard to broaden representation each year, and 2022 was no exception. As seen in our most recent Diversity and Inclusion Report, we made the most significant strides in several demographic groupings in recent years (Hakobyan et al., 2019). Regarding the data we publish, we are among the most open businesses of our size, and we constantly push ourselves to get more insight into our accomplishments and areas in need of improvement. To reflect our workforce more generally, we have incorporated new data, such as military status, gender representation by region, worker exits, and extra compensation data.


Due to the political stability of most markets around the world, Microsoft has the chance to improve its investments and evaluation measures (Warner, 2019). For example, the company could increase its European sales and marketing spending to get a comparable increase in revenue. On the other hand, because of the increased official support for automation, Microsoft may be able to increase its sales of computer technology to governmental customers. This external component is crucial when it comes to large deals involving governmental organizations. A macro-environment that encourages an increase in Microsoft’s overall sales is also created by the proliferation of international trade deals (Hakobyan et al., 2019). Due to this external element, the corporation finds it less difficult to conduct business in international markets. However, Microsoft is also threatened by the expansion of international trade agreements. These agreements may enable foreign businesses to compete more successfully in industrialized nations like the US.


The quick introduction of new mobile devices can improve the performance of Microsoft Corporation. The rapid adoption and rising demand for mobile technology caused this development. However, the challenge posed by this external technological factor fosters competition with Microsoft. Such an opportunity might be seized by other technology businesses looking to enter the sector (Hakobyan et al., 2019). On the other hand, as the number of online transactions increases, Microsoft may be able to develop new technologies that support secure transaction processing. The risk that Microsoft would see a corresponding surge in cybercrime attacks owing to the volume of online transactions is addressed in Microsoft’s SWOT Analysis. Solutions that aid businesses in automating more of their processes also allow the company to grow.


Microsoft Corporation has the opportunity to create more efficient recycling and disposal techniques that enhance brand awareness as electronic waste disposal laws increase. However, there is a potential that this external legal threat will make it harder for the company to address the environmental impact of its operations. On the other hand, the evolving patent laws support Microsoft’s international growth by progressively eliminating problems like computer software piracy (Hakobyan et al., 2019). The business has the chance to improve its products so that it can assist client organizations in using more energy-efficient computing techniques to decrease their energy usage.

Task Environment

Competitors Many other well-known organizations deal with the production of the same technology, just like Microsoft Corporation. Some of these firms are the biggest rivalries of Microsoft, and they include; Apple (AAPL), Google (GOOG), SAP SE (SAP), IBM (IBM), and Oracle (ORCL), which are among those on the list.
Employees According to information in the company’s annual Form 10K filing with the SEC, Microsoft had 221,000 workers as of June 30. This is an increase of 40,000 persons or 22% over the same period the previous year.
Customers Just a few of Microsoft’s customers include private individuals, small and medium-sized businesses, enterprises, governmental organizations, academic institutions, Internet companies, application developers, and manufacturers of original equipment. Consumers and small and medium-sized businesses from distributors, resellers, and OEMs primarily obtain Microsoft’s products.
Suppliers Microsoft has relationships with a huge number of suppliers throughout the world, including those that produce our products and their components (hardware and packaging suppliers) and those that transport the goods between distributors and retail establishments (logistics providers).

Many other well-known organizations deal with the production of the same technology, just like Microsoft Corporation. Some of these firms are the biggest rivalries of Microsoft, and they include; Apple (AAPL), Google (GOOG), SAP SE (SAP), IBM (IBM), and Oracle (ORCL), which are among those on the list. Given that it is a diversified company that offers a wide range of products and services, Microsoft faces intense competition in several crucial areas of the technology sector (Sehgal et al., 2020).

According to the company’s most recent report, one striking result of the expansion is that Microsoft now employs more individuals in operations—about 85,000 workers as of June 30—than in product research and development—about 73,000 employees. Up until around two years ago, the size of the two employment categories inside the organization was comparable. Ninety-nine thousand people work for the corporation outside of the US after 21,000 new overseas hires, a 27% increase over the previous year. The corporation increased its domestic workforce by 19,000 workers, or 18%, bringing the total to 122,000 in the United States.

Just a few of Microsoft’s customers include private individuals, small and medium-sized businesses, enterprises, governmental organizations, academic institutions, Internet companies, application developers, and manufacturers of original equipment. Consumers and small and medium-sized businesses from distributors, resellers, and OEMs primarily obtain Microsoft’s products (Sehgal et al., 2020).

Microsoft has relationships with a huge number of suppliers throughout the world, including those that produce our products and their components (hardware and packaging suppliers) and those that transport the goods between distributors and retail establishments (logistics providers). All vendors that work with Microsoft are expected to uphold the standards outlined in our Microsoft Supplier Code of Conduct in human rights, labor, health and safety, protection of the environment, and ethical behavior (Sehgal et al., 2020).

SWOT Analysis

Strengths (internal) Weaknesses (Internal) Opportunities


Threats (External)
-It is the leading

software company recognized worldwide.

Microsoft is the largest organization with a dominant market share.

It has a massive market.

It has experienced constant growth for over three decades.

-It is one of the most reputed brands with millions of loyal customers.

-Has an effective advertising platform.

Overexposure to the PC market leading to price fluctuations.

Cybercrime theft.

In the Internet browser segment, there needs to be more market leadership.

Complains of unfair business practices.

The insufficiency of innovation.

Cloud business growth.

-Easy acquiring of partnerships and acquisitions.

-Cost leadership strategy.

-Provision of remote workstations.

-Innovation and artificial intelligence.

Criticism associated with the workforce.

Gay reference controversies.

High aggressive competition from other companies.

Changes in consumer preferences.

-Upcoming open source projects.

Anti-encryption drive.


One of the significant strengths of Microsoft Corporation is that it is one of the leading software companies worldwide that is easy to use. Without question, Microsoft is the market leader for software worldwide, notably in cloud computing (Sehgal et al., 2020). It is the largest and best cloud provider worldwide for Windows OS. Azure, Office 365, and Dynamics 365, offer for-pay cloud services. Microsoft Teams’ daily active users increased from 44 million to 75 million in just six weeks during the third quarter of the fiscal year 2020 and by 110% over the previous four months. The company with the highest market share is classified as the second-biggest firm in the world, depending on market share value. Microsoft’s extensive market reach is another asset. Microsoft operates in more than 190 countries worldwide (Business Strategy Hub, 2022). Additionally, Microsoft Corporation has expanded consistently for more than three decades. Microsoft’s most current financial data blatantly show the company’s meteoric rise in the cloud sector. Investor’s Business Daily estimates that Microsoft’s value might reach $2 trillion by 2022.

With millions of devoted customers, it is also one of the most well-known companies. There are 1.2 billion Office users globally, and about 60 million organizations utilize Office 365. Its customer base is the biggest and most committed. Customers continue to utilize the brand because they trust it. Last but not least, Microsoft Corporation has a powerful advertising platform. Microsoft’s effective marketing strategies have had an impact on individuals all around the world. The message of a television ad that ran in July resonated with people worldwide.


The overexposure of the PC market, which causes price swings, is one of Microsoft Corporation’s primary disadvantages. PC shipping levels often decrease due to vendor price hikes and currency fluctuations. As a result, Microsoft is currently in a vulnerable position. Additionally, the business is extremely vulnerable to thefts and cybercrime attacks. Because of the increase in cybercrime incidents, Microsoft is now more vulnerable. According to reports, hackers have frequently tried to undermine the security of the Windows Operating System. The business does not command the market for Internet browsers (Business Strategy Hub, 2022). Microsoft is losing customers as Google, Safari, and Firefox continue to gain market share in the internet browser arena. The top 10 web browsers for 2018 did not include Microsoft’s Internet Explorer and Edge.

Additionally, the business receives allegations of unethical commercial tactics. Microsoft was accused of engaging in anti-competitive activity in Europe by Slack Technologies. An appeal by Improved Search LLC, which has the authority to lodge a case against Microsoft for infringing a patent on search engine software, is now being examined by a federal appellate court in the US (Business Strategy Hub, 2022). Last but not least, the company requires further technological breakthroughs. Microsoft has needed help boosting the sales of its hardware products, including the Surface Pro smartphones and desktop computers. It has not kept up with innovation while companies like Apple, Google, and Amazon are fast blazing new technical roads.


One of the possibilities for Microsoft Corporation to investigate is the expansion of the cloud industry. In recent years, it has experienced significant growth and expansion of its cloud-based services. Microsoft now has the chance to grow its cloud computing business. In May 2020, Microsoft announced the launch of a new version of its cloud-based software tailored for healthcare organizations. In 2020, Longhurst et al. Additionally, the company can leverage the potential for straightforward mergers and acquisitions to grow. Microsoft might concentrate on forging new strategic relationships and partnerships. The business will be able to increase its market share as a result. Microsoft will find it advantageous to acquire significant high-tech companies. Coca-Cola awarded Microsoft a five-year deal in April 2020 to provide business software.

The cost leadership approach is a chance for the company to grow. Microsoft can boost sales and revenue by offering its products at competitive pricing. It might also prevent hackers from abusing its software. Additionally, the business can use the chance to offer remote workspaces. Recent events have increased the demand for goods that enable people to work virtually from anywhere in the world or at home (Longhurst et al., 2020). Microsoft Teams, the company’s remote working platform, will have 75 million subscribers by April 2020, making it the market leader. Thanks to income from Teams, Microsoft surpassed quarterly forecasts for Q2 of 2020. It can greatly benefit Teams’ long-term development. The company can also use the chance to boost its creativity and invest in artificial intelligence. Microsoft has immense potential in several cutting-edge industries, such as artificial intelligence and gaming technologies. By investing in these areas, Microsoft might get the upper hand.


Criticism pertaining to the company’s workers poses a danger to Microsoft Corporation. Data from 2018 on workplace diversity shows that Microsoft’s hired labor was not distributed fairly. The company’s human resources strategy has been scrutinized for not hiring enough women and people of color. The controversy around the LGBT reference is another risk. Microsoft’s Xbox Live gaming network has drawn much criticism. The corporation forbids references to homosexuality and gays because they consider them to be “inappropriate” and “provoking” for other players (Longhurst et al., 2020). Additionally, emerging and established businesses with outstanding inventions provide the corporation with fierce rivalry. Microsoft engages in severe competition with Google and Apple. These companies’ strong market positions can make Microsoft’s market share vulnerable. In June 2020, Google expanded its competitiveness for remote work by integrating video-call options, editing capabilities, and other tools in Gmail to lure consumers away from Microsoft.

The company must also worry about evolving customer tastes and increased open-source initiatives. Smartphone, notepad, and laptop markets are all highly well-liked. Microsoft’s share of these markets is relatively small. The market has seen the successful entry of numerous new open-source projects that provide similar services for free, similar to Linux OS and Open-Source Office (Longhurst et al., 2020). Microsoft’s premium pricing for these goods may pose a danger. The anti-encryption drive is an additional danger. The removal of consumer encryption technology, which provides child sex predators free rein online, is under criticism from governments and child welfare organizations. Microsoft and other internet firms are under pressure as well. Despite the standardization of the exposure of the offenders that Microsoft and other industry giants had pledged, many authorities and child welfare organizations still want more.


If Microsoft wants to maintain its position as the leading software producer, it must enhance its areas of weakness and make use of its potential chances. Microsoft Corporation needs to innovate while also updating its software. Microsoft must make substantial adjustments to some of its products to compete with its rivals, who are coming up with new strategies and inventions to embrace the future of creativity appropriately. Therefore, to protect the company’s competitive edge, Microsoft has to be more innovative in its software production (Microsoft, 2022). It should also continually improve the brand’s reputation by using powerful marketing strategies. By structured cabling cloud-based solutions, Microsoft’s marketing plan seeks to grow business for its corporate clients. Microsoft should use a combination of demographic and behavioral market segments to split the market into several groups with linked qualities to strengthen its brand.

The business needs to upgrade its internet browser market and take steps to get market share in this industry. Microsoft has a poor internet browser that lacks market leadership and should strive to improve its internet browser and get shares in some powerful browsers such as chrome. In order to compete with tech rivals like Google and Apple, the organization should develop more competitive advantages, improve its market position, and increase collaborations, strategic alliances, and mergers (Argyriou et al.,2020). The mergers and partnerships will increase Microsoft’s shares in different companies, enabling it to expand its brand and improve its profits. Lastly, the company can address worldwide cyber thefts and resolve cybersecurity challenges by improving its security network systems. By doing this, the organization will be able to solve the cybersecurity challenges that are facing the company.


Argyriou, A., González-Fierro, M., & Zhang, L. (2020, April). Microsoft recommenders: Best practices for production-ready recommendation systems. In Companion Proceedings of the Web Conference 2020 (pp. 50-51).

Business Strategy Hub (2022). Microsoft SWOT analysis 2022 |SWOT analysis of Microsoft Corporation.

Hakobyan, N., Khachatryan, A., Vardanyan, N., & Chortok, Y. V. (2019). We are implementing Corporate Social and Environmental Responsibility practices into the company’s competitive strategy.

Kang, H. (2013). To Be A True Industry Leader: Apple Inc. and Microsoft Corporation in Consumer Electronics Industry. Leadership & Organizational Management Journal2013(3).

Longhurst, G. J., Stone, D. M., Dulohery, K., Scully, D., Campbell, T., & Smith, C. F. (2020). Strength, weakness, opportunity, threat (SWOT) analysis of the adaptations to anatomical education in the United Kingdom and the Republic of Ireland in response to the Covid‐19 pandemic. Anatomical sciences education13(3), 301–311.

Microsoft (2022). Hardware supply chain. Microsoft is committed to sourcing responsibly.

Sehgal, G., Kee, D. M. H., Low, A. R., Chin, Y. S., Woo, E. M. Y., Lee, P. F., & Almutairi, F. (2020). Corporate social responsibility: A case study of Microsoft Corporation. Asia Pacific Journal of Management and Education (APJME)3(1), 63–71.

Warner, J. P. (2019). Microsoft: A Strategic Audit.


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