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Microsoft Corporation SWOT & PESTLE Analysis

ID : 5296253 | Jan 2018

COMPANY PROFILE - Microsoft Corporation

Business Sector : Information Technology

Operating Geography : United States, Global

About Microsoft Corporation : Microsoft Corporation, also known as MS, is an American multinational technology company. The headquarters is situated in Redmond, Washington. Microsoft’s portfolio of products and services is varied and huge which comprises of operating systems for computing devices, servers, phones, and other intelligent devices. It also makes server applications for distributed computing environments, productivity applications, business solution applications; desktop and server management tools.

Microsoft Corporation Revenue : US $89.95 billion – FY ending June 30, 2017

Competitive Analysis of Microsoft Corporation

The SWOT analysis for Microsoft is presented below:
1. Healthy financials
2. Constant innovation and new products
3. Effective point-of-sale network
4. Strong presence in European market
1. Foreign exchange and market risk
2. Impact on business due to competitors actions
3. Limited finance
1. Rise in health and fitness trend
2. Growth opportunities in Asia
1. Highly dependent on sports
2. Intense competition

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Detailed SWOT Analysis of Microsoft Corporation


1. Market Share: Microsoft’s Windows desktop operating system is a household name and holds majority of market share. The vast and varied portfolio is what essentially makes this company have such a huge customer base.

2. Diverse Products and World Wide Reach: The wide range of products include cloud-based computing services that include Bing, Microsoft Azure, Microsoft Dynamics CRM Online, Microsoft Office 365, OneDrive, Skype, Xbox Live, and Yammer. Their computers and software are very popular not only in the west but around the globe. With this, they have a great and also loyal customer base and hence a platform for advertising.

3. Plenty of Capital: The solid financial position is an enabler for Microsoft to venture into aggressive marketing techniques. It is the 5th largest corporation in the world. Testimony to this is the capital it has and thus this company can afford to devote time and money to venture into new arenas.


1. Competitors: There exist many options or rather alternatives for customers today in the market. Microsoft has lagged behind Apple, Samsung and Google in many fronts.

2. Lack of Innovation: The kind of innovation that Apple and other giants have brought into the space of technology is immense. Microsoft entered late into mobile industry.

3. Weak position of Internet explorer: The search engine concept has broadened and Microsoft lags behind in this respect as well


1. Credibility: Microsoft has been known for the excellent customer support option and its exemplar Customer relationship management programs. This in itself is an advertising that attracts new customers and also retains the old base.

2. Customer Base: Microsoft needs to fully harness its customer base which is quite huge and loyal.

3. Smartphone Segment: Companies like Apple saw opportunity in this, and managed to capitalise on it. If Microsoft doesn’t manage to stay current, its products will quickly grow out of date, and as a company they will be pushed aside.


1. Losing out on Markets: Due to the emergence of new and innovative competitors Microsoft could lose out on new markets and existing as well.

2. Pricing: Microsoft products are typically big, expensive purchases that consumers only consider every few years. Microsoft doesn’t really offer any particularly cheap products, and so lose out on market share.

The unpublished sections of the entire SWOT analysis is available in the 'Complete Report' on purchase.

Microsoft SWOT analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.
The PESTLE / PESTEL analysis for Microsoft is presented below:
1. Corporate participation in public policy process and political contributions1. Benefits of the H-1B work visa program overhaul by Trump administration
2. Protectionist policies of Trump administration
1. Shortage of skilled talent in STEM fields impacting local recruitment 1. Huge cash reserves allowing Microsoft to undertake major R&D investments
2. Artificial Intelligence capabilities to drive growth
1. Losses from software piracy
2. Antitrust lawsuits and violations
1. Energy efficiency in data centres and overall operations
2. Responsible water stewardship and waste management
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Detailed PESTLE Analysis of Microsoft Corporation

The unpublished sections of the entire Microsoft PESTLE / PESTEL analysis is available in the 'Complete Report' on purchase.

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Microsoft SWOT and PESTLE analysis is reviewed by senior analysts from Barakaat Consulting.

Copyright of Microsoft SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.