We all are aware of the fact that Microsoft Corporation is the leading software production company all over the world. The company also has become a leader in the world for the provision of services and internet technologies for personal computers and servers. The company has faced a lot of ups and downs over the years and it has successfully won over the problems and retained its position as the leading company in the development of different software technologies and products. We are going to discuss the problems encountered by the company and the decisions made by the management of the firm.
Microsoft has become successful in many cases. This has been possible only for the revolution of the company in marketing and production over the years. Besides the operating systems, the company has a strong grasp of the office suite market. A lot of companies, be it large or small use this software as they get tools that make the process of texting, creating spreadsheets, presentations, and documents easier. The main victory of Microsoft is no doubt Windows NT which is a family of operating systems having been used by Microsoft since the early 90s. Moreover, we can not forget the contributions of Windows XP, Windows 95, Windows 7, mobile operating, and search systems that have made the influence of the company strong in the multinational market.
But there are also a lot of things done by Microsoft that have affected the reputation of the company. For instance, Windows ME is an operating system that was launched in a hurry and that is why it lasted only a little more than a year. The operating system continuously encountered incompatibilities, slow work, bugs, and unstable work. People have criticized Microsoft Vista heavily because of multiple errors and issues. That is why the management of the firm arranged a special Windows Mojave advertising campaign. Marketing did not become successful to enforce its plans particularly when the users found that the operating system was plugged with DRM constraints and ate up exorbitant RAM and processor resources.
The company chose to set its foot on the rapidly developing mobile industry in 2011 and secured the dominant place of Google..all the credit goes to Bing Search System. The internet has a great role in the activity of human beings as with the help of the internet people may get to know a huge amount of information quickly. This implies that the users should have the best quality search engines along with Bing which has a lot of attractive features and updates that are capable enough to easily compete with Google and Google Chrome. That is why Microsoft search states will remain highly demanding for a long time by giving continuous innovations and modifications. But we can not say the same thing about the mobile products of Microsoft. The company ceased the production of mobile devices four years ago for a few reasons. For instance, in the previous years of the life of the Windows phone, Microsoft due to some factors started to target the business sector when it should concentrate on the mass consumer. Moreover, Windows phone has a minimal app store. Developers did not want to optimize their apps for the new platform as Windows phones utilized a distinct API which consumed a huge amount of time as well as money. That is why the mobile devices field could be very profitable and a good way for Microsoft but when Windows phones were launched it was too late. In case Microsoft would have launched a new operating system before in place if using Windows mobile until the end moment the story could be completely different.
Microsoft should listen to the words of the users very carefully and should not try to build a monopoly on a specific product sector anymore so that the actions of the firm do not create any problems and controversies. Moreover, the company needs a clear and honest marketing strategy that will help the company to impress the consumers with the high quality of Microsoft products. It will also play the role of a very important component of the reputation of the company. Microsoft has indeed been prevailing in the market over the years and the company had a fixed and trustworthy stature. However, the condition of the market may change at any time, and opponents may enter the market. The company has to understand all these and have to adjust itself to it.
PESTLE Analysis Of Microsoft
Over the past couple of years, Microsoft has encountered a lot of political challenges. Particularly the company has faced some brutal trust issues. The company needs to solve it just like the other issues. Various nations, particularly China, encounter the crisis of techniques of distribution and sale of Microsoft software. The United States has a good and friendly relationship with China. They are beneficial for both countries. The United States depends greatly on China which implies that any issues and interference may create turmoil for Microsoft also. But the problems are related to China and the European Union which fined the firm in 2013. The company had to give $730 million as a penalty for breaking trust rules. Currently, the European Union has modified its privacy rules for running legal proceedings against large American firms.
The profitability and revenue of an active business directly depend on the political atmosphere. That is why Microsoft has to research the laws of other nations very carefully. The management of the company has spent over ten million dollars over the past couple of years to arrange a suitable political atmosphere. That is why Microsoft is in a beneficial state. The company functions in various nations. That is why the attitude of the countries towards the activities of the company influences the success of the company directly.
The company is still trying to recover from the modifications that happened more than a decade before. While the economic problems started in 2007 Microsoft was compelled to lay off over 5,000 workers. Any economic changes may force the companies to face unexpected consequences no matter whether the company is big like Microsoft. The present situation of the economy also affects the situation of Microsoft. There are ups and downs in profits because of the modifications in tax rates and labor legislation. Moreover, cranky relations between international firms may develop inflammation and impede the import and export of products.
In 2015 the profit and expenses from the international operations of Microsoft were reduced due to the strengthening of the dollar. In case a nation is facing problems their buying addictions will move only to necessary goods. But in case the economy of a nation is growing, they will purchase more products even if they are not essential. Microsoft has to handle this matter tactfully to make sure that these kinds of changes will not affect the entire company.
Besides the economic factors, social factors have a great effect on the income and profit of the company. The scarcity of cultural modifications can have a bad impact on the business. The management of large firms strives a lot to know the latest fads and to investigate the customs and artistic rituals of those nations where their business is operating. It is a matter of sorrow that Microsoft did not focus on shifting its positions to support cultures.
The mobile devices increased significantly which must be fast, optimized for screen size, and easily usable. Microsoft has not smoothly acclimated to smartphones as the primary part of its marketing policies; otherwise, other firms will take the step.
Microsoft is a technology firm that creates and allocates digital software. The company gets influenced by any modifications in the technology sector. The old technology is disposed of as soon as the new technology is created. Apple and Google are the two most important opponents of Microsoft. They constantly create a threat for Microsoft as they can easily and quickly adjust to the constant modifications. In case Microsoft does not take any steps the company has to face an incredible loss of profits. It is a great matter that the company spends a lot of money on innovation and research of new technologies. For instance, the firm has gained an improvement in profit after introducing cloud services. However, the company is not completely aware of mobile technologies which are slowly becoming a prerogative.
Analysis Of Microsoft
The strengths of the company are as follows:
- Microsoft is the leading company in the software technology market all over the world particularly, in the cloud computing sector. Microsoft is the largest operating system developer and the best cloud player in the entire globe. In the third fiscal quarter of 2020, the number of daily users of the Microsoft team remote work solution grew by 70% from 44 million to 75 million within only six weeks and grew by 110% in the four months earlier.
- Microsoft holds the second position in the universe as per market value. Microsoft is the largest company of all over the globe with a considerable market share. The company also secures the largest market share with 3% development among the five largest cloud service providers.
- The company has a detailed market range. The company runs its operations in more than 190 nations all over the globe.
- The company keeps on growing constantly and steadily in the cloud business dependent on profit results.
- The management of the firm resorts to useful and outstanding marketing policies that affect people all over the universe.
The weaknesses of the company are as follows:
- The company concentrates completely on the PC market which often fluctuates because of the growing supplier prices and the ups and downs of currency. Due to this factor, the firm is in a powerless and periodically difficult state.
- Now, cybercrime is rapidly growing which negatively influences the activities of the firm. Hackers introduce attacks on the cybersecurity of Windows operating systems.
- Microsoft has not been able to grow the sales of its hardware products like computers and Surface Pro phones. The company moves slowly in creating and developing technology whereas Apple and Google are adapting all these very quickly.
One of the organizational issues of the company is the mobile direction of activity which is hard for the company. This issue is clear against the background that firms are starting to authorize their workers to utilize Android and iOS devices in place of the conventional Windows and Blackberry devices for the corporate sector. Customers get attracted easily to new devices like smartphones and tablets. But unfortunately, Microsoft has not been able yet to reach a satisfactory position in it.
The best marketing solutions to solve this problem are as follows:
- The company should create a recognizable Microsoft flagship mobile like Nexus or iPhone.
- The company should expand the Windows phone app store.
- The company should make a transition to the Android system.
Indeed, other companies have already dominated the mobile technology field. Microsoft is unlikely to gain a substantial mobile device sales sector even if it provides the best quality of products. So, it will be the best policy to make a transition to the Android mobile system. The Customers will not even get impressed by a Windows phone with a 50-megapixel camera. They will not change their views as the company is not demanding in the world of mobile technology. If you require more help you may approach My Assignment Writing Help.
FREQUENTLY ASKED QUESTIONS
- What Type of Issues is Microsoft Facing at This Time?
Microsoft is confronting various challenges at this time like interest rates rising, inflation rates remaining high, and economic growth dampening globally. During the first half of 2022, the company confronted impediments as Russia raided Ukraine, and workers sought more clarity on earnings as the labor market remained favorable for workers.
- How Prosperous is Microsoft 2023?
In the first quarter of the fiscal year 2023, the company’s earnings were $52.12 billion. Microsoft exceeded the predictions of analysts of $49.61 billion by 11% in Q1 2023.
- What is Microsoft Mostly Known for?
Microsoft Corporation is the leading developer of personal computer software systems and applications. The firm also publicizes books and multimedia titles, creates its line of hybrid tablet computers, provides e-mail services, and sells electronic game systems and computer peripherals (input/output devices).