Microsoft Corporation Case Analysis

Essay by jmac1501University, Master'sA, April 2006

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Synopsis

Microsoft Corporation is a worldwide company that creates and supplies several different software packages, maintains a number of Internet sites, and develops computer hardware. Microsoft is the largest supplier of computer software in the world, known by software bundles including the infamous operating system Windows XP (Pro and Home editions), Microsoft Office (Word, PowerPoint, Excel, etc.) and Microsoft Visual Studio .NET (for programmers). The company has thrived on its ability to develop innovative software, and has become known for stable and reliable operating systems for use with a personal computer. Microsoft has also developed server-side software, called Windows Server 2003, to serve corporations and governmental organizations.

Problems

* Growing recognition of alternative software

* Inability to compete in the open source market

* Poor reputation in the IT community

SWOT Analysis

Strengths

* Leadership position in client distribution and branding (Deck, 2006)

* Management's experience and skills (Press Pass, 2005)

* Fast and courteous customer support (Cowley, 2003)

* Strong brand image

* Innovative (Microsoft.com,

2006)

* Broad support from software vendors

* Capability to set and control standards

* Popularity of MS Office suite applications

Weaknesses

* Compatibility with other products.

* Dependency on hardware manufacturers.

* Perception by consumers and manufacturers.

Opportunities

* Expansion into open source software.

* Develop more online applications

Threats

* Upcoming competition from top competitors.

* Lack of affective security systems in Microsoft Internet Explorer.

Industry Evaluation

Software is an integral part of today's uncertain economy, as the push for greater globalization and efficiency drives much of the spending in business markets around the world. In order to maintain a competitive edge in an increasingly competitive global market, companies are spending more and more on hardware and software infrastructures (Yahoo!Finance, 2006).

Microsoft is among 413 companies that produce and distribute application software...