Microsoft 365 by GB
One of the most basic techniques for analyzing firm and industry conditions is SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. This kind of analysis provides a basic listing of conditions both inside and surrounding a company. This week, we will explore the “W” in SWOT to dive into some of the weaknesses of Microsoft.
Weaknesses
Despite all its strengths, Microsoft is not without its weaknesses. Below, there are some of the issues the company will need to address to remain a key player in the market for decades.
Overexposure to the PC Market
One of the most significant disadvantages faced by Microsoft is its overexposure to the PC market. Microsoft’s revenue is threatened due to the PC market slump and the strong dollar. 2020 saw an increase in inflation, which has increased concern about a global economic meltdown. With such worries, businesses and individual consumers are cutting down on their purchase of computers and laptops, reducing the sales of major products offered by Microsoft, such as office suites and windows. As the dollar increases by seventeen percent, companies with global operations are at more risk. At this juncture, it is essential to note that Microsoft relies primarily on its revenue outside the United States. Additionally, PC shipments and distribution often get delayed, making customers less dependent on them.
Cybercrime Vulnerability
Microsoft is susceptible to several cyber crimes, as it has been attacked several times. Microsoft reported some Russian-backed hackers called Nobelium, who were responsible for the 2020 SolarWinds breach. This group continuously charges at the global technology supply chain using a novel technique to piggyback on direct access used by cloud service resellers for their customers’ IT systems. They aim to gain access to downstream customers by impersonating the organization’s trusted technology partner. Without external third-party antivirus software, Microsoft’s security is easy to breach.
Unfair Business Practices
Microsoft has once been accused of antitrust violations because it created a market monopoly involving a free browser. Additionally, some employees of Microsoft have blamed senior colleagues for discrimination in various aspects and sexual harassment. In response to these complaints, the CEO, Satya Nadella, acknowledges and takes active steps toward rectifying them.
Unsuccessful acquisitions
Microsoft has spent quite a lot in acquiring several companies, including Nokia. Despite its acquisitions, Microsoft has suffered some misses in the acquisition game. Some of Microsoft’s unsuccessful acquisitions are Nokia, Danger, Tellme Networks, aQuantive, and Navision. Nokia, for instance, was bought at $7 billion when it almost ran out of the market. Nevertheless, Microsoft’s acquisition of Nokia couldn’t handle or prevent its eventual fall out of the market.
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