Financial SWOT Analysis of Microsoft Corporation
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Financial SWOT Analysis
Microsoft Corporation has a strong financial performance that gives it the ability to outdo other software and computer manufacturers (Hussey, & Jenster, 2001). With its strong brand name and high reputation for high-quality products worldwide, the company can expand its sales and improve its profit margins. Its products have proper distribution links globally whenever required and easy to use consequently attracting a large number of customers and expanding its financial benefits. The prospects in high- tech initiative gives it an advantage in foreign markets as the level of competition is lower since there is no competitor offering similar products (Kim, & Kim, 2001). Its software security is a major weakness as it regularly faces security flaws as well as slows innovation pace. The company dependence on the hardware of other firms to run their software makes it weak and reduces its financial opportunities to dominate technology markets.
The corporation faces a threat of possibly standing to lose customers to its competitors who are offering their products at cheap prices. This will force the company to be sensitive to its different markets and neutralize prices of its competitors by offering slightly lower or matching prices (Kim, & Kim, 2001). The company can lose funds in possible lawsuits due to various security flaws on its products and possible market overtake by numerous software manufacturers (Johnson & Peppas, 2003). The company stands securely from its earned customer loyalty that can make it a real return on investment regardless of the number of rival companies entering the market. Other than producing new products, the corporation has remained sensitive to the customer demands and kept on improving older versions of its products to come up with better models for its clients. Microsoft continues to command a leading share of market position in the software industry against competitors enlarging its financial base and position in the world markets (Kim, & Kim, 2001).