2. Political Factors
Microsoft is impacted by a wide range of political factors
Governmental.
Regional.
International.
Economic Factors
Economic growth or recession in the market
Changes in interest rates and currency exchange rates
Changes in taxation rates and policies
Inflation rates
PESTLE Analysis
Microsoft has attracted the attention of governments
and political parties due to antitrust-related issues.
Microsoft distributes its Internet Explorer and Windows
Media Player and sells its Office and Windows software
Microsoft, leading to layoffs of more than
5,000 employees in 2009
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3. Social Factors
Range of social factors such as
Demographic changes.
Changes in consumer attitudes and opinions.
Media perception of the brand and health.
Welfare of target customer segment.
Technology
Frequent updates for their software
New features.
Offline softwares (Works offline unlike others)
High Competition
PESTLE Cont..
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4. Legal
Intellectual property rights.
Piracy law suits.
Agreement acceptance from consumers.
Environment
Eco friendly campaigns.
Save paper through sage of office.
PESTLE Cont..
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5. Strengths Weaknesses
Brand loyalty
Brand reputation
Easy to use software
Strong distribution channels
Robust financial performance
Poor acquisitions and investments
Dependence on hardware manufacturers
Criticism over security flaws
Mature PC markets
Slow to innovate
SWOT Analysis
Opportunities Threats
Cloud based services
Mobile advertising
Mobile device industry
Growth through acquisitions
Intense competition in software products
Changing consumer needs and habits
Open source projects
Potential lawsuits
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6. External
Opportunity
1. Tech savvy generation.
2. Learning curves of individuals.
3. Growth of mobile phones.
4. Usage of social apps.
5. Internet penetration.
6. Offline capability.
Threats
1. Competitors are high.
2. Innovation in usage.
3. Changing customer needs.
4. Price wars.
5. The need to go online.
6. Storage space.
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7. Internal
Strengths
1. Ease of use.
2. Distribution Channel.
3. Brand loyalty.
4. Financial backing.
5. Intellectual property.
6. Offline service.
7. Frequent new features.
8. Global presence.
Weakness
1. Extraordinary innovations.
2. Dependence on hardware.
3. Saturated PC market.
4. Open source software.
5. Negative feed back.
6. Time taken to fix problems.
7. Space taken by software.
8. Price of the product offered.
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8. Strategy
SO Strategy
Digital marketing.
Lesser price for upgrading.
Tie up on contract for distribution.
Help college students.
Target tie up with universities.
Explain offline advantages.
Innovate in social apps.
Global mobile launch.
ST Strategy
Free upgrades to new versions.
Patents need to be renewed.
Awareness of ease of use.
Right employees.
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9. Strategy
WO strategy
Acquire mobile phone manufacturers.
Acquire pc/laptop manufacturers.
Launch mobile pcs
Respond to feed back/complaints.
Reduce price.
Offer life time upgrades.
Reduce size of the softwares
WT Strategy
Anti piracy check.
Awareness of new features.
Build in online connectivity.
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