Opportunities

1. In 2012, China surpassed the USA as the world’s largest smartphone market, yet there are millions of untapped customers
remaining in China.
2. Nevertheless, cloud service are expected to yield revenues of $100 billion in 2016, up from $40 billion in 2011.
3. Cloud computing, supplying computing services via the internet without having to use hardware or platform support.
4. Microsoft is developing technologies that increasingly enable touch screen and voice to be more readily understood by PCs,
tablets and phone.
5. Smartphone shipments have risen dramatically since 2005 from 50 million phones shipped worldwide to more than 650 million
phones shipped in 2012.

Threat

1. Aside from traditional phone providers, companies such as Apple, Google, Dell, and others are all continually offering new
products and features to differentiate their handsets.
2. Also, as the tablet’s video gaming experience increase and closer to the experience on an Xbox, PlayStation, or Nintendo’s
market share for traditional gaming consoles may decline.
3. Technology is changing so rapidly every day and new rival firms arising globally in the industry.
4. Cloud computing offers less security, and increased dependability on a third-party vender such as Google to continually
provide the service at an appropriate network speed.
5. Millions of consumers globally are skipping over PCs altogether and going straight to mobile devices.
 Strength

1. Microsoft develops a variety of software and hardware products and services for customers around the world, including its
Windows Office, Windows 8 operating system for personal computers (PCs) and others.
2. The Windows Division receives approximately 75 percent of its revenue from the Windows operating system, with the bulk of
this revenue coming from equipment manufacturers such as Dell, Sony, Toshiba, and others pre-installing Windows on their
machines for customers.
3. Revenues increased by 12 percent in the division mainly attributed to growth in the SQL and Windows server.
4. In the fiscal year, Microsoft’s advertising and online advertising revenues grew 13 percent to $2.6 billion.
5. Microsoft’s Server and Tools Division is Microsoft’s third most profitable division,
producing name brand products such as Windows Server, Microsoft SQL, Windows Azure, Visual Studio, Enterprise
Services, and others.

Weakness
1. Microsoft has a history of using poor judgments in acquisitions, as indicated by the company’s goodwill being more than $13
billion.
2. Sales of Microsoft’s Surface tablet are not good; analysts expect the company to sell between 500,000 and 600,000 Surface
tablets in their second quarter of fiscal 2013, much lower than the company’s original estimate of 1 to 2 million.
3. With Skype purchase price of $8.5 billion, MS is essence paying around $1000 for each customer who is worth around $30
each.
4. Microsoft operations has the lowest Earning per Share than the other rivals which is Google, Apple and Oracle.
5. Microsoft net income decrease by 26.67% in year 2012, based on its financial statement.
SWOT Analysis
Strengths
1. Microsoft develops a variety of
software and hardware products and
services for customers around the
world, including its Windows
Office, Windows 8 operating
system for personal computers
(PCs) and others.
2. The Windows Division receives
approximately 75 percent of its
revenue from the Windows
operating system, with the bulk of
this revenue coming from
equipment manufacturers such as
Dell, Sony, Toshiba, and others pre-
installing Windows on their
machines for customers.
3. Revenues increased by 12 percent
in the division mainly attributed to
growth in the SQL and Windows
server.
4. In the fiscal year, Microsoft’s
advertising and online advertising
revenues grew 13 percent to $2.6
billion.
5. Microsoft’s Server and Tools
Division is Microsoft’s third most
profitable division producing
name brand products such as
Windows Server, Microsoft SQL,
Windows Azure, Visual Studio,
Weakness
1. Microsoft has a history of using
poor judgments in acquisitions, as
indicated by the company’s
goodwill being more than $13
billion.
2. Sales of Microsoft’s Surface tablet
are not good; analysts expect the
company to sell between 500,000
and 600,000 Surface tablets in
their second quarter of fiscal 2013,
much lower than the company’s
original estimate of 1 to 2 million.
3. With Skype purchase price of $8.5
billion, MS is essence paying
around $1000 for each customer
who is worth around $30 each.
4. Microsoft operations has the
lowest Earning per Share than the
other rivals which is Google,
Apple and Oracle.
5. Microsoft net income decrease by
26.67% in year 2012, based on its
financial statement.
 Enterprise Services, and others.

Opportunities SO Strategies WO Strategies

1. In 2012, China surpassed the USA 1. Invest 10% of the revenue to open new 1. Develop new marketing strategies
branch at China to create new brand ( W1, W2, W3, O1 )
as the world’s largest smartphone
market ( S3, S4, S5, O1 )
market, yet there are millions of 2. Offer stock in the market and update
2. Invest also 10% of the revenue for the business policies ( W4, W5, O2,
untapped customers remaining in R&D in developing the cloud O4, O5 )
China. computing system and the other
technology ( S1, O2, O3, O4 )
2. Nevertheless, cloud service are
expected to yield revenues of $100
billion in 2016, up from $40 billion
in 2011.
3. Cloud computing, supplying
computing services via the internet
without having to use hardware or
platform support.
4. Microsoft is developing
technologies that increasingly
enable touch screen and voice to be
more readily understood by PCs,
tablets and phone.
5. Smartphone shipments have risen
dramatically since 2005 from 50
 million phones shipped worldwide
to more than 650 million phones
shipped in 2012.
Threats ST Strategies WT Strategies

1. Aside from traditional phone 1. Develop new products that satisfy the 1. Do market analysis and product
needs and the wants of the customers quality assurance (W2, T1, T3, T4,
providers, companies such as Apple,
( S1, T1, T3, T5 ) T5 )
Google, Dell, and others are all 2. Close any segments that not
2. Cooperate or do joint venture with the contribute much to the income and
continually offering new products others competitors which has a high the revenue (W4, W5, T1, T2, T3, T5
and features to differentiate their potential to create the best products in )
the market ( S2, T2, T4 )
handsets.
2. Also, as the tablet’s video gaming
experience increase and closer to
the experience on an Xbox,
PlayStation, or Nintendo’s market
share for traditional gaming
consoles may decline.
3. Technology is changing so rapidly
every day and new rival firms
arising globally in the industry.
4. Cloud computing offers less
security, and increased
dependability on a third-party
 vender such as Google to
continually provide the service at an
appropriate network speed.
5. Millions of consumers globally are
skipping over PCs altogether and
going straight to mobile devices.