Porter 5 forces analysis of microsoft corporation

Rivalry In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals.

Porter 5 forces analysis of microsoft corporation

Initially the external environment analysis would be performed through applying tools such as STEEP analysis, and this will be followed by an analysis of the needs and expectations of different stakeholders of the organization. The options for strategic planning in respect to Microsoft would be assessed, and this will be followed by construction of a strategic plan.

The factors affecting the strategic plan would be assessed and finally, implementation plan would be devised. Analysis of Microsoft Corporation An analysis of Microsoft indicates that it is an American multinational corporation that accounts for selling large number of products and services in consumer electronics segments.

It accounts for developing, manufacturing, licensing, supporting and selling computer software, electronics and personal computers and services. Microsoft is popularly known for its operating systems windows which is not only evident in personal computing but it also supports the smart phones, as most of the smart phones today in the market are supported by windows operating systems Microsoft Corporation, External Environment Impacting Organization An organization is affected by external environment conditions in which it operates and in respect to Microsoft, it is also affected by the external environment in which it operates.

This is analyzed as follows: Importance of External Factors: The external environment of an organization is highly important as it directly impacts its performance and necessitates management to devise appropriate strategies in dealing with them.

Such external factors can be in the form of political conditions such as government influences of legal conditions or it can be economic conditions in the form of declining economic performance etc.

In respect to Microsoft, its analysis indicates that it is also affected by external environment conditions, as the changes taking place necessitates in making changes to its existing strategies.

The social factor impact Microsoft is mainly in terms of demands for highly efficient windows operating systems as the social trends within consumers imply that they expects fast and highly advanced operating systems whether it their PC or mobile Microsoft Corporation, The best technology is what the modern day customers look at and Microsoft being an electronic product manufacturer, the advancement in technology has resulted into advanced operating systems and services which necessitated Microsoft to make regular introduction of enhanced version of its operating systems Corporate Citizenship Microsoft, The economic factors in terms of increasing threats of cyber attacks are posing threats to the organization like Microsoft in coming up with newer technology in addressing customer needs.

The external environment greatly influences Microsoft in the sense that in necessitate it in devising its business strategies in a manner that best addresses the environmental needs.

An analysis above has indicated that there has been higher demand for highly innovative and technological products within its customers, and this is likely to result into highly competitive position of the company in meeting out the needs and requirements of its customers.

This implies that Microsoft has the potential in achieving higher level of competitiveness within the industry in terms of meeting out the needs and requirements of its customers in a highly efficient manner.

These are the important stakeholders of an organization and the efforts of the organization are aimed at meeting out the needs and requirements of its customers. Employees are crucial as they have to carry out innovation in producing highly innovative products, but their expectations indicate that they prefer higher pay and good working conditions.

This has been a crucial stakeholder of the organization, and their role is significant in leading organization to higher level of success.

The innovative products as produced by the company are highly effective from the point of view of addressing the requirements of the customers.

Porter's Five Forces

Government has the expectation that Microsoft should account positively towards environment and also contributes in a positive manner towards economic growth and development.

Existing Business Plan and Strategy This section analyses the current business plan and strategy of Microsoft Corporation. The key business strategy of Microsoft can be classified as pursuing a global diversity and inclusion strategy aimed at supporting diverse group of employees, fostering higher employee engagement, and focusing towards innovation in achieving excellence.

The analysis of its strategy through product lifecycle and BCG matrix is performed as follows: Product lifecycle and BCG Matrix:Porter Five Forces Model (Porter Analysis) of Microsoft by adamkasi | Jul 26, | Companies | Microsoft Corporation is a multinational technology company based in the USA in Redmond, Washington.

Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level.

Porter 5 forces analysis of microsoft corporation

[1] Understanding the tool. Five forces model was created by M. Porter in to understand how five key competitive forces are affecting an industry.

Nov 16,  · Porter’s Five Forces Model, also known as the competitive forces model, is a competitive analysis model that was developed by Michael Porter.

The purpose of Porter’s Five Forces Model is to determine the profit potential of a market i.e. business tranceformingnlp.coms: 2.

Microsoft Page 1 Microsoft Corporation Strategic Analysis Report () Chinmay Chauhan 2. Microsoft Page 2 Company Summary and History Microsoft began in , with a vision by a Harvard drop-out, to see a PC on every desktop.

Today, Microsoft is a dominating the world and a leader in multiple industries.


(Five Forces Analysis. Threat of New Entrants Economies of Scale and Capital Requirements Microsoft is an American multinational corporation headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing.

Microsoft Corporation Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Microsoft.

Microsoft Corporation PESTEL / PEST & Environment Analysis[Strategy]