In this area of the PESTEL/PESTLE analysis of Microsoft, the remote or macro-environment presents a number of opportunities for competitive advantage. However, this technological external factor is also a threat that facilitates competition against Microsoft. In this area of the PESTEL/PESTLE Analysis model, the impacts of ecological issues on the computer hardware and software industry environment are considered. It is also recommended that Microsoft must develop additional strategic alliances with other firms to increase its competitive strength in overseas markets. Industry Analysis. As far as the business of the mobile phone company in India, the company h… For example, the company can develop more environmentally friendly products, and increase the use of green energy in its business operations. In Microsoft’s remote or macro-environment, the following legal external factors affect strategic success: Increasing electronic waste disposal regulations are an opportunity for Microsoft Corporation to implement more effective recycling and disposal programs that improve brand image. Managing Strategy Microsoft and Nokia’s Strategic Alliance This report gives a brief analysis on the smartphone industry and what other growth options both Microsoft and Nokia could have taken other than their strategic alliance and a result of the selected strategy Tutor: Neela Sinanan Done By: K.Sivashankar 000705138 Coursework Header Sheet 209904-115 Course BUSI1324: Managing … More technology firms could exploit such opportunity to enter the market. Considering the situation of the computer hardware and software market, Microsoft can implement strategies that address such issues and their corresponding external factors shown in this PESTEL/PESTLE analysis. Through the inclusion of these issues determined through the PESTEL/PESTLE analysis, Microsoft can develop suitable strategies that create business competitiveness and resilience. Based on this area of the PESTEL/PESTLE analysis of Microsoft Corporation, the political factors present major opportunities to boost the business. They can be used in … Developing a multi-criteria decision making model for PESTEL analysis.Â. By using our site, you agree to our collection of information through the use of cookies. PEST analysis helps evaluate how your strategy fits into the broader environment and promotes strategic thinking. microsoft pestle analysis, it is extremely simple then, since currently we extend the join to purchase and make bargains to download and install microsoft pestle analysis thus simple! PESTLE Analysis of Microsoft analyses the brand on its business tactics. For example, the company can expect stable performance in these markets. An Overview of Microsoft. However, such increasing volume of online transactions threatens the company in terms of a corresponding increase of cybercrime attacks, which is one of the threats identified in Microsoft’s SWOT Analysis. Moreover, the economic external factor of the overall global rise of middle class disposable income creates opportunities for the company for higher revenues. This opportunity translates to steady growth in Microsoft’s global sales. For example, Microsoft experiences rising competitive rivalry with Asian firms. Microsoft also has potential boosts in sales revenues in high-growth developing countries. The next element to address in the PESTEL analysis of the USA is the country’s economic environment. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. Abstract: Microsoft’s mission is to provide people and businesses with the power of computing anytime, anywhere, and on any device and to given extent today it is the biggest giant in the industry. For example, the company can increase its investment in innovating computer gaming products for this purpose. This PESTEL/PESTLE analysis of Microsoft Corporation highlights a variety of opportunities that can boost the company’s growth and expansion in the global computer hardware and software market. It is often helpful to complete a PEST analysis prior to a SWOT analysis, although it may be more useful to complete a PEST analysis as part of, or after, a SWOT analysis. The effects of technologies on the remote or macro-environment of the computer technology industry are identified in this area of the PESTEL/PESTLE analysis model. However, the main threat against the company is competition based on the expansion of foreign firms, as indicated through the external factor of increasing international trade agreements. Microsoft Corporation’s Five Forces Analysis (Porter’s Model) & Recommendations, Microsoft Corporation’s Marketing Mix (4Ps) Analysis, Home Depot PESTEL/PESTLE Analysis & Recommendations, Burger King PESTEL/PESTLE Analysis & Recommendations, Toyota PESTEL/PESTLE Analysis & Recommendations, Harley-Davidson PESTEL/PESTLE Analysis & Recommendations, Sony Corporation’s PESTEL/PESTLE Analysis & Recommendations, Ford Motor Company PESTEL/PESTLE Analysis, Microsoft Corporation’s SWOT Analysis & Recommendations, Wendy’s PESTEL/PESTLE Analysis & Recommendations, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Unilever’s PESTEL/PESTLE Analysis & Recommendations, Whole Foods Market PESTEL/PESTLE Analysis & Recommendations, Google PESTEL/PESTLE Analysis & Recommendations, Tesla, Inc. PESTEL/PESTLE Analysis & Recommendations, Intel Corporation PESTEL/PESTLE Analysis & Recommendations, PepsiCo PESTEL/PESTLE Analysis & Recommendations, Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations, Nike Inc. PESTEL/PESTLE Analysis & Recommendations, Procter & Gamble PESTEL/PESTLE Analysis & Recommendations, Political stability in the majority of markets (opportunity), Increasing governmental support for automation (opportunity), Increasing international trade agreements (opportunity & threat), Considerable economic stability of the majority of developed countries (opportunity), High growth of developing countries (opportunity), Growing middle class disposable income (opportunity), Stable attitudes about leisure (opportunity), Increasing cultural diversity (opportunity & threat), Stable demand for high quality customer service (opportunity), Rapid adoption of mobile technology (opportunity & threat), Increasing volume of online transactions (opportunity & threat), Increasing automation in businesses (opportunity), Increasing preference for green products (opportunity), Increasing focus on business sustainability (opportunity), Increasing availability of recyclable materials (opportunity), Increasing electronic waste disposal regulations (opportunity & threat), Energy consumption regulations (opportunity), Dockalikova, I., & Klozikova, J. As shown in this area of the PESTEL/PESTLE analysis, Microsoft has significant growth opportunities, although the related threats could limit such opportunities in the remote or macro-environment. All key success factors that has added to the top e-commerce platforms successful journey from being an online book seller to its current diversification, all the while accomplishing its vision of being customer centric. This external factor is significant, considering large-scale purchases involving governmental organizations. All information about Microsoft’s PESTLE had reported after interview with Microsoft’s manager that analyzed by a team. On the other hand, the increasing governmental support for automation presents opportunities for Microsoft to increase its computer technology sales via governmental clients. The business significance of laws and regulations are determined in this area of the PESTEL/PESTLE Analysis model. See our Privacy Policy page to find out more about cookies or to switch them off. Most computers on the planet run on Microsoft’s Windows Operating system. For example, the company can improve its sales and marketing investments in Europe to achieve a corresponding increase in revenues. PESTEL analysis of the macro-environment.Â, Murphey, M., & Gause, R. (1974). Enter the email address you signed up with and we'll email you a reset link. The Open Library: There are over one million free books here, all available in PDF, ePub, Daisy, DjVu and ASCII text. UCF Research Guides. However, increasing international trade agreements are also a threat against Microsoft. It is dominating the software market since then, offering software and hardware products, operating systems, apps and devices, Cloud computing, and office software suites.. Satya Nadella is currently in charge of Microsoft Corporation. In addition, increasing cultural diversity is a potential threat against Microsoft in terms of product-customer mismatch in the remote or macro-environment. Microsoft PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. PEST analysis is a powerful and widely used tool for understanding strategic risk. Microsoft’s Strengths (Internal Strategic Factors) This area of the SWOT Analysis model identifies business strengths or internal strategic factors that contribute to business growth and resilience. Strategic Analysis of Microsoft Home » Pestel Analysis of Microsoft. (2007). 5297 words (21 pages) Essay. Micosoft PEST, SWOT 1. InÂ, Yüksel, I. The USA is the largest economy in the world in terms of nominal GDP. Microsoft PESTEL analysis examines effects of these factors on the bottom line of the multinational technology company. In the case of Microsoft, these external factors reflect the performance of the computer hardware and software market. PESTEL analysis of the macro-environment There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Microsoft Corporation if it is situated in unstable political environment. Increasing governmental support for automation (opportunity) 3. This paper served as a competitive strategy analysis of Microsoft as a telecommunications giant offering software, computer products and Internet. Microsoft needs to integrate the following technological external factors in its strategies: Microsoft Corporation can improve its performance through rapid innovation of its mobile devices. See more ideas about pestel analysis, analysis, how to plan. The PESTLE Analysis is a popular strategy tool used by management of both commercial and non-profit organizations. Oct 8, 2019 - Explore Abdinoor Jarso's board "Pestel analysis" on Pinterest. The remote or macro-environment is advantageous to the business, considering the opportunities available to Microsoft in markets worldwide. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Apart from being the maker of Windows OS, it is a well known and leading cloud player. (2012). Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. To help analyse these factors managers can 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, Ansoff Matrix and McKinsey 7S Model on Microsoft. 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