New Touch

SWOT Analysis: Microsoft Corporation

By Arthur W. Hafner , Ph.D., M.B.A. and
Erica L. Hibbert
May 31, 2001

Strengths
*Applications and operations divisions along with recently created online service network divisions (MSN)
*Revenues and profits rising at 30% a year with merger/acquisition or investment in 92 companies over past five years

Weaknesses
*Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet
*Bill Gates has become Microsoft's chief software architect but has not yet developed a substantially new line of products

Opportunities
* global telecommunication costs open new markets as people connect to the Internet
* trial Judge Thomas P. Jackson's breach of judicial discretion and conduct in the Microsoft antitrust case clouded the proceedings in Microsoft's favor

Threats
* and Linux threaten Microsoft's 88% market share of the desktop operating market
* influence growing from 7% in 1998 to 17% in 1999
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