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company. It means it did R&D well to understand the demands of customers inevery nation, their buying habit, political and economic background.2.SWOT Analysis:a.Opportunities and Threats: From the PEST analysis, Microsoft has chances todevelop the company in US, which is leading in IT market all over the world.People is now getting used to wireless services and willing to pay for this service.However, people do not use PC much as before, the PC selling amount isdecreasing due to the wireless services, and it effects to their PC operatingsoftware sales. Besides, they still have to face with antitrust litigations aboutpatent and intellectual property. On the other hand, IT innovation market is a fastpace market which requires changes every day. Microsoft, although they riseslowly in recent years, they still face to the slow erosion of PC-centric Windowsand Office franchises and needs to compete to the biggest competitor in Apple andGoogle – in mobile computing (FRPT Research, 2014).b.Strengths and Weaknesses: Microsoft is sensitive and has fast moves with thetrends. After realizing the mobile phone is not their advantages, they focused ontheir strength of developing operating systems, integrated with the big corporationto navigate the technology changes (Ovide, S., 2018) by refashioning theirproducts and the methods to marketing them and sell them. They also createAzure cloud-computing service – which allows corporation stores their data on
BMW CASE STUDY ANALYSIS`14cloud, allows people using Microsoft Office product (Microsoft Words, Excel,PowerPoints, etc.) online costless, easily using everywhere and autosavedconveniently. This helps make competitive advantages for Microsoft, to the othercompetitors such as Google, Amazon. However, Microsoft can enhance theirstrength in the operating system but still cannot improve their weakness in themobile technology: they have more than 90% of PCs and tablets run Windows butvery few (around 4%) of smartphones do (FRPT Research, 2014).3.From the analysis above, Microsoft’s biggest issue is unable to bring new products thatcan truly effective and help the brand name of Microsoft being attractive to users; thiscomes from Microsoft’s organization, which changed many times but still not succeed inkeeping its dominance in the innovative technology industry: in 2002, they restructuredthe company into three divisions: products/ services, business and entertainment/ devices.Then they divided products/ services into Windows and online services – in which theteam to develop Windows products is limitation to the growth potential of new solutionsfrom the other teams, which are seem to be supportive teams. There is no connectionbetween teams. Therefore, each team leader only took responsibilities for his own teamgrowth, not the whole organization’s growth. After that, in 2013, the CEO changed thecompany structure as a horizontal management structure, with nine functions instead ofone division: products/services with different product developing teams. This change iscalled “One Microsoft” (Dhillon, I. & Gupta, S., 2015). This change is to share the same