SWOT, BCG, and IE matrices.edited
docx
keyboard_arrow_up
School
Nairobi Institute of Technology - Westlands *
*We aren’t endorsed by this school
Course
MISC
Subject
Information Systems
Date
Nov 24, 2024
Type
docx
Pages
6
Uploaded by DeBrow
1
Name
Institution
Course
Date
2
Introduction
Microsoft is one of the world's largest technology companies; as such, they need to have
a strategic plan in place to remain competitive. This paper will analyze the significance of the
three matrices (SWOT, BCG, and IE) concerning Microsoft and their relevance for strategic
planning. We will also discuss how the information from the analysis will influence our
recommendations for strategic plans to improve the company's position (Microsoft, 2022).
SWOT Matrix
The SWOT matrix identifies a company's strengths, weaknesses, opportunities, and
threats. Microsoft's strengths are its commitment to innovation, ample cash reserves, and
strategic alliances with PC hardware and smartphone technology companies (QuickMBA, n.d.).
The weaknesses identified include the public perception of Bill Gates as the face of the company
and the lack of hardware products in the mobile computing/tablet/virtual reality gaming space
(Microsoft, 2022). The opportunities identified include the potential to make their browser more
secure against malware and viruses and to create new products in the mobile
computing/tablet/virtual reality gaming space. The threats identified include the mature PC
market and the public/governmental scrutiny of other tech companies like Meta and Alphabet.
BCG Matrix
The BCG matrix is used to analyze a company's product portfolio in terms of relative
market share and sales growth rate. Microsoft's product portfolio is divided into three divisions:
Intelligent Cloud, More Personal Computing, and Productivity and Business Processes.
According to the report, the Intelligent Cloud segment is a shining star, with a significant relative
market share and rapid sales development. The More Personal Computing segment is a cash cow
with such a high market share but a slow revenue growth rate. The Business and Productivity
3
Process segment is a question mark with a relatively small market share and a fast sales growth
rate.
IE Matrix
The IE matrix determines the attractiveness and competitiveness of a company's product
portfolio. Microsoft's product portfolio is divided into four divisions: Intelligent Cloud, More
Personal Computing, Productivity, and Business Process, and an undetermined division with no
revenues. The analysis shows that the Intelligent Cloud division is in a strong position, with high
estimated IFE and EFE scores.
Analysis and Recommendations
The SWOT matrix shows that Microsoft has many strengths, such as its commitment to
innovation and ample cash reserves. However, they also have weaknesses, such as the public
perception of Bill Gates as the face of the company. To improve its position, Microsoft should
continue to invest in innovation and focus on its core service lines while also addressing the
public perception of Bill Gates by highlighting its new leadership.
According to the BCG matrix, Microsoft's Intelligent Cloud division is a star and needs
funding to keep its status. The More Personal Computing segment should be treated as a cash
cow to keep its existing market share. To assess whether additional research is needed to decide
if the investment is required to strengthen the position of the business productivity and Process
division, which is a question mark (Marketing91, 2020).
The IE matrix shows that Microsoft's Intelligent Cloud division is in a strong position and
should be invested in it to maintain its attractiveness and competitiveness. The More Personal
Computing division is weak and needs to be managed carefully to avoid losing market share. The
Productivity and Business Process division is in a medium position and should be analyzed
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
4
further to determine whether an investment is needed to improve its attractiveness and
competitiveness.
Possible strategies for Microsoft based on the analysis of the three matrices include
investing in innovation, focusing on its core service lines, leveraging its strong brand reputation
and strategic alliances, and expanding into new markets and product lines.
Investing in innovation: The SWOT Matrix reveals that Microsoft is committed to
innovating and has the capital and new leadership to steer the company into new ventures.
Microsoft may use this by spending money on R&D to produce new goods and services that
meet the market's demands. Startups specializing in cutting-edge innovations such as artificial
intelligence, augmented worlds, and the Internet of Things can also be acquired by them or
partnered with them.
Focusing on core service lines: The SWOT Matrix also suggests that Microsoft can avoid
the public and governmental scrutiny of other tech companies by focusing on their core service
lines. To do this, Microsoft can improve and innovate their existing products, such as Windows
OS, Microsoft Teams, and Edge browser, and create new products in the same category, such as
new versions of Surface tablets and laptops.
Leveraging brand reputation and strategic alliances: The SO Strategies in the SWOT
Matrix reveal that Microsoft can leverage its strong brand reputation and strategic alliances to
capitalize on new ventures. To achieve this, Microsoft can create strategic alliances with other
tech companies, expand partnerships with existing PC hardware companies, and use its strong
brand reputation to create new products such as smartphones or gaming consoles.
Expanding into new markets and product lines: The BCG Matrix indicates that Microsoft
has strong revenue in all three divisions: Productivity and Business Process, Intelligent Cloud,
5
and More Personal Computing (BCG, 2022). This suggests that Microsoft can expand into new
markets and product lines. For example, Microsoft can explore new markets, such as healthcare
or education, and create new product lines, such as wearable devices or home automation
systems.
6
References
Microsoft. (2022). About Microsoft. Retrieved February 22, 2023
Microsoft. (2022). Investor Relations. Retrieved February 22, 2023
QuickMBA. (n.d.). SWOT Analysis. Retrieved February 22, 2023
BCG. (2022). The BCG Growth-Share Matrix. Retrieved February 22, 2023
Marketing91. (2020). IE Matrix – Internal External Matrix. Retrieved February 22, 2023
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help