With regards toward the Japanese manufacturer, Sony Corporation (ADR) (NYSE:SNE) is currently trading around $21. The company competes with Microsoft mainly in the gaming segment while Sony’s smartphones are also trying to gain a major market share in the industry, which could worsen Microsoft’s position in the smartphones market.
Microsoft’s future might not look the brightest to several investors; however, the company can still hold on to its strong position in the PC market, and might finally get something going on with its partnership with Nokia. Here is a SWOT analysis for Microsoft, which would give investors a better picture of where the company stands at the moment.
Strengths
Microsoft’s current strong position in the PC market is its key strength. The company has made a fortune in this particular segment and it is still the major player here. Even though the PC market has been on a decline, Microsoft should be able to make a lot of money in the segment for a few more years to come.
Brand loyalty is also an important strength as there are a lot of Microsoft fans out there, who wouldn’t even try any other PC OS.
Intel has partnered with Microsoft for a long time – a partnership which has been successful for years. Intel and Microsoft will continue their partnership in the future, and, with some innovation, this has a great potential.
Microsoft’s Windows 8 hybrids have made a lot of headlines this year, and the laptop plus tablet features of the device has already attracted a lot of consumers. While these particular devices did not sell well after release, they are likely to pick up the pace very soon, especially after the Windows 8.1 update.
Weaknesses
Microsoft’s late entry into smartphone and tablets is probably the company’s biggest weakness. Apple and Google’s OS have already enjoyed their successes in the industry, while Microsoft’s Windows OS is still struggling to get a major chunk in the market.
In the tablets industry, Microsoft’s Windows 8 has not performed as expected and its surface tablet sales were disappointing.
Slow innovation has been another issue for Microsoft for quite some time now. They haven’t been able to keep up with the latest trends in the industry, which is why the company has been left behind in different divisions.
Sony has a similar case and, after being a leader in technology, Sony was left behind in various divisions of its business. However, under the new restructuring plan, Sony has been looking better, and looks set to improve its performance across all its divisions.
Apple has been using its own software with its hardware for a long time, which could be a reason why it has been successful. While Microsoft is known as a software company, it relies heavily on the PC manufacturers. The company did try to enter into manufacturing with the surface tablet, but that didn’t turn out well.
