Company basically creates, produces, licenses and sells computer software, consumer electronics and personal computers and services. Famous items produced by it are the Microsoft windows the operating systemsMicrosoft Office suite MS office.
In the case of Microsoft, these external factors reflect the performance of the computer hardware and software market. In the case of Microsoft, the following political external factors are significant in strategic decision-making: For example, the company can improve its sales Microsoft pestle marketing investments in Europe to achieve a corresponding increase in revenues.
On the other hand, the increasing governmental support for automation presents opportunities for Microsoft to increase its computer technology sales via governmental clients.
This external factor is significant, considering large-scale purchases involving governmental organizations. Through this external factor, the company benefits from easier business deals in overseas markets.
However, increasing international trade agreements are also a threat against Microsoft. In these agreements, foreign firms can increase their competitiveness in developed countries like the United States.
Microsoft must include the following economic external factors in strategies for the computer hardware and software business: Considerable economic stability Microsoft pestle the majority of developed countries opportunity High growth of developing countries opportunity Growing middle class disposable income opportunity Microsoft benefits from the considerable economic stability of the majority of developed countries.
For example, the company can expect stable performance in these markets. Microsoft also has potential boosts in sales revenues in high-growth developing countries. Moreover, the economic external factor of the overall global rise of middle class disposable income creates opportunities for the company for higher revenues.
This condition is so because middle-class customers are among the most significant sources of revenues for Microsoft. Thus, the company can exploit growth opportunities in its remote or macro-environment.
In the computer technology market, the following sociocultural external factors influence Microsoft: For example, the company can increase its investment in innovating computer gaming products for this purpose.
In addition, increasing cultural diversity is a potential threat against Microsoft in terms of product-customer mismatch in the remote or macro-environment.
Nonetheless, Microsoft has an opportunity to improve its goods and services to address this issue. On the other hand, the stable demand for high quality customer service creates opportunities for the company to improve its customer support activities.
Microsoft needs to integrate the following technological external factors in its strategies: This opportunity is based on the rapid adoption of and rising demand for mobile technology.
However, this technological external factor is also a threat that facilitates competition against Microsoft.
More technology firms could exploit such opportunity to enter the market. On the other hand, the increasing volume of online transactions provides opportunities for Microsoft to develop more products that support secure online transaction processing.
Moreover, the company has an opportunity to grow through products that enable businesses to automate more of their processes. Microsoft faces the following ecological external factors in its remote or macro-environment: Increasing preference for green products opportunity Increasing focus on business sustainability opportunity Increasing availability of recyclable materials opportunity Based on the increasing preference for green products, Microsoft Corporation has the opportunity to enhance its sustainability standing.
For example, the company can develop more environmentally friendly products, and increase the use of green energy in its business operations.
Also, the increasing availability of recyclable materials is an ecological external factor that the company can use as basis for increasing the use of recycled materials in its computer hardware and software products and packaging.Economic Factors.
The tax rates, exchange rates, buying power of the customers, inflation rate of the specific region, the demand of computer technological products, population growth rate all of these factors are very significant for Microsoft to have a profitable business.
PESTLE or the External Environmental Analysis of industries and companies that operate globally is a useful methodology to analyze the external environmental factors. This article uses the PESTLE methodology to analyze the global aviation industry or the airline industry.
The key theme in this article is that global airlines are going through what can be called the “Airline Death Spiral. This article examines the external environment in which Starbucks operates by using the PESTLE methodology. This methodology consists of six external environmental drivers and within each, the key drivers or the external trends are discussed.
The key conclusions reached in this article are that despite the global economic slowdown, Starbucks has the opportunity to reach out to its existing. SWOT & PESTLE Analysis Report This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase.
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Pestle Analysis of Microsoft by Haseeb | Feb 12, | PESTLE Analysis | Microsoft Corporation commonly known as Microsoft or MS is an American global technology firm having head quarters in Redmond Washington, United States.