Microsoft Lumia - Pest Analysis by Mitchell Formica

Macro force analysis (Pest Analysis)

Political

Microsoft is impacted by many political factors including government, regional and international levels. Some of the activities that Microsoft take part in can actually be thought of as a political issue. “Most notably, Microsoft has attracted the attention of governments and political parties due to antitrust-related issues. A recent probe by China’s State Administration for Industry and Commerce into the ways Microsoft distributes its Internet Explorer browser and Windows Media Player and sells its Office and Windows software in China can be mentioned as a relevant example of impact of a political factor” (Dudovskiy, 2015).

Economic

Microsoft’s economic factors are based around two things. The first is the global economic crisis of 2008, which caused a huge blow to the world economy. Under the impact of the economic crisis, Nokia’s share price fell sharply which just made a great offer for Microsoft to purchase as a low cost. The second is America’s tertiary industry occupied for about 78 % of GDP, which the contribution of high-tech owned the most, the technology is crucial for the US which is the power source of economic development (Microsoft Corporation’s Strategy, 2015).

Social

Nowadays people are relying more and more so on mobile phones. Microsoft is gearing towards this change by implementing there software upon the phone so that people do not have to use their laptop devices for bigger programs like the office suite. The mobile phone is become more than just a symbol of communication. It is now a multi-functional tool that enhances our day to day lives in many ways. It is also affecting the consumer in psychological ways as well, as we move into more dependence on phones we lose the skill of remembering multiple things or decrease in communication as we look to our phones instead of our peers.

Technological

“Walking in front of others is the only way to survive in the high-tech field and the fierce market competition. High-tech products have rapid upgraded and short life cycle, it inspires higher requires to enterprises’ special application software and ability of continuing to update the hardware configuration. Nokia as a former mobile phone giant obviously hold numerous patents, specialized technical personnel and technical reserves the phone which is an advantage to help Microsoft to develop on smart-phone industry” (Microsoft Corporation’s Strategy, 2015).  

References:

Dudovskiy, J 2015, ‘Microsoft PESTLE Analysis’, Research Methodology, http://research-methodology.net/microsoft-pestel-analysis/.  

‘Microsoft Corporation’s Strategy’ 2015, http://studymoose.com/microsoft-corporations-strategy-essay.