Microsoft Lumia - SWOT Analysis by Mitchell Formica

Strengths

Microsoft is world leader of software development, holding the title as the world’s biggest supplier of computer software. “According to Steve Ballmer Microsoft Chief Executive (2013), Microsoft’s Windows occupy 91.49% sharing of the global PC operation system. Nokia has had powerful hardware design concept and abilities of manufacturing, also Nokia’s Lumia occupied approximately 82% of the market. So, acquisition of Nokia was a great record for Microsoft’s corporate strategy”.  (Microsoft Corporation’s Strategy, 2015).  See Appendix 1.1 for further details.

Weakness

Microsoft jumped into a market that was already occupied by two other large scale organisations with considerable market share. At the time most of the market shares have been taken by Apple and Android. “According to Bamburic (2013), in 2013, Window Mobile only occupied 2.9 % from the smart-phone market share, it is a bad record which compare with Apple’s 18.2 % and Android’s 74.4 %. (Bamburic, 2013).  See Appendix 1.1 for further details. Another weakness for Microsoft is that it is considerably hard to get people to change from an already existing phone with OS to a totally different format. Although everyone is most likely familiar with windows operating system it’s still not the norm to be using it on a mobile device and therefore makes for a harder substitute change option from the consumer’s point of view.

Opportunities

Following on from some weaknesses there are some opportunities for Microsoft. Whilst Android occupies a large amount of the market the loyalty from android users is considered unstable and can shift. Apple on the other hand are too expensive for some consumers offering no value option at the Lumia and Galaxy S7 level. “Window mobiles get a chance to attract those customers. Functional With the developing Information Technology, people see mobile as a necessity, and mobile phone is not just a communication tool, consumers concern about the multi-function and the brand of mobile phone” (Microsoft Corporation’s Strategy, 2015).  

Threats

Lastly we have some threats. Obviously we look to the competitors Apple and Samsung and even Google as they own Android. HTC is also a small competitor but a competitor none the less. They all are trying to gain market share and will therefore try to innovate work on new ideas and market their own brands tirelessly. See Appendix 1.1 for further details.

References:

Bamburic, M. (2013). What we know about Windows Phone 8.1 so far? [Online] Available From:http://support.techlogic.net/index.php?/News/List/Index/134. [Accessed: 28th February 2014].

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