SWOT Analysis for the Launch of a New Product - Essay Example

? Marketing Research: Competing Company and Product SWOT Analysis for the Launch of a New Product SWOT analysis is used as a strategic method of management in analyzing a company’s strengths, weaknesses, opportunities and threats. It is usually carried out in the wake of a new project or a business undertaking. All it provides for the organization is identification of principal internal and external aspects that may be either desirable or otherwise to the organization. This paper is destined at analyzing the Microsoft Corporation through conducting a SWOT analysis and using the findings to help in the launch of a new product. The product being launched is that of a rival company to Microsoft, Apple; therefore the paper entails a detailed analysis of the major areas that can be utilized to overcome the market power of Microsoft and promote the sale of the new product. Marketing Research: Competing Company and Product SWOT Analysis for the Launch of a New Product When a company conducts a SWOT analysis, it does not mean that it is in a state of crisis, but this is only a measure designed to understand whether it is suitable or not. It is usually conducted in the wake of a company’s launch of new major projects and business undertaking the organization wishes to embark on (Cleland & Ireland, 2007). To launch a new product, the organization has to conduct a detailed analysis of its current position so as to determine the means with which the launching of the project can be addressed based on the findings. Microsoft Corporation (SWOT Analysis) Strengths First, Microsoft has the advantage of being popular as the largest software company usually associated with software and hardware products that are highly innovative. This is displayed by the presence of more than 500 offices in 160 countries (Drucker, 2007). Secondly, the basic operating systems used globally are Windows 7, Vista and XP accompanied by suitable products such as Microsoft Word, Excel and Access among others. These offer the company a competitive advantage via the ease of integrating the products and setting of standard prizes for their standardized products (Hafner & Hibbert, 2001). Another major strength of Microsoft is the nature of rapid development of products and provision of timely updates as well as its strong, flexible and elevated quality of its staff. One of the other strengths of Microsoft PCs is the size. The design of its tablets and laptops makes them easier for portability and they are widely spread globally (Hafner & Hibbert, 2001). Weaknesses One major weakness of Microsoft is its failure to articulate the growth of its products, thus being overtaken by competitors with respect to productions. Similarly, the products are usually sold with an assumption that the customer is running a Microsoft operating system (OS) for its compatibility which has resulted in declining sales of the OSs and server software (Hafner & Hibbert, 2001). In addition, employee exhaustion is evident owing to intense deadlines for products and their launching. As Drucker (2007) reports, Microsoft is characterized by recurrent restructuring, many rules and regulations with a domineering atmosphere that causes employee morale to reduce and sometimes loss of instrumental employees. This slows down the company’s innovative process. Microsoft has been dormant in the Internet space up to the time MSN was released although it still faces tough competition from Yahoo. With the increased consumer demand of the products, there has been limited human resource to deal with these needs in good time. Opportunities Microsoft has the opportunity of having access to cheaper international telecommunication and new markets since many people around the world are connected to the Internet (Drucker, 2007). With the demand for personal computers (PCs) and software components increasing worldwide, despite the market being flooded by attractive handheld devices, Microsoft can still produce more and increase their sales. Finally, Microsoft has had many regulations working in their favor; thus, the company can continue enjoying production of computer devices and software with just a few problems (Hafner & Hibbert, 2001). Owing to their high spread, the necessary software for the PCs is easily accessible. Microsoft desktops are spacious enough to allow for the addition of other hardware, for example, network cards and multimedia cards among others (Cleland & Ireland, 2007). Threats To ensure its position in the market, Microsoft has to work tooth and nail to develop new and innovative products to surpass those of the competing companies such as Apple and Linux. As Cleland and Ireland (2007) reveal, all the other competitors have established themselves with respect to Internet services. Another threat are international foreign exchange rates that keep changing, and thus affecting revenues in the world market. The competitors of Microsoft have recently been recording massive growth in their sales and clients, thus posing a significant threat to the organization (Drucker, 2007). Currently, much software and hardware is being integrated into the market; hence, Microsoft has to keep its PCs well updated. In addition, the PCs are to be manufactured and distributed at lower prices – something which is hard to achieve with the increasing competition. Also, the organization faces stiff competition for PCs from other companies, principally from Apple (Hafner & Hibbert, 2001). Launching of Apple iDesk After detailed analysis of the company’s major competitor (Microsoft), the launch of the new product (Apple iDesk) can commence based on maximum utilization of the organization’s weaknesses. Apple has the ability to articulate its products in the market and keep up with the trend; hence the introduction of the product will be a success based on the company’s reputation (Cleland & Ireland, 2007). In addition, Apple has gained immense popularity in the U.S., Europe and Asia. This will ensure that the new product excites the target market owing to the increasing demand for the products. As earlier seen, Microsoft is not well established in regard to Internet services – something that can be utilized by Apple since its Internet services are well advanced. Thus, sales will rise plus online advertisements will earn the product a place in the global market. One thing shown by research is that Microsoft employees operate under tight supervision and schedules, which leaves them dissatisfied with others even resigning. According to Drucker (2007), Apple should use simple strategies and guidelines instead of rules so as to realize maximum capability of their employees and provide them with sufficient remuneration to avoid loss of instrumental workforce. All organizations face different obstacles on their way to success, but they must be overcome for the objectives to be achieved (Drucker, 2007). For the Apple iDesk to force its way to the top market, it has to maximize on the weaknesses of its closest competitor and its opportunities with a concrete exploitation of its strengths. If all these are put into consideration, the launch of the product will be a success and the rate at which the product establishes its status in the market will be alarming. References Cleland, L. D., & Lewis, R. I. (2007). Project manager's handbook. McGraw-Hill Prof Med/Tech. Drucker, F. P. (2007). The effective executive (Classic Drucker Collection). Butterworth-Heinemann. Hafner, W. A., & Hibbert, L. E. (2001). SWOT analysis: Microsoft Corporation.  Read More