SWOT stands for strengths, weaknesses, opportunities and threats. It is an analytical tool to understanding the environment of a business. The goal is to understand the internal environment (strengths/weaknesses) and the external environment (opportunities/threats) that can help or harm a business. Microsoft and other companies have conducted SWOT analyses to provide insight into the business.


Some strengths of Microsoft are its name recognition and its rapid product development. The Microsoft Office productivity suite (Word, Excel, Outlook, etc.) are widely used throughout the business community. Microsoft is also known for releasing new product updates and product fixes throughout its network.


Microsoft did not recognize the growth opportunities of the Internet; therefore, Google was able to get a foothold in the search engine arena.


Microsoft is expanding into the video game market by producing items such as the Xbox.


Microsoft has numerous court battles with other entities regarding antitrust and software developer lawsuits.

Next steps

With Microsoft, as with any company that performs a SWOT analysis, the next steps are to begin to work to enhance strengths, minimize weaknesses, capitalize on opportunities and address threats.