SWOT Analysis: Microsoft Corporation Strengths · Applications and Operations divisions along with newly created Online Services Network (MSN) divisions · Flexible workforce via temporary workers for seasonal/cyclical projects · Loyal, hardworking and diverse workforce (20% minority, 26% women) who, in addition to good compensation, has the opportunity to succeed financially through the purchase of shares · Multinational company operating through regional subsidiaries to reduce minimize cultural differences in more than 60 countries · New product, Neptune, is a Windows interface and is an example of intelligent software · Relatively rapid product development processes that allow timely updates and releases of new products · Revenues and profits increasing 30% per year with mergers/acquisitions or investments in 92 companies over the last five years · Software products enjoy high name recognition, broad business and consumer acceptance (Word, Excel , PowerPoint, Access) and numerous powerful features used around the world, thus promoting standardization and competitive advantage through their ease of integration and affordability · Top score from Fortune as Best Company to Work For and Most Admired Company · Windows 95 , 98, 2000 series and Windows NT are known globally as the desktop PC operating system with a market share of approximately 88% · The largest software company in the world with global name recognition and strong reputation for products innovative Weaknesses · Between 1990 and 1995, Microsoft's leadership failed to properly anticipate the growth or popularity of the Internet · Bill Gates became Microsoft's chief software architect but had not yet developed a substantially new product line · Dependence on hardware manufacturers to pre-install Microsoft's PC operating system · Negative aspects of product launches and deadlines substantially contribute to employee burnout · Employee turnover increased from 6% over a ten-year period to 7 .4% · Declining sales in the operating system and server software industries · Frequent reorganizations, bureaucracy and autocratic atmosphere dampen employee creativity, leading to the loss of key personnel and slowed communication and innovation ; 5 levels of management: IRS audits in 1989 and 1990 revealed the employment status of temporary workers for whom Microsoft did not withhold taxes or allow them to participate in Microsoft's Savings Plus plan or Employee Stock Purchase Plan, leading to a finding of tax liability for Microsoft in Vizcaino's "permatemps" litigation · Little to no presence in the wireless market and Windows CE has been disappointing · Not a key player in the Internet space and few products for Internet applications · Perceived by many as a ruthless competitor that uses its dominant market position to marginalize the competition by stealing/destroying competitors' products, stifling product innovation, and decreasing the availability of competitors' products