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External Factors That Influence Microsoft

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Internal environment factors that influence Microsoft
“The internal environment focuses on the strengths and weaknesses of a company, which give them a certain advantages and disadvantages in meeting the needs of its target market.”(studymode.com)
The Microsoft ability to operate across different cultures in a highly globalized market world is an important competitive advantage that has generated capability to successfully enter in to foreign markets without negative effects. The company is also using cross-cultural teams to increase efficiency and to effectively face external challenges.
The strong brand recognition among target costumers helps Microsoft in launching new products in the market. The company has a highly intellectual workforce leading to new ideas being bounced and incorporated in the production process, fostering innovation and with the streamlined production process, creates successful products and generates more revenues by releasing newer version of each product.
“However, Microsoft has not been able to bring a new product in the market in the last decade that dominated the market place. The company successfully forayed into the entertainment segment with launch of X-Box but it is sharing leadership with Sony and Nintendo in that segment. Thus, new product development seems to be a major weakness for the company. This weakness would keep increasing in importance as company's old products lose revenues or market share.”(UKEssays, 2015)
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