External assessment threats

Based on the following; what are the external assessment threats?

Threats Weight Rating Weighted Score Demand shifting from personal computers to smartphones and tablets. According to Gartner’s latest forecast, worldwide PC shipments are expected to decline 9.5% in 2022, and consumer PC demand is expected to decline 13.1% in 2022, 0.09 0.09 While Gartner also forecasts a 7.1% decline in 2022 for mobile phone shipments, the demand for 3G phones is expected to pick up at a faster pace in 2023. Competitors stealing market share in operating systems. Increase in mobile platforms is moving consumers away from Windows and toward Android and 10S. As of September 2022, the Android mobile operating system is the world’s most-used operating system when judged by web use. It has 0.09 0.09 43% of the global market, followed by Windows with 29%, Apple 105 with 18%, macOS with 6%%, then desktop Linux at 1.1%. 3 Cyber Crime. Cybercrime is estimated to cost the world $10.5 trillion by 2025. Microsoft needs to invest heavily in cyber 0.08 3 0.24 security to combat this. Unexpected and unfavorable foreign exchange rate fluctuations negatively impact revenues. Unfavorable foreign exchange rate movement within the quarter negatively 0.08 0.16 impacted revenue and diluted earnings per share $(595) million and $(0.04), respectively. 5 Amazon Web Services grew 37%% in the first quarter of 2022. AWS is a major competitor to Microsoft’s cloud service 0.06 3 0.18 Azure. 6 Risk of antitrust litigation. Many major competitors Including Google and Facebook faced antitrust suits in 2021. With dominant PC OS, second largest cloud platform, and major 0.05 0.05 acquisitions, this is a risk for Microsoft. Politicized favoritism. Microsoft was awarded a $10 billion contract over Amazon. Many viewed this as the Trump administration favoring Microsoft over Amazon and a notice 0.03 0.03 of lawsuit was filed. Intense competition in video conferencing tech for businesses. Zoom has more than a 30%% market share in the US and UK Microsoft Teams is not as popular as Zoom in many 0.02 3 0.04 countries. 9 Microsoft has important diversity, equity and inclusion goals. Recently they have invested heavily in gaming with the acquisition of Activision Blizzard. The gaming community is 0.01 3 often referred to as "toxic" and many anti-gay other toxic 0.03 sentiments exist on gaming platforms. This is a threat to Microsoft’s DEI goals. 10 Static Pricing models. Microsoft products are often big, expensive, and sometimes out-of-reach for small businesses. Not having cheaper alternatives could cause a loss in market 0.01 4 0.04 share. Total EFE Score 1.00 2.29