SWOT Analysis in the software industry
Topics: Strategic management / Pages: 7 (2220 words) / Published: Aug 15th, 2015

Table of contents
I. Introduction 3
II. SWOT Analysis: method description 4
III. SWOT Analysis: example 4
IV. Background and related literature 4
V. References 4
VI. Appendix 4

List of figures
Figure 1: A basic SWOT Analysis matrix 4
Figure 2: SWOT Analysis for Microsoft (see Appendix for larger version) 4

List of Tables
Table 1: The steps that have to be followed in order to carry out a successful SWOT Analysis. 4

I. Introduction
In the past twenty to thirty years many changes and developments have taken place in the software industry which started off during the 60s mainly in the United States of America and experienced a revolutionary boom since the 1980s (Steinmueller, 1995).
There are many different ways and methods of developing software and planning the strategy of a software development company and as it is shown in many recent research projects.
Most of these projects are usually concerned with the way that software is developed and not the way that the strategy of the company as a whole is planned (Cusumano, MacCormack, Kemerer, & Crandall, 2003). Another important factor is which techniques and methods are used to analyze company’s environment and how the strategy is formulated and implemented.
In this paper we will try to analyze in detail a very popular method for strategic planning which has been mostly used for product portfolio planning and/or strategic planning on an abstract level (Houben, Lenie, & Vanhoof, 1999).
We will focus our interest in the software industry and base our research on the case study of the Austrian software industry as it is presented in (Bernroider, 2002). Additionally, we will try to present certain guidelines, in order to carry out a successful SWOT Analysis for any software development company.
This is the method of SWOT Analysis, which was developed from Albert Humphrey during the 1960s, as part of a research project for Stanford University.
In the following sections we will try to elaborate on SWOT



References: 1. Bernroider, E. (2002). Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large Software Enterprises: An Austrian Study. European Management Journal , Volume 20, No. 5, pp. 562-573. 2. Cusumano, M., MacCormack, A., Kemerer, C. F., & Crandall, B. (2003). Software Development Worldwide: The State of the Practice. IEEE Software . 3. Grundy, T. (2006). Rethinking and reinventing Michael Porter 's five forces model. Strategic Change , Volume 15, No 5, pp 213-229. 4. Houben, G., Lenie, K., & Vanhoof, K. (1999, August). A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Decision Support Systems , Volume 26, Pages 125-135. 5. Porter, M. (1998). How competitive forces shape strategy. In M. Porter, On Competition (pp. 21-38). Boston, MA.: Harvard Business School Press. 6. Steinmueller, E. (1995). The U.S. Software Industry: An Analysis and Interpretive History. In D. C. Mowery, The International Computer Software Industry. 1995: Oxford University Press. 7. Ward, J., & Peppard, J. (2008). Strategic Planning for Information Systems, third edition. John Wiley & Sons, LTD. 8. Wilson, R. M., & Gilligan, C. (2005). Strategic Marketing Management, Third Edition: planning, implementation and control. Butterworth-Heinemann. VI. Appendix

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