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Even companies with great brands suffer from setbacks from time to time. In Microsoft’s (MSFT) case, the release of Windows Vista was met with much criticism from industry observers, developers, and regular end users. In my opinion, much of this criticism was not fully justified by the facts. However, Microsoft faced a real risk that the value of the Windows brand would erode over time.

When a company faces this type of situation, investors want managers who are capable of admitting past mistakes as well as setting the course for improvements to repair the damage. It is good to see Microsoft CEO Steve Ballmer candidly admit some of these mistakes in this video interview regarding the upcoming release of Windows 7.

Embedded video from <a onclick="javascript:pageTracker._trackPageview('/outgoing/money.cnn.com/video');" href="http://money.cnn.com/video">CNNMoney.com Video</a>

Disclosure: The author does not own shares of Microsoft.

About the author: Ravi Nagarajan
Ravi Nagarajan picture
Ravi Nagarajan is a private investor and writer focusing on applying value investing techniques to find securities trading well below intrinsic business value. Ravi has over 15 years of experience in the financial markets and started investing on a full time basis in 2009. From 1996 to 2009,... More
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  •  
    Vista was a piece of junk
    2009 Jul 06 06:54 AM Reply