Microsoft - Can The Sleeping Giant Write A Turnaround Story?

Sneha Shah profile picture
Sneha Shah

Microsoft (NASDAQ:MSFT) is the 3rd most valuable technology company in the world, having recently lost its crown to Apple (AAPL) and Google (GOOG). The Seattle behemoth has been slow to adapt to fast changing technology trends, such as mobile and cloud computing. The company has stuck mostly to its Windows and Office software for generating revenues and profits. Its entry into newer technology lines has not been successful. The company's entry into smartphones proved to be a disaster, with the "Kin" being killed soon after its introduction. The company also failed miserably in the mobile O/S area, as Google and Apple have captured almost the entire market. Despite having a huge first mover advantage, MSFT let a golden opportunity slip through its hands. Google's Android has captured an almost unassailable lead in the mobile O/S market through its free Linux based O/S. MSFT has also been unsuccessful in Internet Search services, despite spending a huge amount of R&D dollars (Bing has not captured a meaningful market share). The company's Zune music players also never matched the iPod in sales and popularity.

Despite MSFT's many failures in the last few years, the company has still managed to generate massive cash flows thanks to the dominance of its Windows O/S and Office software. Open source substitutes have not managed to dent MSFT's monopoly in this space. While Google has started to gain traction through is cloud based solutions, MSFT will continue to generate billions of dollars in profits from these products in the foreseeable future.

What are the Biggest Concerns for Microsoft

  1. PC and Laptop sales falling due to rapid tablet adoption - IDC and Gartner Inc. reported that worldwide PC shipments, in the third quarter of 2012, had contracted by the highest amount since at least 2001, compared to the same time a year ago. As a

This article was written by

Sneha Shah profile picture
I am Sneha Shah, the Editor-in-chief of Greenworldinvestor. A Chartered Accountant by profession, with interest in Finance,Green Industry, Economics and the Indian Market.

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