Microsoft at Crossroads: Coping with the Changing Dynamics of the Industry





Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

For several years, US-based computing giant, Microsoft Corporation (Microsoft), stood as the market leader in the software services market due to its Windows operating system (OS) and its Microsoft Office suite. Of late, the company’s consumer segment reported declining sales attributable to the sluggish demand for Personal Computers (PCs). Industry experts opined that the advent of tablets and smartphones had resulted in PC sales reporting a decline worldwide as consumers preferred these tablets and smartphones to desktop PCs.

Despite the changing industry dynamics, Microsoft did not roll out any product catering to these new age customers for a long time. On the other hand, its competitors such as Apple Inc. (Apple) and Google Inc. (Google) were emerging as dominant players in the consumer segment due to their innovative products such as tablet PCs and smartphones and services such as Apps and cloud computing services for the consumers.

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Issues

The case is structured to achieve the following teaching objectives:

  • Understand the difficulties faced by an erstwhile giant in the global consumer market for software and services.
  • Appreciate the importance of innovation in a dynamic industry.
  • Analyze the effect of changing industry dynamics on companies.
  • Examine future challenges faced by Microsoft since Apple was growing its presence in the enterprise segment after dominating the consumer segment.

Contents
Introduction
About Microsoft Corporation
Trouble Brewing At Microsoft
Aligning With The Changing Industry Dynamics
The Results
Challenges
Looking Ahead
Exhibit

Keywords

Microsoft, Personal computers, Original Equipment Manufacturing, Market leader, Windows operating system, Microsoft Office suite, Tablets, Smartphones, Industry dynamics, Apple, Google, Cloud computing, Enterprise segment, Consumer segment, Online search, engine market, Gaming market, Web browser market, Social networking

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