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

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.