Microsoft has created itself as a brand for operating systems and computing software. Company’s loyal and hardworking workforce is identified as the major strengths of the company and their flexibility enables Microsoft to meet seasonal/cyclical projects (Hafner Arthur W. &Hibbert Erica L., 2001). In addition company’s global presence has helped to minimize the cultural differences. Company’s rapid product development process allows updating software and releasing new products on time (Hafner, Arthur W. &Hibbert Erica L.,2001). Company’s product such as Word, Excel, PowerPoint, Access other than operating system have high name recognition and is accepted widely among its consumer base. They never look for any other alternative nor available easily at low price. Such products have become a powerful tool for corporates as well and thus standardization and competitive advantage are being promoted because of its integration and cost-effectiveness features (Hafner Arthur W. &Hibbert Erica L., 2001).
Microsoft, being a market leader for technology products and services, could not build its presence in the internet space. Company’s leadership was failed to anticipate the growth or popularity of the Internet and own very few products for internet applications. Not a key player in the Internet space and few products for Internet applications. In addition, company could not focus on developing new line of products other than operating systems and computing tools (Hafner Arthur W. &Hibbert Erica L., 2001). Even operating systems were needed to depend on the hardware configuration. Due to increasing competition with Apple, Linux, IBM, Oracle, etc., company’s sales were recorded low.