Microsofts Missteps Exacerbate the Multiple Market Changes It Faces
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5. An odd Nokia partnership
As mentioned, Microsoft's Nokia deal was poorly conceived and could hurt the company in the
long run. According to reports, Microsoft dropped a huge sum of cash just
to secure its deal with Nokia. Combine that with the fact that Nokia's market
share has plummeted and fewer people around the globe even want its products,
and it's clear to see that the deal might not have been in the software
company's best interests.
6. Failing to wrap up the living room
With the Xbox 360 and
Microsoft Kinect, it would appear that the software giant truly understands
what it takes to entertain people in the living room. However, at no point did
Redmond find a way to corner the living room this year. Now, there are hints
that Apple will be launching a television next year that will come with a host
of integrated services. This development may significantly limit Microsoft's
growth opportunities in the living-room-entertainment market during 2012.
7. Retaining Steve Ballmer as CEO
Steve Ballmer has been
running Microsoft for a long time. But he hasn't made the insightful decisions
that would have allowed the company to regain its former robust growth pace.
This calls into question whether he should remain Microsoft's top decision maker.
Over the last 10 years, Microsoft's stock price has dropped, its financials
aren't as strong as they should be and its position across the industry has
been marginalized. Add that to Microsoft's mobile troubles, and it quickly
becomes clear that Ballmer might not be the best person for the CEO job.
Unfortunately for Microsoft, in 2011 it made the dumb mistake of letting him
keep his job.
8. Overpaid for Skype
Microsoft
paid $8.5 billion for Skype. Although the acquisition was a good one that
should help the software giant compete against Apple's FaceTime, the company
overpaid for the voice over IP provider. Skype is a company that has
historically failed to generate respectable revenue and profits. With a largely
free-to-use business model, it's hard to see how Microsoft will see a positive
return on its investment. Microsoft paid too much for Skype. And it's time
everyone realizes that.
9. Tipped its Windows 8 hand too early
Although rumors were running
rampant earlier this year that Microsoft was launching Windows 8 in 2012, the software giant allowed that
information to slip too soon. By effectively pre-announcing Windows 8,
Microsoft put many enterprise road maps on hold as IT decision makers consider
whether they should go forward with plans to deploy Windows 7 PCs or wait for
the next operating system. Consumers, meanwhile, are also likely to wait on
buying a new PC until Windows 8 is out. Microsoft should have waited until 2012
to show off Windows 8.
10. Failing to make the mobile space about security
Microsoft this year tried to
play too nicely with its mobile competitors. In the meantime, it hurt its
standing in that market. One of Microsoft's key strengths in the mobile space
is security. Unlike Android, which has been hit hard by security woes, experts
agree that Windows Phone 7 can hold up to the vast majority of threats. Why not
make that a talking point and draw a clear distinction between both platforms?
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