Case Study, Microsoft's Downfall
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Microsoft’s Lost Decade
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Microsoft’s Lost Decade
Final Case
Final Case
Table of Contents
Introduction 2
Part 1: Critique Unity of Purpose 3 Invest in Human Resources 5 Focus 6
Visibility Management 8
Fix Causes 9
Know Your Customers 10
Know Your Competition 12
Total Quality Management 13
Part 2: Recommendations 14
References/Links 19
Appendix 20
Introduction
Microsoft’s story serves as a prime example of the pitfalls of success. In this case we can analyze, critique, and make recommendations to avoid a similar disaster in the future. While they were really the sole company to open the window into computer technology for the everyday user, but over the last decade appears to have been a victim of its own success. Once so dominant in the industry which is basically created on its own, today cannot be described as “cutting edge”. The name no longer resonates with younger generations. Evidence of this struggling success can be seen in its stock prices which have completely plateaued and even began to drop recently. What happened? Why are they no longer creating wonderful technological advances for its consumers? In order to compete in the technology industry, a company needs to continuously be innovation for its customers; Microsoft was not doing that.
Despite facing a challenge in IBM in the beginning when Microsoft first entered the industry, who was also getting overly confident and comfortable with its position in the industry. It actually appears as though Microsoft has reenacted the problems of their former nemesis. Clearly not focused on development or bringing out a new product, and their new philosophy as expressed by the most recent CEO Steve Balmer about a decade ago was we won’t be first to cool but we will be first to profit. In other words, they don’t care
Microsoft’s Lost Decade
-------------------------------------------------
Microsoft’s Lost Decade
Final Case
Final Case
Table of Contents
Introduction 2
Part 1: Critique Unity of Purpose 3 Invest in Human Resources 5 Focus 6
Visibility Management 8
Fix Causes 9
Know Your Customers 10
Know Your Competition 12
Total Quality Management 13
Part 2: Recommendations 14
References/Links 19
Appendix 20
Introduction
Microsoft’s story serves as a prime example of the pitfalls of success. In this case we can analyze, critique, and make recommendations to avoid a similar disaster in the future. While they were really the sole company to open the window into computer technology for the everyday user, but over the last decade appears to have been a victim of its own success. Once so dominant in the industry which is basically created on its own, today cannot be described as “cutting edge”. The name no longer resonates with younger generations. Evidence of this struggling success can be seen in its stock prices which have completely plateaued and even began to drop recently. What happened? Why are they no longer creating wonderful technological advances for its consumers? In order to compete in the technology industry, a company needs to continuously be innovation for its customers; Microsoft was not doing that.
Despite facing a challenge in IBM in the beginning when Microsoft first entered the industry, who was also getting overly confident and comfortable with its position in the industry. It actually appears as though Microsoft has reenacted the problems of their former nemesis. Clearly not focused on development or bringing out a new product, and their new philosophy as expressed by the most recent CEO Steve Balmer about a decade ago was we won’t be first to cool but we will be first to profit. In other words, they don’t care
References: * Greer, Charles S. "An Investment Perspective of Human Resources," Strategic HumanResources Management, (2001): 5 * http://news.cnet.com/8301-10805_3-57471170-75/microsofts-ballmer-challenges-vanity-fairs-lost-decade-claim/