Microsoft
Image credit: reuters

Microsoft, known throughout the world as one of the leading bodies in tech right now which was even about to cross apple in market value which tipped just below 3 trillion. They’ve gotten a lot of fame nowadays for their contributions to artificial intelligence (AI). Just look at OpenaI, Standing as a beacon of development in artificial intelligence, research and development. With its commitment to ethical AI and dedication to advancing the boundaries of human knowledge, OpenAI inspires and empowers a global community of researchers, developers, and enthusiasts.

 All aside, Microsoft has a fatal flaw which might lead to it’s downfall overall and might be the reason why it falls right behind apple. Microsoft lacks innovation and this will be explored in this article.

Table of Contents

Microsoft depends on legacy products

Microsoft has had great products in the past. Some worth naming are Windows and office suite. Though these products have been great revenue generators and the company has benefited greatly from their popularity but the dependence on these products and the inability of exploring new domains has lead to a conservative approach regarding innovation and coming up with new products. Just updating old software again and again and refusing to make anything new kills creativity inside Microsoft. It has a great effect by slowing down new technology and new paradigms. 

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Market dominance

It’s true that Microsoft has a history of dominating markets in tech, Most notably operating systems for personal computers and productivity software. Microsoft accounts for well over 90% in shares of operating systems like intel. Monopoly power and market dynamics have lead to a no competition win for them. Though this might seem great for the company from the outside. Long term effects of this include a lack of innovation and creativity inside the company. Competition breeds innovation, without any competition there is no need for employees to go the extra mile in their performance and develop or manufacture anything new for their customers. Their monopoly has also lead to many accusations thrown at them by people.

Strategy of Acquisition

Microsoft
Image credit: FourweekMBA

Although Microsoft is known greatly for acquisitions such as LinkedIn or Github but this doesn’t come without criticism. Their strategy of integrating these acquisitions with their own products has given them a hard time with critics. Critics of their policy argue that they kill the individual growth and independent success of acquired companies by making them too integrated with existing products. They made their first purchase in 1987 and have been making almost 6 every year since then.  They currently own 25 companies some of which are:-

  1. Activision Blizzard
  2. Linkedin
  3. Nokia
  4. Skype
  5. Mojang
  6. Github

Missed oppurtunities

It is believed amongst some observers of Microsoft that they have a history of missed opportunities particularly in the niches of cloud services and mobile computing. The lack of concern for current trends and innovative strategy isn’t good for them. A great example is how late the first windows phone was released. They released it on 21st October, 2010 meanwhile the first ever iPhone had been released long before that in 2007. Such a stiff and conservative approach to technology doesn’t suit a leading tech company. Technology is never static and is an ever evolving process of making tasks more and more convenient. In these rapidly evolving times. such a rigid approach will eventually lead to their own downfall.

Commercial for the first ever windows phone from 14 years ago in 2010

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