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Challenges
The big challenge for Microsoft is its behemoth size. It's harder and harder for the company, as it gets bigger, to keep growing as it historically did. The computer industry is a mature industry. In the developed world, virtually everyone has a computer. So Microsoft, to continue growing, needs to find new ways to expand its market, which is why they want to get into games, wireless and business-software markets. In these areas, they're generating substantial losses.
To the extent that Google becomes a dominant player in the Internet market, it blocks an opportunity for Microsoft to expand.
But Microsoft did not achieve the position it enjoys today by rolling over in the face of adversity. Microsoft sees a future revenue stream in web-advertising and desktop search functions and in better knowing the consumer. So they are organizing their own formidable brainpower to attack the competition. And there are plenty of people who like Microsoft and its products just fine.
The Road Ahead
Microsoft may have to change its philosophy if it truly wishes to compete with Google. It gives major emphasis on its core competencies - operating system and desktop application businesses, which leaves some gaps to be filled. Companies like Google are successfully filling those gaps with their innovative offerings and thus giving serious threat to the business of Microsoft.
Will Microsoft or Google finally wins the race - we may have to wait one more decade to get the answer.
Concluded.
* Contributed by -
Nipun Jain & Manvendra Singh,
Class of 2006,
Amity Business School, Noida.
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