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Steve Ballmer is pained by his company's struggles, but his attempts to turn around his company's struggling units have seen little success thus far.   (Source: Reuters)

Microsoft Zune is one of the company's struggling products. Others include its search efforts, its mobile phone efforts, and its tablet efforts.  (Source: LIFE)
CNN Money says that the end may be near for Microsoft's attempts to appeal to the masses

Amid record profits Microsoft has serious cause for concern.  It is coming off the high of the fastest-selling operating system in its history -- Windows 7.  That OS sent its profits soaring and convinced some that Microsoft was no longer on the retreat.

But part of Windows 7's success was due to how poorly received Vista was.  With Windows 8 landing reportedly in 2012, the company may have significant difficulties in convincing the average consumer to upgrade to its latest and great OS.

Other than the Windows brand, Xbox and Microsoft Office are the company's other two major successes in the consumer sector.  But the Xbox trails Nintendo's “family friendly” Wii and the Office team is getting seriously nervous about growing consumer interest in OpenOffice.

On the other hand, Bing has failed to gain even 10 percent of the search market in most metrics, despite a massive ad push and a deal with Yahoo. Zune remains a tiny player in the MP3 market, having failed to become a true competitor in terms of sales to Apple's iPod line.  And Microsoft's smartphone empire, once a major player, is in rebuilding mode after the disastrous Kin and ill-received Windows Mobile 6.5.  It is placing its hopes on Windows Phone 7, but that phone enters a packed market.

Internet Explorer, Microsoft's browser, has long led the market, but has seen a steady decline in recent years, which may allow Firefox and Chrome to eventually reach its formerly insurmountable market share peak.  Microsoft's key hope here is a new product, Internet Explorer 9.  

So while it seems that 
CNN Money's recent headline, "Microsoft is a dying consumer brand", is a bit sensational, it is a claim that is grounded in some reality.  

One of the key points in the article is that aside from the struggles of many of Microsoft's consumer "expansion" business units, it is also bleeding executive talent, like many other struggling firms (HP, Yahoo, etc.).  States the report, "Microsoft's executive suite is in turmoil. CFO Chris Liddel, entertainment unit head Robbie Bach, device design leader J Allard and business division chief Stephen Elop have left within the past year. Ray Ozzie joined the exit parade last week."

The report praises Microsoft's recent efforts, but concludes in cautionary fashion, "Microsoft just has to hope [they're] not too late."

Much like the Romans or Greeks, Microsoft has built a mighty empire, a key part of which are expansions into new arenas -- in Microsoft's case phones, video game consoles, and internet services.  

But much like the Roman empire fell, Microsoft appears dangerously close to losing its expansions to hungrier parties.  But much like Rome, it will likely hold on to its central holdings (Windows, Internet Explorer, Xbox, and Microsoft Office) for some time, even if its other efforts fall into commercial purgatory.

The talent gap is absolutely a concern for Microsoft.  And equally concerning is the fact that the company is being led by Steve Ballmer.  Mr. Ballmer, while a brilliant tactician in some regards and a man with obviously enormous love for the company, has failed to execute a strategy to turn around the company's struggling units -- or one that works at least.  

To succeed, Microsoft may need to move on without Mr. Ballmer.  But who to pick to lead the world's largest software company, perhaps the most powerful technology company in the world?  The leading candidates have already left the company.  That means that, essentially, there's no easy answer to Microsoft's leadership issues and that the ongoing risk to the company is tremendous.

Is Microsoft's consumer brand "dying"?  Not yet, in our minds.  But it lacks the hunger that it once did.  And it most certainly sorely misses the leadership of its founder and chief visionary -- Bill Gates.



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Really? Dead?!
By nimatra on 10/27/2010 4:48:58 PM , Rating: 2
common guys, be fair! they have done some stupid things with vista, KIN and I don't know Microsoft Bob.
but how could you say that xbox has lost the ground! they have the only online gaming network other than the billizards warcraft that is profitable by itself. Or just look at the games attached rate of consoles, xbox's is 10.8 and sony's is 9.2 and the wii is not something near them at all.
I'm happy that at least no one questioned the Office! I think everyone agree that its nearest competitors are several years behind.
Please define "the dead by the time of the birth" for the zune! they have sold 20 millions of the device which you call it dead. add to that the zune applications for the xbox and now wp7. I mean the mere fact that ipod sells lots more does n't mean that zune is dead. is iWork dead to anyone?
Another thing to remember is the great programming environments that microsoft has made available to its developers, can the stupid object c compete with C# ? or is there any IDE comparable to Visual Studio? and considering these you consider Mac OS as a winner against Windows just because it looks nice?!
I remember when xbox was released anyone in the media saying micorosft should abandon the xbox it's just waste of money and it will never be profitable, now look at entertainment department of microsoft, it generates1b$ in profits and just wait until kinect reaches the store shelves. now, they are saying the same about microsoft's online services.
I remember an article I read somewhere 3 years ago when xbox 360 was eventually becoming profitable saying: "about the Microsoft, it always comes late but catches the crown".




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