Tomahawk, WI 9/03/2013 (BasicsMedia) –  The recent surge in share prices of Microsoft Corporation (NASDAQ:MSFT) with the announcement on the retirement of Steve Ballmer ascertains that the investors had for long waited for a change in the leadership of this Windows giant. However, it would all be thorns for the new Chief Executive Officer, as it appears that each and every operating division of the company is heavily under struggle and would thereby need special attention to move off from any further setbacks. The new management would mean strong hopes to the investors and is expected to give their hands full to pull back this struggling firm into the growth path.

Fast declining Windows market

The Windows operating systems, which once proved to be the highest revenue generating segment of the company, now presents the biggest challenge. This is primarily due to the declining markets for traditional personal computers such as laptops and desktops and users are largely moving towards tablets and smart phones even for their computing purposes. The first quarter of this fiscal year had presented the largest ever decline of 14% in the sales of traditional PCs.

Though Microsoft had made sincere attempts to enter into the markets for smart phones through its Windows 8 and Windows Phone, the attempts had not presented any strong success to the firm. It is worth noting that Windows Phone is growing very slowly in the smart phone markets and had gained only a marginal share of 3%. It had recently been commented by the research analysts at Gartner that the Android operating system of Google would largely replace Windows by 2017.

Investment in web services – a failure

On the other hand, Microsoft had continuously been trying to get a strong hold in the internet services and had poured billions into this segment since 2009. However, the search engine of the company, Bing continues to stay far behind the search services of Google Inc. and Gmail had overtaken the Hotmail of Microsoft last year to become the largest email service in the world. The company had spent around $11 billion for the online services division since the first quarter of 2005 and Bing is the single largest product in this division. Despite such heavy spending, Bing proved strong enough to attract only 18% of the market for search engine services, compared to the 67% market share grabbed by Google.

Raising competition for Microsoft Office

Over the years, Microsoft Corporation had almost enjoyed monopoly in its Office product and the business users had until recently not seen any viable alternative to this product. However, with the emergence of Google Docs, it is possible that this monopoly might be wiped off in the near future. While it is true that the Google Docs is quite an inferior product to Office, it is also worth noting that the use of Google Docs comes with the advantage of being free. It is thereby possible that this tool of Google Inc. might prove strong to chase majority of Microsoft’s customers, especially those who do not require the advanced features of Microsoft Office.

All such high level of uncertainty and struggles surrounding the stock of Microsoft Corporation would prove advisable for the investors to wait and see the future direction of this share.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.