Tomahawk, WI 8/19/2013 (Basicsmedia) – A number of analysts and industry experts appear to be convinced that Microsoft Corporation (NASDAQ:MSFT) has not enjoyed the level of growth which was originally expected of it. Secondly, there is concern on whether the company has lost some of the foothold and niche it enjoyed in the technological world a few years ago. When you look at the financial results which the company has been releasing in the past, you will be left impressed about its performance in this area. However, are good financial results truly indicative of how healthy a company really is? Let’s delve deeply into this issue.

5msft

Source:www.thestreet.com

Is MSFT Still A Market Leader

There is no denying the fact that MSFT has been struggling with its position within this industry. This has been the result of a number of strategic issues which it had to contend with in the recent past, and which appear to be far from over. If the company is to regain the little which it has lost, it will have to reinvest in innovativeness and execution of strategies it comes up with for this purpose. A large percentage of industry players and experts believe that MSFT was able to come up with better products than the ones which it has churned out of its incubators in the recent past.

MSFT Is Not About to Collapse

When it is said that MSFT appears to be struggling, this is not an indication that it is about to collapse, or on the verge of closing shop. The meaning here is that the company is not doing as well as might have been envisaged, compared to its size and position as a market leader. All the same, it is incorrect to state that investors have lost confidence in Microsoft as a major technological company. Anyone saying that Microsoft still enjoys the share of the market it did a few years back, would be classified as a very optimistic person, living outside the reality.

MSFT Must Invest in Innovation and Effective Strategies

As an indicator of just how much Microsoft has struggled in the area of innovation and strategy, you only need to take a look at what its major competitor, Apple Inc, has done in the market within the same period. In the last five years, no company in the technological industry has outperformed Apple Inc in terms of innovativeness, where it has produced some of the most loved and popular products in the market. This is my reason for questioning MSFT in terms of its overall strategy and ability to read the trends thus being able to produce relevant products.

The two trends which Microsoft may have missed, and which made it cede some ground to Apple and other competitors, include search and social media. MSFT missed these two trends, while Apple and others took advantage of them to cement their position, or at least help them to eat into the share which Microsoft held initially. Going forward, MSFT will need to keep in touch with the latest trends in the industry, as well as in many other aspects. It may not be facing serious threats right now, but if it continues playing second fiddle to others, its stock will suffer.

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.