Tomahawk, WI 8/22/2013 (BasicsMedia) – It has been said several times that Microsoft Corporation (NASDAQ:MSFT) has been losing a significant portion of its market share. New entrants in the industry where MSFT services are provided have been eating into the company’s market share. This appears to be a trend which won’t cease any time soon. The company provides operating systems, business application solutions, server applications, applications for improving productivity, in addition to tools which are designed to make it easier to manage desktops and servers. Why is it losing market share?


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The fact that MSFT never gives customers multiple choices to choose from at any given time, is a factor which is haunting it. Microsoft is a major and dominant figure both in the corporate and personal fields. However, it is the only one which determines when its customers can make upgrades to a new system or solution. Many consider this to be working against it, and are opting to switch to other providers which offer services and products similar to Microsoft’s. If this is making MSFT to lose its share in the market, there is need to change before things get worse.

MSFT Must Provide Better Protection to its Clients

There is no denying the fact that MSFT’s user base is the largest of all software companies put together. While this is a good thing, it has made the company suffer a lot since its software is the one targeted the most by malware and spyware. MSFT has worked overboard to reduce the threat posed against its products, but this is proving quite difficult since it has to expend a large amount of its resources to tackle this menace. The emergence of Google as a company which offers similar services, has eaten into the market share which MSFT enjoyed in the past.

MSFT Must Tackle Threats Posed by Open Source Community

MSFT has to contend with emerging powerhouses and threats such as the open source community. Open source community provides products which are freely available and don’t cost a penny, which is quite unlike what MSFT offers. Many users are now looking at open source products as better alternatives to MSFT, thus eating into the market share which the company has enjoyed since its inception. Certain products launched by Microsoft haven’t received wide or universal acceptance. They have only attracted complaints, causing many to shift elsewhere.

Apple is MSFT’s Threat

Apple presents a major threat to MSFT as well. It seems that MSFT must contend with multiple threats from various sources. While investors are still showing remarkable faith and loyalty to MSFT, unless long term strategies are put in place to market the company better than has happened, and show its worth to investors, things might change in the near future. It is still a market leader, with a strong and loyal customer base, and makes products which are needed in the IT field. It remains a viable option to investors with both short and long term interests.

MSFT is a viable stock. It may have suffered, and will probably continue to suffer loss in its share of the market. But a behemoth of a company such as MSFT cannot afford to continue disregarding the damages and hits it is taking in its share of the market. There comes a point when it will need to take decisive steps to make it attractive to the current and prospective investors.

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