Microsoft had a very bad week last week, just after the 'reorg' PR campaign [1, 2, 3, 4]. Gregg Keizer said that "Microsoft's attempt to transform its dog-eat-dog corporate culture into a kinder, gentler cooperative climate is likely doomed, according to an expert in failed business strategies."
"Note that Microsoft takes almost a billion-dollar charge on Surface (way to hide the losses)."What "kinder, gentler cooperative climate"? The bribes? The patent extortion? Those are just baseless promises. Anyway, the article goes on, citing Carroll. Here is some background: "Carroll's book, which he wrote with fellow Devil's Advocate co-founder Chunka Mui, conducted postmortems on some of the most famous business failures, and is based on research into 2,500 enterprise flops. Devil's Advocate, meanwhile, is an alliance of experts who help corporations evaluate strategy shifts."
What shifts of strategy have been seen in Microsoft? That has been mostly PR. The real business was the illegal monopoly on formats and a common carrier, Windows, which is rotting because of form factors diversity that even bribes cannot make up for.
We recently wrote about Dell's resistance to Vista 8 and now we witness resistance to Microsoft as a whole, accompanying news about the company's shares collapsing shortly after 'reorg'. Well, here is what Pogson makes of the 'reorg' and here is a noteworthy observation about OEMs walking away from Microsoft, one recent example being Microsoft's partner Samsung (older news from this year) and a new example being Lenovo, which has some former Microsoft staff at the top. Here is the news:
Microsoft has been having a rough time with its fledgling Windows RT operating system. Devices using the tablet-centric operating system, have sold poorly since the operating system was introduced last year. The flagship tablet running the operating system from Microsoft, Surface RT, recently received a significant price cut in an effort to spur sales.
"he NSA scandals definitely won’t help Microsoft this year."Just starting to show? No, people pointed them out just weeks or months after the debut. Here is coverage from IDG which is not really shocking. It says that days ago Microsoft "booked a large write-off to its Surface RT business after it slashed prices on the tablets to stimulate demand this week. Its quarterly earnings results also showed that Windows 8, an operating system designed to bridge the divide between PCs and tablets, has been so poorly received that it contributed to a revenue drop in its operating system software unit."
This Vista 8 stunt is similar or reminiscent of how Microsoft previously hid massive losses. Some coverage is filled with understatements. These financial tricks are nothing new and the scams begin. As Will Hill put it:
Microsoft took an 11% decline in value, $32 Billion, on their latest earnings report. No one is buying Vista H8, Microsoft's crappy tablets, which had $900 million in unsold inventory, or Nokia's crippled phones. The reorg fooled no one.
https://plus.google.com/u/0/113117251731252114390/posts/it9853xDVVC
As usual, the Microsoft press and Warren Buffet say, Buy some Now! Even the CNN article claims "decent numbers". What fraud.
http://www.forbes.com/sites/dividendchannel/2013/07/19/microsoft-corporation-enters-oversold-territory-msft/