What caused Microsoft to stumble and lose billions in market capitalization - Essay Example

WHAT CAUSED MICROSOFT TO STUMBLE AND LOSE BILLIONS IN MARKET CAPITALIZATION? Total dollar market value of Microsoft outstanding shares has stumbled over the past few years due to majorly weak market strategies and failure to understand the ever dynamic digital service and technology the world. One of the causes of stumbling of Microsoft market capitalization was the changes in digital global marketing environment that found Microsoft unaware. The company failed speedily to provide strategies for survival in the new digital services and technologies.

The new digital world has been expansive with many youthful populations embracing the power of information. This is evident in a new world of information in social media and entertainment. The company failed to adjust to the post-PC world, and this saw companies such as Google, Samsung, and Apple gain more ground in the digital world. Another cause of the stumble of Microsoft has been a lack of diversity in the digital service and technology line that they boosted of controlling. For a company to adequately control the market it operates and increase the market share; diversity in service and product provision is necessary.

This goes a long way in spreading risks being digital service industry is dynamic. Microsoft as a company avoided this and concentrated on creating software that make PC run. Microsoft didn’t take advantage of their market strength and assuming the role of full-line digital device and Service Company. For instance, the company relied heavily on other companies such Dell, Nokia, HP to develop PCs, phones and Tablets that run their Software due to company’s inability to develop their hardware.

Eventually, Microsoft lost a lot of billions in market capitalization world.