Can Microsoft avoid being the next GM?
The question for Microsoft's new CEO is whether he can change MS's most basic culture of market share entitlement. John Gruber points out today that Steve Ballmer never let go of the idea that Microsoft's rightful place is to have "Windows Everywhere" on almost every device, as they did with 95% control of the PC market in their heyday.
This is exactly the trap GM fell into in the 1980's and 90's. GM expected that it's rightful market share was the 50+% it had enjoyed through the 1950's. And this thinking controlled their product and operational strategies. They kept maintained excess capacity, supported too many brands and avoided countless other tough decisions because the managers presumed that their market share drops were temporary and they had to be ready for the imminent rebound that was their due.
They didn't address the real problems with quality, design, efficiency and all the other factors that drove consumers actual decisions.
Similarly, under Steve Ballmer, MS has done very well in the lucrative corporate market with enterprise products and MS Office. But their consumer and new product's have all failed to gain traction. The current core strategy of Windows Everywhere speaks to MS's market share goals more than than consumers needs. Is anyone at MS asking if a phone is different than a notebook?
And bringing back Bill Gates seems like exactly the wrong move. It ensure that MS will be incapable of radical or even bold moves. Gates is brilliant and a great leader. He had great vision 15 years ago. But since then, the company he's led as CEO, has been wrong pretty much every time. (Xbox excepted).
Windows Phone is now (finally) a terrific device. But MS was tentative in launching it and couldn't gain traction. Now they've bought Nokia, but are still going to be at the mercy of the carriers. Old MS would have had the guts to do what Apple did and wrest control from the carriers. When they do, we'll know they are serious about competing.
The tech industry will benefit greatly from MS as a strong competitor to Apple, Google, Facebook and Amazon. It will make for better overall products and consumer choice.
To keep it's influence, Microsoft needs to change it's culture from one of market share entitlement to one where they earn their share every day.