Microsoft jumping the shark?
- From: Belphegor <huelse@xxxxxxxxx>
- Date: Sun, 3 Feb 2008 15:34:06 -0800 (PST)
Of course not... not yet.
But their bid for Yahoo proves that they have completely failed with
their online portal efforts and are basically back to the only
alternative they know in business: buy out the competition with loads
of dollars and hope the market will just roll over and comply.
Microsoft showed just how little they understand the online market
with losses of their online services division doubling in 2007 to $510
million... Then, scared that they may miss the 'social networking'
craze they spent $240 million for a 1.6% in non-profit making
Facebook. The list goes on with aQuantative and Fast Search.
But no matter how much money they spent, they still can't compete with
Google and Yahoo.
So what is Ballmers answer: Buy Yahoo...
The problem is that, while synergy benefits will save cost and reduce
employee numbers in the combined enterprise, they will still have no
clue as to how to compete in a market that does not fear them. Company
culture clashes will have to be resolved, also, the Microsoft online
branding will probably disappear because Yahoo! is considerately more
palatable to the internet community.
In the end, if the deal happens, it is two companies huddling together
who have proven they can not compete with innovative competitors who
put the emphasis on user-friendliness and design.
And both Microsoft and Yahoo! have a lot of talent employed already,
so it is hard to believe that Microsoft taking over Yahoo! will
improve the lack of any of the above qualities in the future.
.
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