It’s Official: Microsoft Is Going Down

Fortune has just released its annual ranking of the world's most-admired companies and the news is not good for Microsoft. It keeps going down and the once-shining star is now on place 24! Even worse, Microsoft’s main rivals are sharing the top spots.
2014 Fortune Most Admired Companies List

1. Apple
2. Amazon.com
3. Google
4. Berkshire Hathaway
5. Starbucks
6. Coca-Cola
7. Walt Disney
8. FedEx
9. Southwest Airlines
10. General Electric

Apple remains the world’s most admired company. Who would have thought that many years ago when Apple was the little challenger to the all mighty Microsoft? Unfortunately, Microsoft missed out on the smart phone and tablet market. I have always been surprised by that because I have used Microsoft tablet PCs for years before Apple released their iPad, and I really loved my Windows tablets. Then Apple conquered the market and I soon swiched to iPads, MacBooks and iMacs. I can’t remember when I last used a Windows PC. In addition, Apple is starting to compete seriously in the office software market. Their new iWork suite is something that can now rival Microsoft Office.
Place two on the most admired company list 2014 goes to Amazon.com. Amazon is making strong inroads in the cloud market, one area where Microsoft is doing quite well. In fact, Microsoft’s new CEO, Satya Nadella, used to head up the cloud division and I am sure he would want to focus further on that growing market.
Place number three goes to Google, who is competing with Microsoft on many different levels, including the search, cloud computing, tablet, smart phone and Office software market. I believe Microsoft will find it hard to compete with Google in any of these areas.
If I was in Nadella’s position, I would want to completely transform Microsoft. I would probably break it up and spin out the two areas that are going well, i.e. Xbox and commercial cloud services. These two deserve to be set free and develop independently.
In the traditional area for Microsoft, the company needs to change the licensing for it’s main software products or it will lose out very quickly to Apple and Google.
I am unsure about the tablet market. I don’t think their Surface tablet (especially the operating system) can compete with those by Apple or Google. The reasonable good sales come from companies and individuals who don’t yet want to give up on Microsoft, because we have invested a lot of time and effort in learning how everything works. However, I believe it is only a matter of time until this changes.
I believe Microsoft's best days are behind it and the company is on a long but steady downhill slope. I wish Microsoft’s CEO Nadella all the luck in the world, but feel that he has taken on an unwinnable task. Maybe this is why other candidates for the top post made it publically clear that they were not interested.
What do you think? Is there hope for Microsoft? What would you do if you were in Nadella’s shoes? Please let me know…