Microsoft Will Survive Its ‘New Coke’ Moment

Windows 8 was the revolution that wasn’t. Instead, it’s a product gaffe being likened to the infamously failed “New Coke” launch. But don’t count Microsoft (NASDAQ:MSFT) out just yet. In a lot of ways, the boring, button-down software giant was just a little ahead of its time. After a storm of criticism from frustrated long-time Windows users, Microsoft announced that it would be making significant changes to its Windows 8 operating system. The details have not been released yet, but it’s assumed that the changes will include bringing back the “Start” button that has been a fixture in the lower-left corner since 1995 and giving desktop users the ability to bypass the tiled start screen on system startup.

Is this a failure for Microsoft? In some critical ways, yes. In a classic case of arrogance, Microsoft assumed that, after some initial grumbling, consumers would embrace the Windows style because, frankly, they weren’t given a choice. But here’s the thing. It doesn’t matter. This is why I love Microsoft. It can have a fundamental screw-up like Windows 8 and still keep plugging along. Steve Ballmer called the launching of Windows 8 a “bet the company” moment, but nothing could be further from the truth. Microsoft’s “moats,” or competitive advantages, are so strong that it can survive and thrive even after making a major miscalculation like this.

Source: InvestorPlace

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