¶ … capitalize on a new opportunity was Microsoft. The company with the world's most dominant operating system completely failed to gain any traction for its mobile operating system, and is essentially a non-factor in smartphones and tablets as a result. Its longtime operating system competitor Apple is one leader, while new entrant Google is another. Microsoft failed to recognize the opportunity presented to it in mobile, despite operating systems being its core business. As a result, Microsoft now faces a serious threat to its business. The company essentially relies on Windows for the bulk of its cash flow. If it loses dominance in PCs, Microsoft is going to struggle mightily. Thus, the failure of the company to address the opportunity in mobile has morphed into a threat. Additionally, its failure in mobile was the result of failing to recognize...

Microsoft perhaps took for granted that it could waltz into the online OS space and take over. It underestimated how many of its customers use Windows for lack of a viable option, especially for most software needs. When presented with operating systems that had more applications -- that is to say more capability to do the things you want to do, which is the precise competitive advantage Windows has -- Microsoft's consumers leapt at the opportunity to take their business elsewhere. Apple has had a longstanding strategy of trying to convert smartphone buyers and iPad buyers into Mac buyers. Google is now launching computers with its own operating system, using capabilities it gained in the development and launch of Android. Google and Apple combined own mobile, now they are both threatening the dominance…