From its 110-story perch atop Chicago's Sears Tower, Sears failed to see Wal-Mart coming. GM failed to respond to Toyota and other Japanese auto makers. The New York Times asks if the same fate will
befall Microsoft in its fierce battle with Google. Well, if it does--which seems ridiculous to talk about now anyway--it won't be for lack of trying. Microsoft is reinvesting a ton of money in
research and development for its products and services, including a recent overhaul of its advertising system. However, history would indicate that past success is often an anchor holding major
companies back. As one futurist who monitors both companies said, "The wind is really behind Google, and Microsoft's main tool for navigating the future is the rear-view mirror." If that sounds a
little foreboding for the software giant, don't forget it's demonstrated an ability to respond in the past. "I think this is a rare case where we are being underestimated," Gates said recently. So are
the roles reversed? Is Microsoft the underdog, here? With $35 billion in cash (compared to Google's $8 billion), you'd have to say Microsoft has plenty of money to mount a serious challenge.
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