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=== Challenges and Competitive Pressures === Microsoft faced significant headwinds in 2010. Apple’s vertical integration strategy, which seamlessly combined hardware and software, allowed it to dominate the consumer market with products like the iPhone and iPad.<ref>{{cite web |url=https://lowendmac.com/2009/market-strategy-apple-vs-microsoft/ |quote=Apple's vertical integration strategy, combining hardware and software, contrasted with Microsoft's approach, which focused on software licensing. }}</ref> Google’s Android OS emerged as a formidable competitor in the mobile space, intensifying the rivalry.<ref>{{cite web |url=https://startuptalky.com/apple-vs-microsoft-marketing-strategy/ |quote=Apple and Microsoft employed different marketing strategies, with Apple focusing on innovation and user experience, while Microsoft aimed to compete in the consumer market dominated by Apple and Google. }}</ref> Microsoft responded with the launch of Windows Phone 7, which received positive reviews for its innovative interface but struggled to gain market share.<ref>{{cite web |url=https://en.wikipedia.org/wiki/Windows_Phone_7 |quote=Windows Phone 7, launched in October 2010, was designed to replace Windows Mobile and Zune, targeting the consumer market but struggled against iOS and Android. }}</ref> Simultaneously, the industry was shifting towards cloud computing. Microsoft addressed this trend with the launch of Azure (originally Windows Azure) in 2010. Although a late entrant compared to Amazon Web Services (AWS), the company focused on customer-centric strategies to carve out a niche in the cloud market.<ref>{{cite web |url=https://www.datacamp.com/blog/aws-vs-azure |quote=Microsoft Azure, launched in 2010 as Windows Azure, emerged as a key player in cloud computing, competing with Amazon Web Services (AWS) and Google Cloud Platform. }}</ref> Regulatory challenges also persisted, with historical antitrust cases continuing to influence Microsoft’s operations. These combined pressures forced the company to adopt a dual strategy: defending its dominance in traditional software markets while aggressively pursuing opportunities in emerging technologies.
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