Reports: Microsoft's Brand Taking A Beating

Two surveys in recent weeks have cast Microsoft's once mighty brand in a disparaging light. First, in its ranking of the top 100 business brands, market research firm CoreBrand reported that Microsoft's 'brand power' rating dropped 21 points from 2006 to 2007, and a whopping 48 points from 2004 to 2007.

The CoreBrand survey was based on phone interviews with senior executives from the top 20 percent of U.S. businesses in 40 key industries, and its 'brand power' metric is a melange of brand familiarity, management reputation, and investment potential metrics.

In a recent survey by BrandChannel.com, Microsoft was the most frequently mentioned brand in response to the question, "Which brand do you want to argue with?" One respondent offered the following explanation for their vote: "[Microsoft is] so widespread and we all use their products, yet they are such frustrating products to use. Very little innovation for the size of the company."

Microsoft was also the most often mentioned brand in response to the question "If you could rebrand any brand, what brand would it be?" with one voter saying, "[Microsoft has] gone from innovative and bold to stodgy and a follower. But rebranding is only one step since it really needs a major shift in how it thinks."

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These polls may be unscientific, but it's highly possible that entrenched beliefs about Microsoft that have persisted over the years, particularly the meme about Microsoft being a follower instead of an innovator, have begun to calcify into negative sentiment.

In addition, Microsoft's handling of Windows Vista, from the Vista Capable debacle, to the numerous technical issues with the OS that have plagued both consumers and the channel, could also have contributed to voters' negative perceptions of the company.

But Neil Pearlstein, president of PC Professional, an Oakland, Calif.-based Microsoft Gold Partner, insists that the Microsoft brand is stronger than ever.

"When you're the 'big boy' on the block, everyone is watching out for you. I think that having some brand deflation is typical of a corporation such as Microsoft, which has grown so large that people tend to focus on the negatives rather than the positives," said Pearlstein.