Yes, I think that through some innovation and unique marketing that Microsoft can stay competitive in the marketplace. Major competitors to Microsoft such as Apple and Gateway have come out with new products that have innovated the market and sparked the interest of consumers, and I think that Microsoft can also think of new products.
I believe that Microsoft can stay competitive, because I think they can use their resources to get into almost any technological field. They may need to expand the markets and industries that they compete in (I'm not sure if the tablet market will work out for them), but they should be OK in the long-run.
I believe that Microsoft will be able to stay competitive. First of all, there are many people who do not like Apple computers and will continue to purchase PC's and their software. Also, the new Microsoft tablet is able to do things like Microsoft Excel, which is a very useful tool to have on a mobile device.
Microsoft continues to provide business solutions that will keep them competitive. Sky Drive, One Note and the newer Microsoft 365 are some examples. Each of these programs allow businesses to securely store and collaborate on the cloud. In an office situation this means a paper document left at your desk at work can now be also available from any interent connected device. I think if Microsoft continues to take the new technology such as cloud storage and online collaboration as a cue to innovation and designing new products they will stay on the cutting edge. Their name will always be respected.
Android is a powerful OS that is making the linux kernel accessible in America. What most people don't understand is that Linux is the dominant OS of choice for desktops outside the US. Furthermore, Linux already dominates the server market. This generation of programmers have more experience with non Microsoft programming environments. With yet another flop in windows 8, budgets becoming tighter in the consumer market, and the Linux catching on I don't see a bright future for Microsoft unless they make some major changes in company policy. For instance, going open source.
Microsoft is still merely holding on because of the premiums they charge for their operating system. They have not come out with anything groundbreaking or innovative in a long time. Bing is secondary to Google, and even shows results more likely to create an infection. Internet Explorer is a joke. Windows 8 was a huge flop. The windows phones are actually kind of neat, but they came out with that idea about 4 years too late. They lack any innovation, and are holding on by the Windows operating system. I hate to say it since I am a Windows man. Heck, I am even going to buy an ultra-book this summer because of the price difference. However, I might buy the Dell edition that comes with Linux so that I can get away from Windows 8. Further, they are going to alienate a large number of their loyal Microsoft Office users when they start to charge a monthly fee for Office. Yes. A reoccurring charge for a word processor. You know, that thing that has been around for decades--word processors. Well now you can pay $100 a year just to have it, excel and powerpoint. Or you can download Linux for free and get a great word processor, spreadsheet and presentation program for free. They are in the stone age, and they aren't going to get out unless they start getting innovative like Google. Instead of trying to find ways to raise the prices of the products they have which are all very slight modifications of the programs they gave us in 1998.