Analysis

College students represented the next generation users

of operating systems
They were tech savvy and wanted to try competitive
applications.
Microsoft is seen as ageing, less reliable and unable to
reinvent itself.
Students use Microsoft for official work like
presentations and paper submissions, Google for
research and email and Facebook for Networking.
Microsoft is trying to enter all three markets at once and
not being competent at any of them.

Solution
Microsoft must focus on their core competency which is
their operating system.
They can make the operating system free and provide
regular updates to it but charge for Microsoft office on
licensing basis.
This way they can consolidate their operating system
market which in turn provide a market for Microsoft
office.