I used to work at Microsoft from 1996 to 2006. Here is a pattern that I've seen, which explains so much of the problem with Balmer.

The strategy in 1990's was that software was sold in stored (EggHead). People would compare the BULLETs or CHECKMARKS on two competing packages. Microsoft's goal was to always have more and better checkmarks. That sold more software in the 1990's.

Notice their newest re-org. They are making two big pushes DEVICES and SERVICES. The entire company is becoming "functional" (devs vs testers vs program managers, etc.). They all report to Balmer. Balmer is trying to be like Steve Jobs.

Balmer talked about having "efforts" selected by him and execs in his office. Those would be the major efforts of products. This is the same as picking FEATURE BULLETS for the back of packaged software.

Microsoft does NOT have a strategy. They focus on packing feature bullets, like it is a box of software. Watch them do that with XBox ONE, Windows Phone, Windows 8, etc. Until they pick a strategy, they won't find a way to use leverage to pull ahead.