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The case is set during the leadership transition phase of Microsoft, the world's largest software company. On 15 June 2006, Microsoft announced that, with effect from 27 June 2008, Gates will transition out of a day-to-day role in the company to spend more time with the Bill & Melinda Gates Foundation. The two-year transition process was to ensure that there was a smooth and orderly transfer of Gates' responsibilities. During that phase, the company faced several issues like Vista's unimpressive launch, the company's failed endeavour to purchase Yahoo and increasing rivalry with Google in the Internet search business. The main focus of the case is succession planning. It highlights how Gates had groomed his colleague Ballmer, to tackle those challenges after his exit. He also developed a strong technical team that would continue the company's research and innovation in the future.