What were the business problems facing MHE? How did they relate to its existing older systems?

While there can be many problems in a business it seems though it is a declining market. It seems that MHE facing few problems in regards to competition from bigger companies while they reduce the prices. The market was becoming a commodity business focusing on sales of equipment and price which seems moderate for a business. However, while at its Margins were declining. MHE could not differentiate itself from competitors since its business so they decided to drop prices even further which is nothing but chaos. It is more like riding a bicycle with no feet.