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In this video tutorial, the presenter demonstrates how to compress a Microsoft Word document to reduce file size for faster loading times, easier sharing, and optimized storage space. The original Word file is 11.1 MB in size, containing text and images. To decrease the file size, select a picture, go to the Picture Format tab, and click on the compress pictures icon. Ensure "apply only to this picture" is unchecked and "delete cropped areas of these pictures" is checked. Choose Default Resolution and save the compressed pictures. Finally, go to File, then More, and then Options to access advanced settings.