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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 optimizing storage space. They start with an 11.1 MB Word file containing text and images. To reduce the file size, they select a picture, go to the Picture Format tab, click on the Compress Pictures icon, and adjust compression options. They ensure "Apply only to this picture" is unchecked and "Delete cropped areas of these pictures" is checked, then select "Use Default Resolution" and click OK. The next step is to save pictures at lower resolutions by going to File, More, Options, and Advance in the left panel.