Well there is only so much you can make it smaller. Compression utilities do various things. You can eliminate most of the redundancy in the file to make it smaller. However, to go further than that, you will have to sacrifice detail. Various "compression" algorithms do this.
Winzip and Winrar offer lossless compression, but if you want to make it smaller you have to use a form of compression that results in the loss of some detail.
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