Econ344
-
Upload
jason-li -
Category
Technology
-
view
329 -
download
0
description
Transcript of Econ344
About Microsoft
• Created in 1975 by Paul Allen and Bill Gates
• Two main products:
• Other products:
Microsoft’s Current CEO
Steve Ballmer
5W 1H
• Who – Microsoft• What – Falling behind its competitors• When – January of 2000• Where – Worldwide• Why – Leadership that is afraid to take risk• How – Innovative projects are being rejected
The P’s of Marketing
• Product – Windows Operating System• Price – Upgrades start from $130, Full versions
start from $230• Promotion – Not much promotion needed as it
comes standard with all PCs; “I’m a PC and Windows 7 was my idea” commercials
• Place – Downloaded online, purchased in stores, pre-installed
BCG Matrix
The 5 C’s of Pricing
• Customers- Customers are very elastic to prices. If set too high, they will get hardware & software through other means.
• Costs- High initial cost to develop. Low cost to produce.• Competition- Practically monopolizing in PC operating
system.• Channel Members- Relatively consistent between
channels, with some special pricing. • Company Objectives- Lowering prices and therefore
cutting profit margins ; Offering versions of Office for free to compete with Google's Clouding applications suite
Porter’s Five Forces
1. Threat of New Entrants• Windows is the standard operating system in PCs• Customer Loyalty to Microsoft• Global brand name recognition• Development costs
2. Power of Suppliers• Not much due to Microsoft monopoly• No substitutes for PC manufacturers• Included in every out-of-the-box PC sold
Porter’s Five Forces (cont.)
3. Power of Buyers• Not much due to Microsoft’s monopoly on the PC• More buyers = less purchasing power per person
4. Availability of Substitutes• Not many comparable products• Mac OS (Inconvenient to completely change the
computer hardware)• Linux (Not user friendly and does not come
preloaded)
Porter’s Five Forces (cont.)
5. Competitive Rivalry• Computer O.S:
- Windows vs Mac OS vs Linux• Smartphone O.S:
- Windows Phone 7 v iOS(Apple) vs Android (Google)• Web Browsers:
- Internet Explorer vs Firefox vs Chrome• Game Consoles:
- Xbox 360 vs Sony PS3 vs Nintendo Wii
SWOT Analysis
Strengths:• Pioneers of the computer industry• Global name recognition and strong reputation• One of the most established IT brands in the world• Diverse market of products
Weaknesses:• Lack of recent innovation• Bad public perception• Software compatibility issues• Bugs and no open source
SWOT Analysis
Opportunities:• Demand for PCs remains strong• Increasing market of computer users• Smartphone market with Windows Phone 7• Game design, development, publishing, and production
of game consoles
Threats:• Apple and Linux• Rapid development of mobile devices replacing PCs• Software piracy• Open source software
Market Size, Market Penetration, and Market Share
85.01%
6.40% 4.38%1.38% 1.07% 1.75%
Operating System for Computers February, 2012
Windows
Mac
iOS
Android
Linux
Other
Month Windows Mac iOS Android Linux Other
April, 2011 88.91% 5.40% 2.24% 0.66% 0.94% 1.85%August, 2011 86.58% 5.62% 3.38% 1.02% 1.00% 2.41%October, 2011 86.49% 6.54% 3.40% 1.04% 1.12% 1.41%
February, 2012 85.01% 6.40% 4.38% 1.38% 1.07% 1.75%
• Courier
• Kin
• IE
• XBox
• Zune
• Bing
• Skype
75.68%
11.95%
5.92%4.24% 0.51% 1.70%
February, 2012
Google - Global
Baidu
Yahoo - Global
Bing
Ask - Global
Other
• In both the Mobile OS market and the Mobile Maker market; Microsoft’s attempt’s in Market Pentration have been failures
• Microsoft released the Kin in April 2010.• The phones were stylish• at a minimum cost of $70 a month D• Device aimed at
– It didn't have instant messaging– it couldn't play YouTube videos– users couldn't buy online games.
• Only 48 days after the Kin hit stores, Microsoft discontinued the sales• Spent 1-2 billion on R&D into the Kin
Consumer Reaction
• "There's no chance that the iPhone is going to get any significant market share“
• Courier was never launched• Zune was a commercial failure
discontinued Oct 2011• Kin: discontinued just 48 days after
launch
• Xbox• Skype• MS Word• MS Windows