Microsoft Software Microsoft Software Case Study Case Study

By Buddy LandryBy Buddy Landry

E-MarketingE-Marketing

December 15, 2006December 15, 2006

Company OverviewCompany Overview

Microsoft is a company located in Microsoft is a company located in Redmond Washington which a developer Redmond Washington which a developer of desktop and enterprise software and of desktop and enterprise software and services including server platforms, server services including server platforms, server applications, developer tools and custom applications, developer tools and custom design services. (Microsoft Corp, B&CRC)design services. (Microsoft Corp, B&CRC)

Description of the Market SegmentDescription of the Market Segment

The industry Microsoft is involved in is the The industry Microsoft is involved in is the prepackaged software industry which is prepackaged software industry which is estimated at $200 billion. estimated at $200 billion.

There are two separate groups in There are two separate groups in packaged software: application software, packaged software: application software, and system infrastructure software, which and system infrastructure software, which includes operating system software, includes operating system software, system utilities, and program compilers.system utilities, and program compilers.

Piracy plagues the industryPiracy plagues the industry

Prepackaged software was easy for the Prepackaged software was easy for the unethical and remained a major issue in the unethical and remained a major issue in the 2000s. Piracy has cost producers billions of 2000s. Piracy has cost producers billions of dollars in lost revenues from the mass dollars in lost revenues from the mass production of illegal copies. production of illegal copies.

The Software Publishers Association estimated The Software Publishers Association estimated that half of all business applications installed in that half of all business applications installed in the late 1990s were pirated copies. The losses the late 1990s were pirated copies. The losses were pegged at 29 billion in 2003 according to were pegged at 29 billion in 2003 according to the Business Software Alliance(BSA)the Business Software Alliance(BSA)

Relative Placement within the Relative Placement within the IndustryIndustry

Microsoft is number one in the Operating Microsoft is number one in the Operating Systems Market as of 2003 with 55.10 Systems Market as of 2003 with 55.10 percent market share with Linux at 23.10 percent market share with Linux at 23.10 percent in second place.percent in second place.

Microsoft is only at 14 percent in the Microsoft is only at 14 percent in the application development market as of application development market as of 2002. 2002.

Microsoft’s Expression WebMicrosoft’s Expression Web

Expression Suite is going to be the successor of Expression Suite is going to be the successor of Microsoft FrontPage. Frontpage was seen as a fairly Microsoft FrontPage. Frontpage was seen as a fairly basic web editing tool but Expression has taken a basic web editing tool but Expression has taken a serious leap in functionality and capability to the point serious leap in functionality and capability to the point where it is a serious competitor to Adobe’s where it is a serious competitor to Adobe’s Dreamweaver. Dreamweaver. Microsoft Expression web has drag and drop ASP.Net Microsoft Expression web has drag and drop ASP.Net 2.0 components. Expression Web also provides CSS 2.0 components. Expression Web also provides CSS browsing tools to browse through styles to see what it browsing tools to browse through styles to see what it will look like before applying it. will look like before applying it. XML can be used as a database which is useful for XML can be used as a database which is useful for quick application testing. quick application testing.

Microsoft’s Expression MediaMicrosoft’s Expression Media

Expression media is an alternative product Expression media is an alternative product Microsoft has developed to Macromedia’s Flash Microsoft has developed to Macromedia’s Flash product. product.

This product was impressive because of the This product was impressive because of the Extensible Application Markup Language Extensible Application Markup Language combining XML and application development combining XML and application development together instead of separately. together instead of separately.

The product supports vector graphics and video The product supports vector graphics and video which Microsoft believe is ahead of the which Microsoft believe is ahead of the competition. competition.

CompetitionCompetition

The chief competitors in XML and software development The chief competitors in XML and software development technologies are Sun Microsystems, technologies are Sun Microsystems, Adobe/Macromedia, and Apple Computer. Adobe/Macromedia, and Apple Computer. Microsoft wants to capitalize on web development by Microsoft wants to capitalize on web development by creating its own web development tools in order to creating its own web development tools in order to compete with Adobe.compete with Adobe.Microsoft got involved by creating an XML parser it Microsoft got involved by creating an XML parser it named XML core services. However customers were named XML core services. However customers were dissapointed when they found it was only available to dissapointed when they found it was only available to businesses who subscribed under the volume licensing businesses who subscribed under the volume licensing program and not available to other customers. (XML, program and not available to other customers. (XML, B&CRC 7)B&CRC 7)The XML parser also had to be updated in order to fix The XML parser also had to be updated in order to fix errors in it later. errors in it later.

Marketing Challenges faced by Marketing Challenges faced by CompanyCompany

One challenge the company will face is trying to One challenge the company will face is trying to brand Microsoft as a web development company brand Microsoft as a web development company when its claim to success has been the when its claim to success has been the Windows operating system. Windows operating system. Macromedia and Adobe are established Macromedia and Adobe are established companies and have gained the public trust as companies and have gained the public trust as industry standard software suites. industry standard software suites. Microsoft will have to provide all of the services Microsoft will have to provide all of the services that are in these suites already such as HTML, that are in these suites already such as HTML, XML, Javascript, ASP, and PHP if they want to XML, Javascript, ASP, and PHP if they want to compete as well as extra features to differentiate compete as well as extra features to differentiate themselves from Adobe. themselves from Adobe.

Response to Market ChallengesResponse to Market Challenges

The strategy the company is using seems The strategy the company is using seems flawed. It is possible for their products to flawed. It is possible for their products to sell but the software it sells is equivalent to sell but the software it sells is equivalent to the competition and there is no mention of the competition and there is no mention of differentiating features. Customers will be differentiating features. Customers will be inclined to buy the industry standard rather inclined to buy the industry standard rather than to risk a software suite with a than to risk a software suite with a potential for flaws and nagging updates. potential for flaws and nagging updates.

Technologies EmployedTechnologies Employed

The technologies Microsoft will employ in The technologies Microsoft will employ in their new line of software, Expression Web their new line of software, Expression Web will be dragging and dropping of Javascript will be dragging and dropping of Javascript and ASP components. They will also and ASP components. They will also employ XML in the application design of employ XML in the application design of Expression Media together. Expression Media together. From the article’s standpoint, it looks like From the article’s standpoint, it looks like an advanced Frontpage program for an advanced Frontpage program for internet programming. internet programming.

Determination of Relative SuccessDetermination of Relative Success

Microsoft has not had success in the past when Microsoft has not had success in the past when developing software. There have been code and security developing software. There have been code and security problems where the company has had to issue patches problems where the company has had to issue patches in order to provide a fix to customers after they bought in order to provide a fix to customers after they bought their software.their software.Quality is not important to Microsoft which relies on its Quality is not important to Microsoft which relies on its name to make a sale instead of reputation. name to make a sale instead of reputation. Adobe and Macromedia has had much success in Adobe and Macromedia has had much success in gaining web development customers who rely on their gaining web development customers who rely on their software to be effective and secure. software to be effective and secure. I don’t predict users will give up using Dreamweaver and I don’t predict users will give up using Dreamweaver and Flash to trust Microsoft’s new Vista and Expression Flash to trust Microsoft’s new Vista and Expression Software unless the company can provide quality and fix Software unless the company can provide quality and fix their problematic software. their problematic software.

Correlation of response with the Correlation of response with the marketing model employedmarketing model employed

Companies will favor the product because it Companies will favor the product because it increases productivity and enhances the increases productivity and enhances the learning curve of employees. learning curve of employees.

Howard said “It is unclear how willing people will Howard said “It is unclear how willing people will be to shift allegiances from those entrpreneurial be to shift allegiances from those entrpreneurial tools, but initial feedback from professionals has tools, but initial feedback from professionals has been very positive.”been very positive.”

Both Flash and WPF/E require JavaScript as a Both Flash and WPF/E require JavaScript as a bridge to embed a media object which will still bridge to embed a media object which will still give Microsoft competition. give Microsoft competition.

Value Bubble ComponentsValue Bubble Components

1. Attract1. Attract

2. Engage2. Engage

3. Retain3. Retain

4. Learn4. Learn

5. Relate5. Relate

Technologies used with each Technologies used with each ComponentComponent

1. Attract1. AttractMicrosoft is trying to attract potential Microsoft is trying to attract potential customers by giving them an alternative to customers by giving them an alternative to the other Adobe studio suites and giving the other Adobe studio suites and giving them another choice.them another choice.Microsoft uses XML, drag and drop Microsoft uses XML, drag and drop components, vector graphics and video to components, vector graphics and video to try and get ahead of the competition to try and get ahead of the competition to attract customers.. attract customers..

Engage phaseEngage phase

Microsoft has developed a product that Microsoft has developed a product that combines stages of work together to combines stages of work together to improve company productivity rather than improve company productivity rather than separating application development and separating application development and XML. XML. If it means more productivity, companies If it means more productivity, companies will buy it to get things done faster. will buy it to get things done faster. They want to reduce the learning curve so They want to reduce the learning curve so employees can get more things done. employees can get more things done.

Retain phaseRetain phase

With failed past application design, Microsoft has With failed past application design, Microsoft has already lost customers to trust their products. already lost customers to trust their products. People don’t like programs that have viruses, People don’t like programs that have viruses, patches, and updates. patches, and updates. The Macromedia Studio suite provides the same The Macromedia Studio suite provides the same functions as Expression Web and more functions as Expression Web and more possibilities for languages with secure software. possibilities for languages with secure software. Customers have established trust with Adobe Customers have established trust with Adobe and Microsoft will have a difficult time to retain and Microsoft will have a difficult time to retain customers although businesses will pay for customers although businesses will pay for easier application development. easier application development.

Learning phaseLearning phase

Microsoft has learned what their customers want Microsoft has learned what their customers want from them as a company and this is why they from them as a company and this is why they developed their software to take care of multiple developed their software to take care of multiple aspects of web development. If Microsoft aspects of web development. If Microsoft continues strengthening relationships with their continues strengthening relationships with their customers they can develop great products. customers they can develop great products. However Expression Web can be expanded However Expression Web can be expanded from what they have developed now. The from what they have developed now. The WYSIWYG and drag and drop features can WYSIWYG and drag and drop features can include programming tutorials and tool tips to include programming tutorials and tool tips to instruct developers and this could lead to a instruct developers and this could lead to a revolutionary education tool. revolutionary education tool.

Relate phaseRelate phase

Microsoft did not pursue the web Microsoft did not pursue the web development industry earlier so it is development industry earlier so it is difficult to relate with them now that Adobe difficult to relate with them now that Adobe has done that already. has done that already. Because the Expression Web Suite is a Because the Expression Web Suite is a new product they will have to gain new product they will have to gain feedback from these new customers in feedback from these new customers in order to relate to them and they have a order to relate to them and they have a website established to do it. website established to do it.

Identify missed opportunitiesIdentify missed opportunities

When they designed Microsoft XP and the software When they designed Microsoft XP and the software accompanying this product, they should have worked accompanying this product, they should have worked harder at ensuring the quality before they released it harder at ensuring the quality before they released it instead of providing patches and updates later in order to instead of providing patches and updates later in order to gain the customer’s trust. gain the customer’s trust. It is late for Microsoft to design and sell web It is late for Microsoft to design and sell web development tools when Adobe and Macromedia has development tools when Adobe and Macromedia has already provided quality standards. Microsoft should already provided quality standards. Microsoft should have developed these tools earlier and they would have have developed these tools earlier and they would have had a better chance to compete with Adobe. had a better chance to compete with Adobe. Macromedia has already branded itself as a successful Macromedia has already branded itself as a successful web development company. web development company.

Identify failed implementationsIdentify failed implementations

Microsoft’s Expression Web would be more Microsoft’s Expression Web would be more appealing to current developers if it did not limit appealing to current developers if it did not limit their potential. their potential.

Users have to use the product on Windows Users have to use the product on Windows machines except Expression Media. Mac users machines except Expression Media. Mac users like the creative possibilities on Mac and might like the creative possibilities on Mac and might buy it if it could be included on their machines. buy it if it could be included on their machines.

Microsoft could have sold it as a cross platform Microsoft could have sold it as a cross platform product and they will lose Mac customers. product and they will lose Mac customers.

Discuss how the Customerization Discuss how the Customerization model may not benefit company.model may not benefit company.The customerization model does not fit well for this company. Web The customerization model does not fit well for this company. Web developers want creative freedom. Microsoft develops generic developers want creative freedom. Microsoft develops generic software the way they want to and when the customer buys it, it is software the way they want to and when the customer buys it, it is up to them to download patches or buy upgrades to achieve what up to them to download patches or buy upgrades to achieve what they want. they want.

Microsoft has the philosophy of WYSIWYG. They design Microsoft has the philosophy of WYSIWYG. They design them generic so they can mass produce it more them generic so they can mass produce it more efficiently. efficiently. Because Microsoft has developed generic software in Because Microsoft has developed generic software in the past, customers have stopped taking them seriously the past, customers have stopped taking them seriously and have moved on to other programs such as and have moved on to other programs such as photoshop. Their generic and flawed software and OS photoshop. Their generic and flawed software and OS has cost the company a potential customer base in has cost the company a potential customer base in creating and selling software.creating and selling software.

ConclusionConclusion

Expression Web looks to be the easy way out for Expression Web looks to be the easy way out for programmers. Dragging and dropping Javascript and programmers. Dragging and dropping Javascript and ASP components allows them to ignore coding DOM ASP components allows them to ignore coding DOM completely. It is designed for novice developers. There is completely. It is designed for novice developers. There is a code view but dragging and dropping does not teach a code view but dragging and dropping does not teach programming. It is visual programming. programming. It is visual programming. The technique works but students would appreciate the The technique works but students would appreciate the Document Object Model if they code it out themselves.Document Object Model if they code it out themselves.Expression Web also does not provide a way to use non Expression Web also does not provide a way to use non Microsoft development languages such as PHP and JSP Microsoft development languages such as PHP and JSP and it runs only on Vista. It limits potential for web and it runs only on Vista. It limits potential for web developers. They will have to eventually buy another developers. They will have to eventually buy another suite if they want to learn JSP and PHP later such as suite if they want to learn JSP and PHP later such as Komodo or Dreamweaver. Komodo or Dreamweaver.

List of Thought Provoking List of Thought Provoking QuestionsQuestions

1. Which segment do you think Microsoft is 1. Which segment do you think Microsoft is hoping to gain?hoping to gain?

2. Adobe/Macromedia suites have already 2. Adobe/Macromedia suites have already differentiated themselves from the competition differentiated themselves from the competition as industry standard software suites. How can a as industry standard software suites. How can a company with a flawed reputation erode those company with a flawed reputation erode those successful brands?successful brands?

3. Do you think Microsoft should use another 3. Do you think Microsoft should use another brand identity to sell their new products instead brand identity to sell their new products instead of risking their established brand as a successful of risking their established brand as a successful operating system manufacturer?operating system manufacturer?

Questions continuedQuestions continued

4. Are WYSIWYG tools a good way to 4. Are WYSIWYG tools a good way to educate new programmers or does it spoil educate new programmers or does it spoil them on developing the easy way?them on developing the easy way?

5. Are patches and updates a quick fix for 5. Are patches and updates a quick fix for programmers who should have been programmers who should have been responsible for completing the program?responsible for completing the program?

6. Does limiting software to one platform 6. Does limiting software to one platform turn customers away or encourage them turn customers away or encourage them to stay with their OS?to stay with their OS?