Can Microsoft do what no other business has done? New Microsoft stores are opening soon
Microsoft will be opening new retail stores in an effort to turn its operating system and PC business into a more user-friendly, experience driven purchase. Microsoft isn’t the first to try this but can it out-do the competition?
Microsoft is really taking a step out of its comfort zone in an effort to sell its operating systems. Vista never really caught on with PC users and Microsoft has already burnt through $1 Billion to better market its products to the user. It’s features and backend processes came well before their time and the hardware wasn’t at all keeping up with the software. Most users found that Vista required 4 times as much RAM than the previous Windows product XP.
Microsoft is taking itself down a road that few companies have done successfully.
The problem I see with Microsoft’s huge expansion is that their operating systems simply sell themselves. Microsoft’s core is the business user, their products are cheap and effective and have one of the most featured office suites. To date 90% of all computers sold use one of Microsoft’s operating systems. Unlike Apple, Windows operating systems can be purchased OEM and sold by computer makers which obviously expands their market tremendously.
I wonder what Microsoft’s ultimate goal might be. As of now Microsoft is planning the release of its new operating system Windows 7. So far details are thin though the beta version of the software has already been released.
The Netbook market is taking a toll
Netbooks are beginning to hit Microsoft’s profit margins after the company agreed to sell Windows XP at a subsidized price to netbook producers. Microsoft’s core business is selling operating systems and software; they can’t go back with a new product on the way.
Netbook users are seeking value, not portability. The cheapest Windows XP netbooks begin at a price of $299 with many online discounters often pushing prices as low as $269. For most users netbooks are a perfect alternative to full size laptops. The screen size difference and slim keyboard isn’t reason enough to spend a little more. Value added based on marketing is a tough sell in recession, consumers get back down to the basics when slowdowns hit.
Windows 7 is a way to move users away from XP
History shows that after Windows releases a new operating system it drops support for the now third oldest operating system to support the new software. It all comes down to compatibility and the instant success of the operating system. The community makes the product but it’s customers are cost oriented and not “community” oriented. Windows 7 needs a “killer app” or huge benefit unavailable on XP products and only time will tell if Microsoft can get it right this time around.
