Microsoft case study revised
- 1. Chapter 15 closing case Overview
- 3. Question 1 -Whats wrong with the “one size fits all strategy” and why does this not work in emerging markets? hint: ( Microsoft is moving away from this one size product strategy of the past to open doors into a wider range of products, to effectively appeal a larger variety of customers with different needs/ wants) “one size fits all” means that there is limited diversity in the types of products being produced. Windows operating systems and Microsoft software applications such as word and excel are all the same across the global markets.
- 4. Answer: -Majority of Indians do not have access to a personal computer. In India only 25 computers per 1,000 ppl vs. USA 997 computers per 1,000 people. This is because of cost. -Pirated windows software and operating system substitutes such as linux take market share note: issues like these are what has driven microsoft to develope diferent software products that can compete in the Indian emerging market on a price basis. They have invested in foreign markets by employing research centers that will address the local consumer demand more accurately.
- 5. Question 1 continued.. How are emerging markets different than developed markets?
- 6. Emerging markets are nations with social and business activity that rapidly grows and industrializes. The economies of China and India are considered to be the largest Developed Markets generally have slower overall growth than emerging ones, and are more fully industrialized with stable economies.
- 7. Question 1 continued.. How do consumers differ in their characteristics and how they use technology within emerging and developed markets?
- 8. -Varying aspects of market conditions such as culture, economic conditions, consumer purchasing power, competitive conditions among other firms, product and technical standards, distribution systems and government regulation are all parts of how potential customers in a market behave. -In India, people have become more adapted to use cell phones where computers are preferred elsewhere in the world. Despite India's booming IT industry, many people are still un able to afford Personal Computers. Therefore cellphones have mingled into their place for they can do many of the simple tasks as easily as computers. -The difference among countries calls for adaptable marketing mixes.
- 9. Question 2 What steps did Microsoft undertake to develop products that appealed better to Indian consumers?
- 10. Answer: Microsoft used foreign direct investment to establish a software research center in India. It purpose was to develop a software product that was more appealing to Indian consumers, based on price competitiveness. Microsoft in India developed Windows XP started edition. This version of windows was able to compete with linux and pirated software because it was priced lower therefore more economically viable for the majority of people. Also it was offered in a wide range of Indian languages. Microsoft developed a cloud infrastructure, where Indian consumers (business and private) could pay cheap monthly subscriptions to other Microsoft software applications. Indian people use cellphones in place of computers, Microsoft identified this as an area where they could develop cell phone specific software apps that would better utilize the Consumer and provide revenue to the company.
- 11. Question 3 How does Microsoft vary its marketing Mix?
- 12. Microsoft has done a good job addressing the needs and wants of foreign markets in how it had installed Research and Development centers that create more appealing products to the local market. It relates to the Idea of local production for local consumption. By developing a more attractive product and making it cheaper for the Indian Consumers, Microsoft has simply evolved its product and price elements of the 4 p’s. This ties back to the goal of getting away from “one size fits all” because in India an American size doesn't fit.
- 13. Question 4 What General lessons has Microsoft learned with its experience in India?
- 14. My answer: Microsoft learned that product variation is essential for achieving Market Segmentation. Microsoft considered price, interests, income level, and computer availability as factors to market segmentation. Microsoft ahd recognized its potential for sales in India but needed to consider its segmentation strategy in order to fully reach the market.