Topic Selection Microsoft recently unveiled its prototype, Surface, their version of a tablet or alternative device to a personal computer. It is questionable how Microsoft, a known software company, will be able to manufacture and sell a tablet device that is a contender in the marketplace against devices such as the iPad. Thesis: It is critical that Microsoft produce a device that overcomes the limitations of its competitors and adds features that set it apart, in order to define itself in the tablet market.
Background Information Microsoft CEO Steve Ballmer unveiled the company’s new tablet Surface, at a press event in Hollywood last week.
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"Microsoft sees that Apple is world-class in what they do. Microsoft has little choice but to do what they must" to make sure someone has world-class hardware in the Windows camp. (Ray, 2012)
Microsoft has not had a competitor for the iPad since Apple released the original version in 2010. Windows 8, which is to be available to consumers this fall, has been the company 's hope to compete against Apple 's dominance in the tablet market. Apple sold 3 million of its new iPad’s in the first three days after its launch (Stern, 2012).
Along with determination, innovation, and advantages is the recognition that Microsoft can do some very stupid and self-defeating things. But the company has been in the tablet space for decades. In fact, you could argue that one reason Apple knew what would work is because Microsoft did so much of the advance work to eliminate what wouldn 't. It may finally have gotten many of the mistakes out of its collective system (Sherman, 2012). Ballmer said the company took its time with the tablets, working quietly on its new machines to work out all the details. “We took the time to get Windows 8 and Surface right," he said (Stern, 2012).
The company still faces big odds. Competing with itsown hardware partners could prove sticky, at best. (Sherman, 2012) Sherlund
Following the emergence of e-readers, new entrants offered variations similar to the Kindle Fire (Exhibit 1). Apple’s iPad was a major success and dominated the tablet market for its multipurpose and feature rich device. Both Amazon and Apple had
Apple's iPad has revolutionized tablet computers in many ways. Ipad3 is the latest version released by Apple on March 16, 2012 and is sleek and faster than its predecessors. While other manufacturers are struggling with innovation in the tablet computer section, Apple seems to handle it with relative ease and this is one of the main reasons for its presence as a market leader in this segment.
Microsoft has their dominance of the industry at stake. They could potentially come out on top if left to continue their current tactics. They are masterfully “marketing their products” and it is paying off for them (Love, 1997).
They have expand their business from only on computer software and hardware to online search engine, home gaming devices and smartphone, those business are the popular business in the world, Microsoft is trying to adapt the new market.
“Microsoft aspires to be a great company, and our success depends on you. It depends on people who innovate and are committed to growing our business responsibly. People who dedicate themselves to really satisfying customers, helping partners, and improving the communities in which we do business. People who are accountable for achieving big, bold goals with unwavering integrity. People who are leaders, who appreciate that to be truly great, we must continually strive to do better ourselves and help others improve.”
Microsoft’s approach of creating competition also increases both the variety and the availability of their PCs. PCs can be found almost anywhere that sells other electronics. Each PC manufacturer produces their own configurations. Each retailer sells at least a few exclusive PCs. The end result is many different PC options for the consumer.
Last month, Microsoft unveiled the Microsoft Surface 2. The product is targeting users who prefer to use their tablet for work purposes over leisure with built in Microsoft software, high storage and durable battery. The emphasis that the Microsoft Surface 2 is a “tool not a toy” provides a clear idea that Microsoft is targeting professionals who are interested in productivity. For now, we will just have to wait and see if Microsoft’segmentation strategy proves to be successful over the upcoming year.
Another competitive strategy that could be considered would be increasing the target audience. Microsoft has consent to make a bold play for the workplace while leaving the school market open for Apple. The idea was that if adults were using Microsoft OS at work all day, then they would be more likely to purchase the OS for their home PC. This was a good strategy in the beginning but may need to be changed for future sales. Microsoft will have major competition with Apple over the next five years because schools of all levels are expected to switch from computers to iPads. This may possibly hurt Microsoft’s future sales because as the students enter the real world they will continue to depend on Apple for their future computer needs (Hughes, 2011).
Viewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible Personal Computer (PC) operating systems is extremely large and stable. Second, Microsoft's dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsoft's customers lack a commercially viable alternative to Windows, the operating system of all PC's.
One company that appears to have a gap between its mission and its capabilities is Microsoft. The software giant has long had a problem with respect to innovation, and continues to rely on aging franchises for the bulk of its revenue. It was left out of the mobile operating systems boom and has failed to be a leader in either software or consumer electronics as a result (Clarke, 2010).
Windows” (“Microsoft: Court’s…). Microsoft implies that there still is competition; such as Mac OS, Linux, and other operating systems. Though this claim may have support, the “District Court found that Windows accounts for a greater than
Surface is by Microsoft, and its operating systems is Windows 8.1. It came out on June 2014. IPad is by Apple, and its operating systems is iOS 7. It came out on November 2013. With Windows 8.1 pro, you can run start screen and also Windows Store, so you can apps. In Windows Store, you can get any old Windows desktop apps. For iPad, iOS 7 is same as in iPod or iPhone. If you buy Surface, it only comes with Wi-Fi. Unlike Surface, iPad come with Wi-Fi +LTE models as well. LTE is short for long term Evolution. LTE is able to Provide significantly faster data rates for both uploading and downloading. With Surface, you can get 64 GB, 128 GB 256 GB or 512 GB. With iPad, you can
Microsoft is a highly diversified company. Its technologically-related products span from software to music players to game consoles to web browsers to search engines to phones. However, its flagship product, the product which has been the primary driver of its profits has been Microsoft Windows, the ubiquitous operating system that runs on virtually every computer in the world. Windows has been deemed so critical that even Microsoft's competitor Apple was effectively forced by market pressures to allow its Macs to run Windows, in an effort to boost sales. "As astounding as Apple's success has been, it hasn't put a dent in the Microsoft Office monopoly. [Current CEO] Ballmer and company still profit on every Macbook running Word, Excel and PowerPoint" (Greg 2012).But while Microsoft continues to make its highly profitable Windows products (despite industry criticism about its user features); it has struggled to diversify in its many critical areas, most notable in its music, phones, and Internet service.
Keen on addressing these issues, the company’s management had to react fast, and this is how the birth of windows 8 surfaced. One main impact this change had management, is coping with competition from the established mobile app developers: android from Google and apple. Commanding a considerable market share was a daunting task for management. Statistics from the industry show that, android, the leading mobile app provider, releases between 10,000 and 140,000 new apps every month. Windows 8 released only 200, 000 apps in the first year of its operation which is far below the trendsetters, android. Windows 8 was also built to support only Microsoft specific apps, which made rolling out the change a more complex undertaking to management. To deal with these change demands, the company’s management, embarked in restructuring the organisation in order to incorporate they change demands (Rash, 2013). This began with reorganising the employees into new structures, which meant new duties and responsibilities.
Microsoft has been fighting competitors in the Operating System fields as well as the Search field for many years. After Apple launched its new Macintosh computer, Microsoft came out with its first production of Windows which had a graphic user interface. Microsoft had 95% of all OS on individual PC’s in the 2000’s where apple only had about 2%-3% (Rivkin 2). A new venture that Microsoft was working toward was application software where the produced Microsoft Word and Excel. At first these two applications where not very popular on PC computers because WordPerfect and Lotus 1-2-3 where the main applications being run. Microsoft’s solution to this competition was