Zune Case Study

1934 Words8 Pages
The core problem is a lack of overall innovation from Microsoft in entering the digital music
Player market. Their core strategy of providing this device as a networking tool only appealed to 11% of the target market. Their use of innovation around the integration of wireless technology was not taking advantage of a key component, connecting to the internet to download additional media. The lack of innovation was also depicted by their proprietary use of the media that was compatible with the devices. You could only purchase music from the Zune Store, alienating partners such as Napster who standardized on the Microsoft
PlaysForSure standard. There was also a lack of innovation in its marketing launch and
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Pro 's:The real buying power has to reside in the 35-65 population. Imagine

being able to market to this group of professionals, who have a higher discretionary spending ability that you will convert their, sometimes significant investment in their CD library to a portable device in an easy and quick fashion. By not allowing them to do this,
Apple and other MP3 only devices have forced consumers to repurchase their music.
Therefore, by appealing to the TCO aspect of the initial investment made by the consumers it could be a huge new market and access point for Microsoft. Perhaps not as sexy as the young and hip market that Apple controls, but it 's market share after all and Microsoft needs to recognize that this particular market is already very saturated, so they need to innovate in their feature/function and marketing techniques, which requires a revamp of their core mission.

Cons: If the integration of a CD library is not easy to use, the target market

would quickly reject the brand. This has to be a plug and play technique.

1. Apple has a very dominant foothold on the market. Apple has dominated the market

not only with marketing and brand acceptance, enjoying a $20B+ annual sales business, but

can also claim over 100M customers. Everyone else is so far behind, where Apple enjoys 65%-

80% of the market, everyone else is

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