Posted by: Elle on: October 25, 2009
http://www.straitstimes.com/Breaking%2BNews/Tech%2Band%2BScience/Story/STIStory_445585.html
Microsoft who is well known for launching softwares for computers, is expanding their buisnesses by setting up retail stores (hardware). Bill Gates finally sees the need to establish a channel to display his products. It was mentioned in the news that he was out to win his rival, Apple Inc.
Complementary expansion is seen here as with the launch of Windows 7, the company decided to open stores to sell their products instead of depending on other retail stores for sales. It is definitely the best way as the profit earned goes directly to the company and not through unnecessary channels. I guessed it is a matter of time for Microsoft to proceed on with horizontal expansion where consumers can find retail stores in their countries. Of course, Bill Gates will consider the opportunity cost (priorities the highest) and the “public good” nature of the media products before expanding in the retail industry.
Indeed, Microsoft is very successful today which proved that they have achieved the vertical expansion of media products. Bill Gates is no doubt the monopoliser of the computer software industry which explains the billions of dollars he is earning every minute. Though Apple Inc emerged with macbook to counter his attack, the dominance of his product can be seen prominently with the expansion in the industry. Hence, in my opinion, Apple have to work harder in order to turn the tables over to their side.
With this post, i shall end the 7 weeks of communication blog entries. Thank you all who have commented! and my loyal reader too! =D
Ya. I totally agree with you. Being a loyal user of microsoft software, I feel that by having microsoft-themed stores, it can certainly encourage more to use microsoft products. ( Even though there are already MANY USERS OF MICROSOFT!) With the launching of windows 7, im sure that previous users of microsoft, who were disappointed with the current windows vista, will now switch to microsoft more readily thus giving microsoft more customers!
Apple is still unfortunately lagging far behind Microsoft. Why, it even have to use Microsoft office instead of coming up with its own new, ‘user-friendlier’ programmes.
In order for Apple to win, I believe it has to travel a different path than Microsoft. Standing up against the giant is not a wise decision. Apple needs to innovate, and not improvise.
I am a microsoft user! And i believe that almost everyone who owns a computer/laptop, has microsoft software inside their computer. I am not really a person into this kind of microsoft and apple stuff but i do agree that opening of stores to sell microsoft hardware will open up a bigger market for Microsoft products! ( I can see econs being applied!)
I think Apple is catching up with Microsoft! Just look at all the exclusive sought after products Apple is coming up with. Sure Microsoft still remains pretty dominant in the IT industry, but Microsoft is definitely feeling the heat from Apple as well. It is interesting to see how both companies use strategies to fight and try to overtake the other in terms of market share, and it is always good to have competition in the market, ensuring that no company gets lazy and that every company continues to strive to produce better, more efficient and user friendly products.
Hello!
From a consumer’s point of view, I don’t really care who will win as long as the products are practical and user-friendly. Both companies have positive and negative points so I tend to choose a software/hardware accordingly to my specific needs.
Microsoft is indeed an expanding giant with its value increasing in terms market shares. But, its market shares are only restricted to certain products as compared to Apple, which has a variety from MacBook to IPhone. Thus, it is quite hard to say who’s the winner as both companies have different tactics to gain their market power.
Hello! To provide another point of view, perhaps Microsoft and Apple cater to different groups of people. If you say Microsoft is sort of monopolizing the computer software industry, then the same can be said of Apple, which is then monopolizing the portable music player industry. Like Jun Ying said, it depends on the needs of different users. For example, why many musicians prefer using Macbook (an Apple product) as compared to a traditional laptop for their recording purposes is because the Macbook offers the Garageband application, in which users are able to record their own songs and blend them with different instruments.
this can only be beneficial for the consumers. now they can choose between 2 global brands. this is not unusual as microsoft has always been looking to expand its business to other sectors for example, the gaming and handphone sectors.
personally i use microsoft and ipod. i have no preference. obviously most ppl use windows os and apple ipods because these are what both companies excel in. no doubt it is good to expand but really, you must build your foundation well before you can expand. there is this saying :”learn to walk before you fly”. hence it is important for companies to remember their roots and in this case computers and mp3 players respectively.
maybe soon you would see apple doing animated movies and microsoft having its own mp3 player.
Hi Lini!
Actually I disagree with you that Bill Gates was using the complementary expansion, I thought it was more of a vertical expansion when he opened up his own Microsoft store instead of selling his software in retail stores, as this is part of the production chain. But complementary expansion was also used as Microsoft not only produces the main software for the majority of most computers in today’s world, Microsoft also produces products such as the Microsoft table (which uses the Microsoft software platform). In addition, there is a growing number of Apple computer users buying Microsoft software to use instead of Apple.
I’m personally a Microsoft fan!
I think it’s really hard to determine who wins! Both Microsoft and Apple have their group of followers (and for the Apple ones, they’re almost religious). So I would say both companies are successful in their expansion policies.
Moreover, I think they cater to different consumer groups. They are seemingly the same, yet have distinct preferences, similar to what Li Yin has mentioned.
do comment on mine too!
http://becauseimacommstudent.blogspot.com
Well, Im more of a microsoft user than an Apple user so i will definitly support MICRSOFT!!! However, as many have pointed out these 2 companies actually had different groups of supporters. Hence, it doesnt really who wins as ultimately we consumers are the ones who benefits.
apple vs microsoft is pretty much a straw man argument sometimes..
coz the two companies actually serve pretty different market segments.. have pretty much different strengths and weaknesses (as already mentioned by others)..
end of the day consumers pick either of the OS based on their preferences and needs.. and it doesn’t really matter “how” either companies sell them.. i think for the consumer.. as long as something’s good.. they will go through lengths to get it.. =)
I personally think that microsoft and Apple have different types of consumers. Most schools, households and offices uses microsoft while most consumer who work related to design field prefer Apple. Seeking innovation and improvement is a must to ensure survival in the market in todays competitive world and the fast pace of globalisation also contribute to this phenomenon( of improving). Hence the setting up of retail stores (hardware) is just another way where Microsoft tries to improve its sale so trying to out-win Apple is just second.
October 27, 2009 at 1:10 am
Bill Gates’s move to sell his products by setting up his very own retail stores is not new to Singapore very own millionaire, Mr. Sim Wong Hoo. Mr. Sim opens a few Creative stores, only to close them down later after finding out that the sales at his stores is not good. The main reason for the failure known to many is his very own fight for patents with Apple too. What is not known to many is that the failure of his stores is due to its inability to sell a wide range of products. Comparing to other stores like Challenger, Creative stores loses out on varieties. Shoppers tend to window shop Challenger more than Creative due to the fact that there are more varieties and easier comparisons. The chances that window shoppers become real shopper are higher and thus Challenger is current more successful than Creative in this area. Microsoft in my opinion may falls into the same shoe like Creative.
Microsoft battle with Apple will go on and on but Apple cannot wins no matter how they tried for now in the OS field. Microsoft monopoly is too strong. It has a big majority over Apple. As we can see, even with a failure in Windows Vista, Microsoft is able to survive through and come out with Windows 7 to revive itself. Apple very own operating system, Snow Leopard, may seems very good to many but its lack support from many software writers. This is the main reason for it ability to capture only a small but sustainable share of the market sales.
Creative also battle with Apple but Creative cannot match Apple even with its superior Sound Blaster Technology for MP3. This battle is well known and it is lucky Creative is still able to survive on. On the other hands, Apple survives through a few other battles too. The newest battle is the Nokia’s Patent claims on Apple’s iPhone. Nokia will likewise have only bites Apple a bit only in my opinion. Apple’s wide range of products is the main reason for its survival.
Now let comes back to the battle of Microsoft with Apple. Yes, Microsoft wins Apple but not in all areas. It wins in the fields like OS and PC. But it loses out in area like MP3 and HP. So there is no actual winner yet.