Quick Thought on Microsoft’s Retail Strategy

Sat, Feb 14, 2009


One point lost in the discussion about Microsoft’s recent decision to enter the retail market is how exactly they’re going to make any money. Even assuming that crowds swarm to these stores, how can Microsoft make money selling Dell and HP computers? Again, when you own 90+ percent of the computer market, the best you can really hope for is to maintain that lead. I suppose Microsoft can showcase the Xbox, but that’s hardly enough to warrant entering the cut-throat world of retail.  Unless Microsoft has some new hardware and compelling software in the pipeline, I fail to see why anyone at Microsoft thought this was a good idea.

Ok, ranting done! On a lighter note, check out this hilarious list from PC World listing the top 10 ways that Microsoft’s retail stores will differ from Apple’s. I thought these two were the best:

2) The store will have six different entrances: Starter, Basic, Premium, Professional, Enterprise, and Ultimate. While all six doors will lead into the same store, the Ultimate door requires a fee of $100 for no apparent reason.

6) Stores will be named Microsoft Live Retail Store with PC Services for Digital Lifestyle Enthusiasts.


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