MARKETING
MICROSOFT CORPORATION THE INTRODUCTION OF MICROSOFT WORKS
Industry Structure/Product Market Definition
Dominated by few players. Major players :Lotus, Microsoft, Ashton-Tate. Microsoft the market leader. Emphasis on International sales Establish standard worldwide product with minor changes to accommodate differences in localized versions of product. Customers mainly consist of corporate buyers
Market Segmentation
1. Segmenting by Computer Hardware Environment Primary hardware target (IBM-PC) or PCcompatible. AT-compatible and PS 2. Segmenting by Usage Situation Business/Professional Home/Hobby Scientific/Technical Education
Market Segmentation
Segmenting by Customers depth and clarity of needs Breadth Customer Depth Customer
3.
4. Segmenting by Country and Language Different number of bits for alphabets of different language Difference in hardware. Price sensitivity
Analysis of Trends & Changes
1. Increased investment in research and
development over the years IBM PC and XT sales forecasted to decrease in US market but to remain same in rest of world for next two years. 2. Globalization to Localization an increasing trend in industry. 3. Early entrant substantial advantage over latecomers. 4. Software copyright protection
Opportunity for MS Work
1. Forecasted revenue for US market is $1.63 million and rest of world is $0.5 million. 2. Works is needed because of Lotuss growing dominance in integrated software in rest of world. 3. Diversification in product portfolio
Microsoft Product Portfolio
Microsoft has following products: 1. System Software including operating system : Microsoft Disk Operating System (MS-DOS) 2. Application products like Multiplan ,Excel, Word targeted at depth users to support at least one function specialization 3. Product like Works for breadth users who need combination of all functions
Decision Related to Works
1. Design modification Introduction of toggle functionality Conversion of work file to Multiplan file format 2. Price fixing in different countries due to factors quality, distribution channels. 3. Microsoft Works launch date in US 4. Branding and marketing the product in different countries
Dealing with Demands of Count Managers
1. Country managers insist to introduce toggle switch and multiple file format convertor. 2. These modification will delay launch by two months in market. Loss of opportunity cost. Hostility by retailers in introducing new product in peak season (NovemberDecember) Possibility of loss of market leadership
Proposed Solution
1. Microsoft should not add additional programs
for Works file and launch it in US in September. 2. After its launch it should release in US with multi plan file format conversion. 3. After its launch it should release in other countries with toggle switch feature. 4. While positioning it should differentiate Works with existing Multiplan and Words product of Microsoft to prevent cannibalization.
