microsoft- tablet PC
Case Analysis
1) Who should Microsoft have targeted at the launch of the Tablet PC & why?
Before discussing who Microsoft should have targeted, we have to look at the strengths and weaknesses of the product. The success of any strategy depends on being able leverage the most of the strengths and rely less on the weaknesses. The strengths of Microsoft were its brand, distribution channel, existing enterprise user base and large resources. The risks involved those related to new product development, price and changing user behavior. The exhibit tells us that the large and medium business accounted for the most portable PCs in terms of volume and revenue. Due to the enterprise refresh cycles, a third of the PCs are replaced every year. Now let’s take a look at the options Microsoft had as target initial customers. They could target first time PC buyers, enterprise IT managers, students, early tech adopters or existing Windows customers. Looking at the strengths and weaknesses listed above it is easy to eliminate a few of the choices provided. Microsoft should have targeted the enterprise user base. Enterprise devices are much less sensitive to price as regular customers and have a higher willingness to pay. Thus the high price tag might not have been a difficult barrier if the product delivered value. They demand compatibility with existing enterprise frameworks. Given Microsoft’s dominance in enterprise software, they could easily ensure that the tablet PC has software that was compatible with Microsoft’s existing enterprise software. The iPad was very geared towards the consumer segment. Thus there was a niche in the enterprise tablet space that Microsoft should have exploited. This would have also helped in terms of narrowing down the focus on a few key applications, distributors and use cases. Taking a leaf out of Blackberry’s book they could have made enterprise security as one of their key differentiators especially given the wide adoption of outlook email
1) Who should Microsoft have targeted at the launch of the Tablet PC & why?
Before discussing who Microsoft should have targeted, we have to look at the strengths and weaknesses of the product. The success of any strategy depends on being able leverage the most of the strengths and rely less on the weaknesses. The strengths of Microsoft were its brand, distribution channel, existing enterprise user base and large resources. The risks involved those related to new product development, price and changing user behavior. The exhibit tells us that the large and medium business accounted for the most portable PCs in terms of volume and revenue. Due to the enterprise refresh cycles, a third of the PCs are replaced every year. Now let’s take a look at the options Microsoft had as target initial customers. They could target first time PC buyers, enterprise IT managers, students, early tech adopters or existing Windows customers. Looking at the strengths and weaknesses listed above it is easy to eliminate a few of the choices provided. Microsoft should have targeted the enterprise user base. Enterprise devices are much less sensitive to price as regular customers and have a higher willingness to pay. Thus the high price tag might not have been a difficult barrier if the product delivered value. They demand compatibility with existing enterprise frameworks. Given Microsoft’s dominance in enterprise software, they could easily ensure that the tablet PC has software that was compatible with Microsoft’s existing enterprise software. The iPad was very geared towards the consumer segment. Thus there was a niche in the enterprise tablet space that Microsoft should have exploited. This would have also helped in terms of narrowing down the focus on a few key applications, distributors and use cases. Taking a leaf out of Blackberry’s book they could have made enterprise security as one of their key differentiators especially given the wide adoption of outlook email