Chapter 15 closing

case Overview

Microsoft in India

Question 1
-Whats wrong with the one size fits all strategy
and why does this not work in emerging markets?
hint: ( Microsoft is moving away from this one size
product strategy of the past to open doors into a
wider range of products, to effectively appeal a
larger variety of customers with different needs/
wants)
one size fits all means that there is limited
diversity in the types of products being produced.
Windows operating systems and Microsoft software
applications such as word and excel are all the
same across the global markets.

Answer:

-Majority of Indians do not have access to a

personal computer. In India only 25 computers per
1,000 ppl vs. USA 997 computers per 1,000 people.
This is because of cost.
-Pirated windows software and operating system
substitutes such as linux take market share
note: issues like these are what has driven
microsoft to develope diferent software products
that can compete in the Indian emerging market on
a price basis. They have invested in foreign
markets by employing research centers that will
address the local consumer demand more
accurately.

Question 1 continued..

How are emerging markets different than

developed markets?

Emerging markets are nations with social

and business activity that rapidly grows and
industrializes. The economies of China and
India are considered to be the largest
Developed Markets generally have slower
overall growth than emerging ones, and are
more fully industrialized with stable
economies.

Question 1 continued..
How do consumers differ in their
characteristics and how they use technology
within emerging and developed markets?

-Varying aspects of market conditions such as culture, economic

conditions, consumer purchasing power, competitive conditions
among other firms, product and technical standards, distribution
systems and government regulation are all parts of how potential
customers in a market behave.
-In India, people have become more adapted to use cell phones where
computers are preferred elsewhere in the world. Despite India's
booming IT industry, many people are still un able to afford Personal
Computers. Therefore cellphones have mingled into their place for
they can do many of the simple tasks as easily as computers.
-The difference among countries calls for adaptable marketing mixes.

Question 2
What steps did Microsoft undertake to develop
products that appealed better to Indian consumers?

Answer:
Microsoft used foreign direct investment to establish a software research
center in India. It purpose was to develop a software product that was
more appealing to Indian consumers, based on price competitiveness.
Microsoft in India developed Windows XP started edition. This version of
windows was able to compete with linux and pirated software because it
was priced lower therefore more economically viable for the majority of
people. Also it was offered in a wide range of Indian languages.
Microsoft developed a cloud infrastructure, where Indian consumers
(business and private) could pay cheap monthly subscriptions to other
Microsoft software applications.
Indian people use cellphones in place of computers, Microsoft identified
this as an area where they could develop cell phone specific software
apps that would better utilize the Consumer and provide revenue to the
company.

Question 3
How does Microsoft vary its marketing Mix?

Microsoft has done a good job addressing the

needs and wants of foreign markets in how it had
installed Research and Development centers that
create more appealing products to the local
market. It relates to the Idea of local production
for local consumption.
By developing a more attractive product and
making it cheaper for the Indian Consumers,
Microsoft has simply evolved its product and price
elements of the 4 ps. This ties back to the goal
of getting away from one size fits all because in
India an American size doesn't fit.

Question 4
What General lessons has Microsoft learned
with its experience in India?

My answer:
Microsoft learned that product variation is
essential for achieving Market Segmentation.
Microsoft considered price, interests, income
level, and computer availability as factors to
market segmentation. Microsoft ahd
recognized its potential for sales in India but
needed to consider its segmentation strategy
in order to fully reach the market.