Purpose
The purpose of this assessment is to undertake marketing analysis of Windows 8, a computer operating system of Microsoft. In marketing analysis, the assessment will examine the market of computer operating systems with a view of positioning Windows 8. Since the computer operating systems are in the competitive markets where technology is very dynamic, Windows 8 is experiencing stiff competition from its rivals. In this view, the purposes of the marketing analysis are to perform macro trend analysis, analyze competitive forces in the market using five forces of competition, according to Porter’s model, and ultimately provide recommendations about how Microsoft can overcome competitive forces and gain significant market share.
Company Background
Microsoft is the company that produces Windows 8 and distributes it to millions of computer users across the world. In 1975, Bill Gates and Paul Allen came up with a primitive computer operating system and subsequently upgraded it to current Windows 8, which is the most advanced computer operating system in the modern world of technology.
When it commenced, Microsoft specialized in computer operating system, however, with time, it started to diversify into other software such as Microsoft Office, Internet Explorer, Skype technologies, and Windows for mobile phones. In this view, the company owns products such as Microsoft Office, Internet Explorer, Windows Phone Operating System, and Microsoft Surface in addition to Window 8. Hence, from the growth and development progress of Microsoft, it is evident that its products have been gradually penetrating global market and attracting an increasing number of computer users.
Although the headquarters of Microsoft is in Redmond, Washington, it has spread across the world because it provides versatile operating systems, which people have employed in various facets such as education, business, agriculture, research, and communication. The arrival of the Internet has significantly boosted the application of software that Microsoft produces in the aforementioned facets.
The evolution of Microsoft across the decades has been responsive to the needs of customers and the advancement of technology. In satisfying customer needs, Microsoft provides diverse programs that increase the efficiency of performing operations in industries, offices, and communication. Regarding technological advancement, Microsoft has adapted its Windows to various devices such as computers, phones, iPad, and tablets. Currently, Microsoft is a leading company in the software industry because virtually all computers are compatible with Windows.
The mission, vision, and strategies that Microsoft holds form the basis of its status in the global markets. Microsoft (2014) indicates that, “our mission is to enable people and businesses throughout the world to realize their full potential” (para. 2). In this view, people can achieve their potential through Microsoft because it offers versatile and accessible programs that promote the use of computers in the modern world.
In line with the mission, the vision of Microsoft is to develop innovative products that increase accessibility and eliminate barriers that hinder people from using computers optimally. The overall strategy of Microsoft is to augment the accessibility of computers to diverse people, irrespective of their mental and physical abilities. Therefore, mission, vision, and strategies that Microsoft employs in the development of operating system are inclusive and considerate to the needs of the disabled people.
Background of Brand
The notable brand of Microsoft is Windows 8 because it is the current and trendy operating system. The emergence of Windows was a sequential process, which commenced in 1970s and has currently continued to improve. At the formative stages, Bill Gates and Paul Allen invented a primitive program, which allowed them to process and transfer information from one computer to another. During 1980s, Bill Gates and Paul Allen came up with Microsoft Disk Operating System (MS-DOS), which has formed the foundation of modern operating system.
The invention of MS-DOS did pave the way for massive growth and development of Microsoft from being a national company to becoming an international company. Refinement of MS-DOS eventually led to the development of Windows, which has evolved consecutively and improved its application. At the beginning of the 21st century, Microsoft launched a series of Windows operating systems such as Windows Vista, Windows 7, and the current Windows 8. Thus, the development of various forms of Windows has given Microsoft an upper hand in the competitive market as customers have a variety of products to choose and use.
Microsoft launched Windows 8 into the markets on 25 October 2012 and consequently penetrated into the global markets effectively. Despite the presence of previous operating systems, Windows 8 gained exponential growth in the competitive markets. In the realm of operating systems, Windows 8 has become the most notable and trendy product of Microsoft since it is an advanced operating system. According to Thurrott and Rivera (2012), Windows 8 has additional features that improve security and efficiency of programs in a computer, and thus, it is very important in running innovative programs. Moreover, the user interface of Windows 8 is very friendly because users can easily navigate and undertake complex operations using simple shortcuts or clicks.
Safety and security features make Windows 8 an attractive operating system when compared to the previous versions of Windows. In the aspect of accessibility, Windows 8 allows users to create and use personal identification numbers and/or picture passwords. Windows 8 also has Windows Defender, which acts as antivirus and protects the operating system from the viruses, malwares, and spyware. To enhance its functionality, Windows 8 has smartscreen filter, which is essential in touchscreen devices.
Regarding family safety, Windows 8 allows parents to restrict the usage of computers by children and monitor the various activities that they perform whenever they are using them. The feature of family safety is integral in protecting children from untoward abuse by cyberbullies. Given that Windows 8 experiences problems that lead to the loss of important information, Windows 8 provides a Unified Extensive Firmware Interface, which allows users to boot their devices in a secure mode and recover information. Hence, the presence of enhanced safety and security features implies that Windows 8 protects its users from abuse, loss of information, and any form of damage.
In a bid to improve its services, Microsoft integrated Windows 8 with an online platform, where users can create accounts and log in. The creation of account allows users to access important information about the use of Windows 8, troubleshoot problems, and synchronize programs. As an important program that aids in storage of files, Microsoft provides its customers with SkyDrive Cloud Storage in the online account that they have created.
In browsing, Windows 8 has Internet Explorer 10 and optimized Adobe Flash Player, which are integral in accessing the Internet and watching videos. Since Windows 8 is very versatile, it incorporates features of mobile broadband in that it recognizes subscriber identity module (SIM) card and detects mobile networks and wireless networks. To avoid causing interference, Windows 8 has an airplane mode feature that users can adjust whenever they are in a plane.
Given that Windows 8 requires additional applications to function optimally, Microsoft has created Windows Store Apps, where users can obtain compatible programs effectively and in a safe manner. The existence of Windows Store Apps has alleviated the hustle that users normally undergo when looking for safe and compatible programs that run on Windows platform.
The Windows Runtime is versatile as it allows programs made using programming codes such as JavaScript, C#, C++, C, HTML5, and Visual Basic.NET. When users download compatible application into their computers, they can arrange them in a user-friendly manner to meet their required tastes and preferences. Hence, Windows Store Apps have made Windows 8 to be a unique operating system when compared to the previous versions of Windows and other operating systems.
The user interface of Windows 8 is unique because it provides an interface where a user can view all programs in a single window. The user interface resembles that of touchscreen devices and tablet computers. In its design of interface, Windows 8 applies Metro Design language, which gives the computer interface like that of Windows phone. Essentially, the interface eases the navigation of users when accessing diverse programs and functions.
Compare with windows 7, the interface of Windows 8 removed start button and created a start screen, where users can customize the nature of applications that they frequently utilize. In addition to start screen, Windows 8 has a screen that hosts all the applications that are present in it. Hence, Windows 8 is an advanced system that has unique features that make it stand out among other operating systems.
Macro Trend Analysis
Macro trend analysis is an integral aspect of marketing analysis because it describes the existence of diverse forces in a marketing environment. Essentially, macro trend analysis examines external forces that affect an organization. Allen (2012) identifies six macro-environmental factors, namely, “political, economic, sociocultural, technological, ecological, and legislative environments” as important external forces that determine the growth and development of organizations in competitive markets (p. 51).
Marketers utilize these macro-environmental factors in assessing whether markets are favorable or unfavorable. In this view, macro trend analysis uncovers external forces that influence the sale of product in a market, and thus, forms the basis of making evidence-based decisions regarding marketing strategies that companies need to employ to market their products. Therefore, to undertake macro trend analysis of Windows 8, the assessment examines technological, sociocultural, economic, political, legislative, and natural environments.
Technological Environment
In the modern era, where technology has become an integral aspect of any human activity, technology has become indispensable. Technology has become the main force that drives the development of innovative devices and programs that operate machines and perform certain activities of interest. Asaolu (2006) describes technology as human invention that has transformed cultures, activities, professions, knowledge, and humanity because it is virtually applicable in all facets of life in the modern world.
In essence, technology has become an indispensable aspect of human life and daily activities. As technology is very dynamic, software developers continue to come up with innovative operating systems that are specific to the functions that they run. Hence, technological environment is a significant external force that influences the use of Windows 8 as a computer operating system.
Since Windows 8 is a new technology of operating system, its relevance in the modern society is subject to many forces that are in the realm of technology. One of the technological forces that are influencing the use operating systems in the current world is the Internet. Without the Internet, computer users would not be able to utilize Windows 8 effectively as designed. Windows 8 requires users to create an online account and access Windows Store Apps, troubleshoot problems, and update the operating system to function optimally. Moreover, the nature of the Internet determines the functionality of Windows 8 because it requires a high-speed Internet. Evidently, the market of Windows 8 is subject to the presence of the Internet. Thus, Windows 8 will not function efficiently unless the Internet is available to optimize its functionalities.
Given that technological devices evolve with time, they influence the use of Windows 8. The emergence of technological devices like tablets, iPads, smartphones, laptops, and desktops, which have increased random access memory, high speed, and large hard disk memory have influenced the change of operating systems from 32-bit systems to 64-bit systems.
The evolution of Windows across the decades has been in response to the increasing capacity of hardware of various devices to handle complex operating systems and allow multitasking. Sinchak (2013) states that Windows 8 allocates random access memory appropriately and allows programs to run effectively. Although Windows 8 runs optimally on 64-bit system, the design of hardware determines if a system can accommodate 64-bit system or 32-bit system. Thus, the technological nature of the hardware influences the use of Windows 8 in various computers.
Sociocultural Environment
Sociocultural environment has marked influence on the use of Windows 8 in the modern world. The most influential aspect of the sociocultural environment is the demographic variables of the population. As technology advances with time, young people are technologically more suave than the old people are. Gasser and Palfrey (2013) assert that there is a digital gap, which differentiates the young people and the old people in the population.
The existence of the digital gap in the population is an important parameter that influences the use of Windows 8. Moreover, Dixon et al. (2014) has established that there is a gendered gap in the use of technology as men have more knowledge than women do. Given that Windows 8 is barely two years in the market, it implies that people are already adapted to other previous Windows.
Essentially, the application of Windows 8 requires users to acquire additional skills and acclimatize to its unique features. Hence, given that the young people are technologically more suave than the old people are, they are likely to use Windows 8. In this view, the penetration of Windows 8 into the market is dependent on the willingness of the young people to adopt and use it as an operating system on their computers. Additionally, the application of Windows 8 is subject to the gendered gap that exists in the use of information technology.
In the aspect of attitudes, Windows 8 is user friendly and adaptable to various aspects of human activities. Given that computers have become indispensable devices in learning institutions, attitudes of students, lecturers, and instructors support the use of computer programs that aid in processing huge volumes of information or retrieving information from libraries and databases. According to Gasser and Palfrey (2013), the information communication technology has transformed the manner in which modern learners collect and process information.
The existence of the Internet has necessitated the development of software that can store and retrieve information from it. In this case, Windows 8 is an operating system that provides a framework where computer users can incorporate other software that aid in the storage and retrieval of data. In learning institutions, the Internet is a major source of information, and thus, learners have a positive attitude towards the use of information communication technology. Therefore, Windows 8 enjoys positive attitudes that are present among learners, instructors, and lecturers in diverse learning institutions.
Since computer operating systems are dominant in various companies, they have formed the basis of many careers. Computer scientists, programmers, website developers, and mathematicians amongst other professionals rely on computer operating systems when undertaking diverse activities. According to Microsoft (2014), series of Windows provides solutions to human problems in various professions because it enhances accuracy of performing certain functions. As computers have dominated all facets of life, it has become imperative to train professionals, who will aid in the application of several computer programs. Thus, the emergence of Windows 8 meets an already establish professionals, who has the capacity to utilize and maintain it.
Economic Environment
Economic environment has a considerable influence on the penetration of Windows 8 because it is an expensive software. Williams and Martinez (2012) holds that international companies are susceptible to global economy because economic crises have marked impact on their returns. Given that Microsoft is an international company, it is subject to global economic forces. Financial economic crises that the world experiences periodically are likely to have marked influence on the penetration of Windows 8 on global markets.
Stable global economy has positive impact on the sale of Windows 8 because it promotes purchasing power of potential customers, while unstable global economy has negative impacts as it reduces the purchasing power of potential customers. Normally, international companies like Microsoft are prone to the negative impacts of global economic recession because they are dependent on stock markets, which are subject to numerous forces. In this case, extensive nature of the target market of Windows 8 predisposes it to many economic forces that emanate from diverse countries. Hence, global economy is an integral factor that determines the successful penetration of Windows 8 into global markets and expansion of its market share.
Evidently, target market of Windows 8 is extensive and varies from one country to another. Boorman (2010) asserts that economic status of a country is a significant factor that determines the ability of citizens to purchase product from multinational companies. In the developed countries, the purchasing power of customers is high because they have substantial resources that they can use in procuring computer programs like Windows 8.
On the contrary, the developing countries have low purchasing power because they do not have enough resources to empower their citizens. As a consequent, a significant number of people in the developing countries are unable or not willing to purchase expensive programs like Windows 8. In essence, the target market of the developed countries is larger than that of the developing countries. The economic status of a nation, therefore, depicts the purchasing power of customers and their potential to purchase Windows 8.
Historically, Microsoft products have dominated the markets because they are very competitive and unique. The introduction of Windows 8 in 2012 has penetrated the market successfully and millions of users are already in the market (Microsoft, 2014). Projections show that Microsoft is going to be the leading company that provides computer operating system for a couple of decades unless its competitors come up with innovative computer operating systems that surpass Windows.
Given the innovativeness and advancement of Windows 8, it is likely that Microsoft will experience an increased demand for its products in the global markets. In this view, it implies that the limiting factor in the production and maintenance of Windows 8 would be finances. Thus, economic status of Microsoft would determine the extent in which Windows 8 will penetrate the global markets and meet interests of customers. Essentially, Microsoft requires a great deal of capital to launch its global infrastructure aimed at enhancing the experience of Windows 8.
Political Environment
Political environment influence the adoption and use of Windows 8 in various jurisdictions. Given that the use computer technology varies from one nation to another, political factors have contributed to the variation. Modern learning institutions are the primary users of information communication technology, and thus, they determine technological advancement of a country. However, since political environment dictate the development of learning institutions, it influences acquisition of information communication technology.
For example, in nations where education system is at the formative stages of development or deprived owing to the lack of political will to support, it implies that learners and professionals will not utilize technology. The use of computers require massive infrastructure of the Internet so that learning institutions can adopt information communication technology. According to Gasser and Palfrey (2013), the Internet is a major driver of information communication technology because the acquisition of computers relies on its availability. Moreover, learning institutions also require massive information, which they can only obtain via the Internet.
Infrastructural development plays a central in the use of computers and its related products such as software. The Internet network and electricity supply are in integral components of infrastructure that computers require in a given nation. Given that the existence of such infrastructural utilities is dependent on political will, it means that Windows 8 is subject to the same conditions.
Sinchak (2013) asserts that Microsoft produced Windows 8 with the aim of upgrading its previous Windows to keep in tandem with previous versions of Windows. For Windows 8 to penetrate into new markets, which are predominantly in the developing countries, the absence of infrastructure would hinder it. Governments under the rule of politicians permit companies that deal with information communication technology to provide the Internet infrastructure. Moreover, governments also support the generation of electricity from various sources such as nuclear, water, solar, and wind.
Political environment also influences economic progress of a country because politicians formulate economic policies. The existence of economic policies that favor economic growth and development promotes acquisition of computers and adoption of information communication technology. Since Windows 8 is a powerful and dominant computer operating system, computer users in countries that have strong political will that root for the technological advancement would definitely acquire and use it.
However, some countries have restricted the use of information communication technology because ruling regimes have fears that it contributes to the occurrence of intolerance, revolution, and coup (Dick, 2012). Revolutions that happened in Libya and Tunisia emanated from the use of technology. Asian countries such as Japan and China have restricted the use of the Internet because they are apprehensive about its repercussions. Therefore, it is quite evident that political environment influences economic activities of a nation and consequently affects penetration of Windows 8.
Regulatory Environment
Software piracy is a major obstacle that Microsoft is facing as it tries to get optimum proceeds from the sale of its software. The obstacle emerges because intellectual property rights vary from one country to another. Software piracy deprives the owners of software profits because pirates duplicate software and use with the objective of avoiding to purchase. The extent of software piracy varies across the world because some countries have stringent intellectual property rights while other countries have flexible intellectual property rights.
Nill and Shultz (2013) report that the rate of software piracy in Vietnam, China, and Indonesia is about 90%, while the rate in the United States is about 21%. These statistics indicates that Microsoft should expect incidences of piracy for Windows 8 to vary in different countries depending on their legislations that support intellectual property rights. The existence of legal structures and institutions, which support anti-piracy, significantly reduce the rates of software piracy in diverse legal jurisdictions (Goel & Nelson, 2009). Thus, software piracy makes Microsoft to lose billions of dollars in global markets, and thus, limits the market share of the company.
The nature of laws that govern tax policies and trade restrictions determines the extent in which a product penetrates certain market, particularly the global markets. Different countries have formulated their tax policies and trade restrictions in line with their economic conditions. The developing countries, which normally form competitive markets globally, have tax policies and trade restrictions that hinder multinational companies from penetrating into their markets. Merrill and Raduchel (2013) assert that countries, which impose strict conditions on imported products, tend to ignore intellectual property rights. In this view, Microsoft has to comply with the stringent tax policies and trade restrictions in some countries for it to penetrate into their markets.
The advancement of information communication technology in modern world has led to the emergence of cybercrimes. Essentially, cybercrimes involves the use of information communication technology in committing diverse forms of crimes. The growth of information communication technology has prompted governments to formulate legislations that aid in curbing cybercrimes.
Windows 8 needs to comply with diverse legislations, which vary from one country to another. Fundamentally, Windows 8 should support the detection of devices using Internet Protocol address for it to aid in tracking cybercriminals. Windows 8 has updated its security features to protect users from cybercriminals, malware, and spyware amongst other threats (Thurrott & Rivera, 2012). Fundamentally, security features of Windows 8 make it the safest operating system.
Natural Environment
Since Windows 8 is a software, it has no detrimental effects on the environment. However, because it runs in devices such as computers, it contributes to the pollution of environment by electronic wastes, which are harmful to ecosystems and humanity. According to Pinto (2008), electronic wastes are harmful to environment and humanity for they contain toxic elements and radioactive compounds. To protect environment and humanity from harmful electronic wastes, Microsoft needs to support computer companies in disposing wastes in an appropriate way.
Analysis of Competition Using Porter’s Five Forces
Competition is a common phenomenon that companies experience as they market their products in their target markets. The forces of competition that are prevalent in any market have considerable impact on the ability of companies to penetrate competitive markets and increase their market share. Therefore, market analysis of Windows 8 using Porter’s five attributes, namely, competition, the threat posed to new entrants, bargaining power of suppliers (market of inputs) , bargaining power of buyers (market of outputs) , and threat posed by substitute products would provide accurate attractiveness of the market of computer operating systems.
Rivalry among Competitors
Windows is an operating system of Microsoft, which is dominant in the global markets despite the existence of competition. Windows 8, the current version of Windows, is facing competition from other operating systems such as Mac and Linux, which are in the global markets. As the competitor of Windows 8, Mac is an operating system made and distributed by Apple. According to Mudiraj (2013), Mac is an operating system that integrates effectively with hardware and offers the quickest and the smoothest interaction with users. In contrast, Linux is a free operating system that users can obtain and use without violating intellectual property rights, unless they manipulate it for gains.
Comparative analysis of the operating systems creates a competitive profile that places Windows 8 at a competitive situation. When compared to Windows 8, the strengths of Mac are that it has a unique graphic user interface, performs operations in the quickest and smoothest manner, and provides multitasking capabilities. However, its weaknesses are that is it the most expensive operating system and its hardware is specific to Mac, and thus, compelling customers to purchase both computer and Mac at the same time (Mudiraj, 2013).
Comparatively, the strengths of Linux are that the operating system is free in that anybody can obtain and use, runs servers continuously, has inbuilt antivirus, and offers the best security. However, the weakness of Linux is that it has a poor graphic user interface, which makes it unattractive and unfriendly to users. Therefore, from the competitive profile, it is evident that Windows 8 strengths are that it allows multitasking, has attractive and friendly graphic user interface, compatible with all computers, and has security features. However, the weaknesses are that it requires antivirus and is expensive when compared to free Linux,
Threat of New Entrants
Analysis of the current global markets indicates that new entrants do not pose significant threats to the incumbents. Sharma, Kumar, and Sharma (2011) state that Windows enjoys 90% of the market share leaving Linux and Mac to share the remaining 10%. As Windows dominate the market, it implies that Windows 8 is gradually increasing its market share by converting customers of other versions of Windows.
Hence, new entrants pose a negligible threat because Windows 8 enjoys massive customer loyalty established by the previous versions of Windows. New entrants are likely to experience great challenges in building a customer base and creating loyalty from scratch. Moreover, capital requirement is prohibitive in that new entrants have to spend billions of dollars before they launch their product in the market. Thus, it is very hard for new entrants to penetrate into the markets because of massive customer loyalty and prohibitive cost of capital.
Bargaining Power of Suppliers
The main bargaining power of suppliers is human resources, which fluctuate according to the economic conditions and employment rates. Microsoft has no ability to control the labor market because it is subject to the economic conditions and employment rates. Sinchak (2013) states that Microsoft relies on software developers in producing operating systems, supporting software, and maintaining them to ensure that they function effectively among users.
Therefore, when economic conditions are poor and labor market becomes expensive, bargaining power of employees goes high. To lower the cost of labor and improve quality of Windows 8, Microsoft can import cheap labor from the developing countries quite easily by outsourcing virtual employees since it is easy to import labor without relocating employees.
The supply of computers is another bargaining power of suppliers that Windows 8 experiences. Rapid technological advancement in all countries across the world requires computers from different companies such as Hewlett Packard, Dell, Lenovo, Acer, and Toshiba amongst others. Owing to increased demand for computers in the global markets, suppliers may increase the prices to reap optimum profits. To lower the costs and improve quality in the event that computer prices go up, Microsoft needs to make an agreement with suppliers so that they permit it to purchase at subsidized prices for Windows 8 is a complementary product of computers (Asaolu, 2006).
The Internet is also a bargaining power of suppliers that Windows 8 experiences, as Microsoft requires servers to store the operating system so that customers purchase, obtain a license, get updates, and request for repairs through the Internet. When Internet providers augment prices, the cost of distributing and maintaining Windows 8 will shoot up. In this view, Microsoft needs to liaise with the Internet providers and agree on the cost of using the Internet over a long period like five years.
Bargaining Power of Buyers
In the market of outputs, Microsoft relies on distributors, which are mainly computer companies, to distribute Windows 8. While some computer companies purchase Windows 8 and install on their computers to attract customers, others just manufacture hardware only. To supply Windows 8 to end customers, Microsoft then uses software distributors.
As the challenges of supply chain, computer companies and software distributors can increase the prices, and thus, inhibit customers from purchasing Windows 8. Mudiraj (2013) recommends that to control market prices, Microsoft needs to sell Windows 8 at subsidized prices, eliminate intermediary suppliers by selling through the Internet, and offer fixed retail prices to avoid exploitation of end-users. Hence, computer companies, software distributors, and online stores are some of the factors that influence pricing of Windows 8, and thus, affect the purchasing power of customers.
Threat of Substitute Products
Substitute products such as smartphones, tablets, free operating system, and pirated software provide alternatives for customers prefer them in instances where Windows 8 becomes expensive. The strengths of smartphones and tablets are that they have free and open-source operating systems. According to Dahiya, Pahal, and Saroha (2014), operating systems of mobile phones are free and open-source in that anyone can obtain and manipulate without violating intellectual property rights.
However, the weakness is that smartphones and tablets are small and have low capacity in terms of the magnitude of speed, random access memory, and disk space. Moreover, customers can opt for Linux, which is not only free, but also an open-source operating system. The strengths of Linux are that customers can obtain it freely and manipulate it to meet their needs. However, the weaknesses are that Linux lacks effective support system, the user interface is poor, and lacks appropriate office tools.
High prices of operating systems can also make customers to prefer alternatives such as pirated operating system. Nill and Shultz (2013) argue that high rates of piracy in countries such as China, Vietnam, and Indonesia occur because customers are unable to purchase operating systems. The strengths of a pirated software are that customers can easily obtain it in the market at cheap prices and install it without seeking permission. However, the weaknesses are that it can easily crash, has no updates, and violates intellectual property rights. Overall, smartphones, tablets, free operating systems, and pirated operating systems comprise the threat of substitute products.
Recommendations
Marketing analysis of Windows 8, the current product of Microsoft, indicates that additional marketing efforts are necessary. Hence, recommendations cover the four aspects of marketing, namely, product, price, promotion, and placement.
Product
Since the market is competitive and subject to many forces, Microsoft needs to improve a number of features in Windows 8. Firstly, Microsoft needs to improve the security features of Windows to surpass that of Linux, which is very high and secure. Secondly, Microsoft needs to enhance its antipiracy features to reduce the rates of piracy, which are common in certain countries, and thus, save the company massive losses that they incur. Thirdly, Microsoft needs to provide real-time support so that customers can troubleshoot problems that they often experience as they use Windows 8.
Price
Pricing of Windows 8 according to the economic status of a country is necessary to enhance its market share. The price of Windows 8 in the developed and the developing countries should be different because they have unique purchasing capacities. To enable customers with low purchasing power, Microsoft needs to decrease the price for Windows 8, which is currently stagnating at $200 (Microsoft, 2014). Reduction of price will also reduce rates of piracy, minimize competition that Windows 8 experiences from free software such as Linux, and overcome the threat of substitute products.
Promotion
As a new product of Microsoft, Windows 8 requires extensive promotion so that customers can be aware of its existence and unique features that it contains. Despite the fact that Microsoft terminated its services for previous Windows such as Windows 2000 and XP service packages, users are still using these outdated operating systems because they are simply unaware of the termination. In this view, extensive marketing using social sites, television, websites, and newspapers is necessary for Windows 8 to penetrate market effectively and gain 90% or more of the market share that all versions of Windows currently hold.
Placement
To distribute Windows 8 and reach all target customers, Microsoft needs to use a number of distributors. Since computers are complementary products of Windows 8, Microsoft should collaborate with computer companies in distributing it. Microsoft and computer companies such as Dell, Hewlett Packard, Lenovo, Toshiba, and Acer need to share stores, both online and physical stores, so that customers can obtain these products in the same stores without much hassle. Physical stores enable customer in the developing countries, who have no means of purchasing online due to lack of payment system and absence of the Internet with high speed. In targeting customers from the developed countries, Microsoft needs to enhance security of online system so that customers can comfortably purchase Windows 8 without undue reservations.
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