Question 1-Whats wrong with the “one size fits all strategy” andwhy does this not work in emerging markets?hint: ( Microsoft is moving away from this one sizeproduct strategy of the past to open doors into a widerrange of products, to effectively appeal a larger variety ofcustomers with different needs/ wants)“one size fits all” means that there is limited diversity inthe types of products being produced. Windowsoperating systems and Microsoft software applicationssuch as word and excel are all the same across theglobal markets.
Answer:-Majority of Indians do not have access to a personalcomputer. In India only 25 computers per 1,000 ppl vs.USA 997 computers per 1,000 people. This is because ofcost.-Pirated windows software and operating systemsubstitutes such as linux take market sharenote: issues like these are what has driven microsoft todevelope diferent software products that can compete inthe Indian emerging market on a price basis. They haveinvested in foreign markets by employing researchcenters that will address the local consumer demandmore 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. Theeconomies 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 Indias 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 developproducts 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 wasable to compete with linux and pirated software because it was priced lower thereforemore 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 andprivate) could pay cheap monthly subscriptions to other Microsoft software applications. Indian people use cellphones in place of computers, Microsoft identified this as an areawhere they could develop cell phone specific software apps that would better utilize the Consumer and provide revenue to the company.
Question 3How 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 moreappealing products to the local market. It relates to the Idea of local production for local consumption. By developing a more attractive product and making itcheaper for the Indian Consumers, Microsoft has simplyevolved its product and price elements of the 4 p’s. This ties back to the goal of getting away from “one size fits all” because in India an American size doesnt fit.
Question 4What General lessons has Microsoft learned with its experience in India?
My answer:Microsoft learned that product variation is essential forachieving Market Segmentation. Microsoft consideredprice, interests, income level, and computer availability as factors to market segmentation. Microsoft ahdrecognized its potential for sales in India but needed to consider its segmentation strategy in order to fully reach the market.