This document discusses Microsoft's experience expanding into the Indian market. It notes that Microsoft's traditional "one size fits all" strategy of standard Windows operating systems and software applications does not work well in emerging markets like India. Many Indians cannot afford personal computers and instead use cheaper alternatives like pirated software or Linux. To better appeal to Indian consumers, Microsoft opened a research center in India to develop lower-priced products tailored for the local market, such as Windows XP Starter Edition and cellphone apps. Microsoft also varied its marketing mix and used strategies like cloud-based subscriptions. The key lessons were that product variation and market segmentation are essential for success in diverse global markets.

1. Chapter 15 closing case
Overview

2. Microsoft in India

3. 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.

4. 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.

5. Question 1 continued..
How are emerging markets different than developed
markets?

6. 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.

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

8. -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.

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

10. 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.

11. Question 3
How does Microsoft vary its marketing Mix?

12. 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 p’s. This
ties back to the goal of getting away from “one size fits
all” because in India an American size doesn't fit.

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

14. 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.