Why Would Apple Get in Bed with Microsoft?

January 22, 2010 Leave a comment

Is it now a three player game?

The web has been all abuzz the past 24 hours about Apple. But people are’nt talking about the upcoming Macworld; rather, rumor has it that Apple is set to replace Google as the default search engine on its iPhone with Bing. You read that right Bing, as in Microsoft’s search engine.

Seen as allies throughout the last decade, Apple and Google now find themselves fighting for the same slice of the pie. Google’s emerging product offerings- such as Nexus One, Chrome OS- makes them Apple’s enemy number one, displacing Microsoft.

So with Apple and Google bound to duke it out, why in the world would Microsoft throw Apple a life raft? The answer is simple; Microsoft needs Apple. Just like Coca-Cola and Pepsi in the soda industry, this intense rivalry between Apple and Microsoft is what has made the two empires what they are today. Here’s how:

  • They compete on brand, not on price. This has created substantial barriers to entry and kept profit margins intact.
  • Created a drive to win the rivalry; this has improved both Apple and Microsoft’s overall performance by keeping them aggressive, creative, and flexible.
  • Branded competition has developed user loyalty. Are you a Mac or PC?
  • Creating a duopoly allowed both companies to grow; not at each other’s expense but at the expense of smaller players.

I have a feeling that Google isn’t going down without a fight. It is sure going to be interesting to see if or when Google’s Midas touch runs out. Do you think there is enough room in the industry for Microsoft, Apple, and Google?

Filed under Branding, Category Development, Competition, Strategy Tagged with , , , , , , ,

Windows 7: A Success

October 28, 2009 Leave a comment

The launch of Microsoft’s latest OS, Windows 7, has dominated the headlines this past week. It is hard to believe the amount of criticism Microsoft, the most powerful brand the world has ever seen, receives. I’m not talking complaints about system performance and stability, I’m talking about marketing! Sure the Seinfeld ads were bad, but Microsoft has used effective branding and marketing to build the 3rd most valuable brand with brand equity of $56.65 Billion.

Many critics will point to Vista’s less than stellar sales as one of Microsoft’s marketing failures. I disagree; the lack of success with Vista was due to the product, not the marketing.

The Windows 7 marketing campaign is all about focusing on the customer:

- The “so bad their good” viral ads pushing for Windows 7 house parties.

- Teaming up with Family Guy to appeal to younger consumers. Though the planned episode will not air after Microsoft pulled their sponsorship, other parts of the deal remain intact, including frequent advertising on the show, a 12-week college tour featuring Windows 7, and a series of Family Guy-themed events.

- A cohesive theme around the number 7   windows7whopper-lg

• Partnering with Japanese Burger King locations to launch the Windows 7 Whopper. The burger has a whopping seven patties and has the  appropriate cost of 777 Yen.

• Decorated section of the Spanish city of Sietes (for those who skipped Spanish, that translates to seven) with Windows-themed colors.

• Launched a giveaway of 777 copies of Windows 7 Ultimate to residents of the Dutch village of Zevenhuizen (“Seven Houses”).

As the global launch of Windows 7 shows, Microsoft knows how to appeal to customers. Now that they have the product to back up the marketing, Windows 7 is going to be a smash hit, whether Mac users like it or not.


Filed under Advertising, Marketing Tagged with , , , , , , ,

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