Microsoft in India
1.0 Case Study : Microsoft in India
1. Why does Microsoft’s traditional strategy of one size fits all not work well in emerging markets such as India?
There are four main marketing strategies. It can be categorized as Globalization strategy, transnational strategy, internationalization strategy and localization strategy. As shown in diagram 1.0.
Emphasis on local responsiveness
high
low
low high
Emphasis on cost reduction
Diagram 1.0
Microsoft in India initially, pursued globalization marketing strategy. Globalization strategy puts less emphasis on local responsiveness and possesses high emphasis on cost reduction. Basically, globalization strategy focuses on product standardization. That is where the idea of one-size-fits all walks-into the picture. One size fits all, defined as “acceptable or used for a wide variety of purposes or circumstance; appealing or suitable to a variety of tastes” (one-size-fits-all, n.d.). According to the Case Study Microsoft has set the one-size-fits-all strategy, where Microsoft has assumed that people around the world will be able to buy their software. Microsoft has conquered the top most position in the ‘global software top 100 list with revenue exceeding $50,000million’ in 2005 (siliconIndia ,2012). Unfortunately, Microsoft just could not succeed in countries like India and China, particularly in India. As in India, based on statistics, compared to United States, and china, uses fewer personal computers per 100 population as shown in diagram 2.0.
[pic]
Diagram 2.0
(Source : UNdata | record view | Personal computers per 100 population. ,2012)
Microsoft penetrated the Indian market during the 90s. In 1990 the United States has 21.7 personal computers per 100
1. Why does Microsoft’s traditional strategy of one size fits all not work well in emerging markets such as India?
There are four main marketing strategies. It can be categorized as Globalization strategy, transnational strategy, internationalization strategy and localization strategy. As shown in diagram 1.0.
Emphasis on local responsiveness
high
low
low high
Emphasis on cost reduction
Diagram 1.0
Microsoft in India initially, pursued globalization marketing strategy. Globalization strategy puts less emphasis on local responsiveness and possesses high emphasis on cost reduction. Basically, globalization strategy focuses on product standardization. That is where the idea of one-size-fits all walks-into the picture. One size fits all, defined as “acceptable or used for a wide variety of purposes or circumstance; appealing or suitable to a variety of tastes” (one-size-fits-all, n.d.). According to the Case Study Microsoft has set the one-size-fits-all strategy, where Microsoft has assumed that people around the world will be able to buy their software. Microsoft has conquered the top most position in the ‘global software top 100 list with revenue exceeding $50,000million’ in 2005 (siliconIndia ,2012). Unfortunately, Microsoft just could not succeed in countries like India and China, particularly in India. As in India, based on statistics, compared to United States, and china, uses fewer personal computers per 100 population as shown in diagram 2.0.
[pic]
Diagram 2.0
(Source : UNdata | record view | Personal computers per 100 population. ,2012)
Microsoft penetrated the Indian market during the 90s. In 1990 the United States has 21.7 personal computers per 100
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