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Can Microsoft retail stores succeed?
By Jeff Bressler for CEOWORLD Magazine Updated:July 23, 2009
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Microsoft is testing the waters at running their own retail store outlets, but can they succeed at becoming as popular as Apple’s retail units?
I’ll play devils advocate on this one and size up potential Microsoft retail services against Apple’s.
A Microsoft retail store could be an attractive venue for the company’s entertainment hardware products. It could use the stores initially to re-launch the Zune, a music player that competes against Apple’s iPod, but has failed to catch on with consumers. A new version of the Zune is due out later this year, just in time for coordinating with the launch of the Microsoft stores
A big question is which brands of computers will be displayed and sold at the store? That isn’t a problem for Apple, which makes its own computers. But Microsoft’s software runs on computers made by many companies, from giants like Dell Inc., Hewlett-Packard Co., and Acer Inc. to thousands of far smaller firms. If Acer is making a PC that Microsoft thinks is going to resonate with consumers more than a Dell computer, then they’ll probably show the Acer, but that move might make other computer vendors feel slighted, but because they’re totally dependent on Microsoft for software, they’ll be unable to do much about it.
Apple’s stores feature well-trained employees who are experts on the products they sell, but would be tough for Microsoft to meet those same standards. For instance, salespeople will have to be trained on several different brands of computer hardware, as well as Microsoft software.
More importantly Apple is famous for the fierce loyalty it inspires in its customers, and its employees. Microsoft will have a harder time getting that kind of enthusiasm out of the employees that they hire.
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