Posted by: William W. (Woody) Williams
Coverage of Microsoft's move into retail space is a bit amusing in spots... especially the Wal-Mart angle but, overall, the recent announcement naming a Corporate Vice President of Retail Stores raises a couple of questions.
One: Why hasn't Microsoft done this already?
They've had concept stores on the Redmond campus for quite some time and Apple has been wildly successful with their retail stores. It's rather amazing that the leadership at Microsoft didn't wrap this up with bows and icing years ago.
Microsoft operated a store inside a movie theater complex in San Francisco (1999) but did not sell, only showcased their products. That venture lasted two years. What did they learn from that experience and why the long lag time?
What is different about the market, retail climate, the competition, or Microsoft's strategy today that makes moving into bricks-and-mortar land a good play? How does their Windows 7 strategy work with the retail concept?
Two: What about Microsoft's retail partners?
Microsoft has relationships of long standing potentially at risk with big box guys like Best Buy and CompUSA. They've been in brick-and-mortar land with Microsoft as a partner quite a while.
This is a risk that may be manageable but at what cost?
Surely from the Best Buy perspective a new competitor who was/is your retail partner can't be viewed as friendly action. Best Buy is, so far, refusing comment.
Three: "Me too" Apple?
Unlike Apple, Microsoft doesn't have any computers to sell and little hardware to speak of outside Zune and Xbox. What's on the shelf at the local Microsoft Quick Stop?
If it's computers -- and it has to be computers but might include cell phones running MS products in addition to Zune and Xbox, which hardware vendor will Microsoft choose to stock the shelves running Windows 7 at the store? Or, is Microsoft planning to produce their own computer brand? HP is, so far, refusing comment. Ditto for Dell.
Can't wait for those comments: This will only get more interesting and generate more buzz about Microsoft in the next few months.
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