Microsoft in India Case

HOMEWORK 9

Read the Microsoft in India case and answer the following questions.

1) Why does Microsoft’s traditional strategy of “one-size-fits-all” not work well in emerging markets like India? What is different about these markets? How do customers differ both in their characteristics and in the way they use technology?

The “one size fits all” strategy does not work in emerging markets like India because these types of markets have different needs compared to a market in the US. Microsoft cannot sell as much as they do in other markets because India’s poverty does not allow individuals or small business (less than 20 people) to own a PC or any other of their global products. India’s middle class is well educated, but because of cost they often use a pirate version of Windows and the free open source product Linux which can be found in many servers.

2) What steps did Microsoft have to take in order to develop products that are customized to Indian customers?

Microsoft had to develop a special edition of Windows to protect the franchise from lower-cost competitors in India. The new edition is called Windows XP Starter Edition; this one cost less than 50% of the Windows XP value and has limited functionalities. The Starter Edition comes in English, Hindi, and 10 local Indian languages.

3) How does Microsoft vary the marketing mix of its existing product offerings to gain traction with Indian customers? What else has Microsoft done to make headway in India?

Microsoft varies the marketing mix of its existing products creating goods that match with consumer needs of a particular segment because those needs vary depending on the culture and economic development of that market. Microsoft had to adapt to the Indian market by creating the Windows XP Starter Edition and the multipoint, a system, which allows several mice to operate the same computer.

4) What general lessons can be derived from Microsoft’s experience in India?

From Microsoft...