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Microsoft Stores Will Fail

April 12, 2011 14:18 by: E. Werner Reschke   0 Comments

Categories: Predictions

Tagged: Apple , Microsoft , Stores

Last week there was a back and forth on whether Microsoft stores were a good idea or a poor one. As most know, last year Microsoft began opening retail stores in malls across America to counter Apple's success. One could almost predict this would happen because Microsoft has become so predictable.

Microsoft predictability stems from its culture. It's pretty much devoid of any intelligent creative initiative. From new Windows features to new Office features, from the Zune to the Xbox,.. it really doesn't matter. Most of what Microsoft does didn't originate from inside Microsoft, but from seeing someone else's success and then rushing to do it too. That isn't to pick on Microsoft necessarily. Most corporate cultures discourage coloring outside the lines and enforce (and reward) conformity to the corporate way. The corporate way is set from the top of the organization. Depending on who is at the top can mean the success or failure of a company.

At the top of Apple is Steve Jobs. Many of us suffered through the bulk of the 90's with Apple corporate chieftains such Scully, Spindler and Amelio. But with Jobs something unique returned to Apple — the pursuit of making technology useable, useful and fun.

At the top of Microsoft is Steve Ballmer. Steve is a numbers guy, which typically equates into a good corporate guy. However in the technology world companies can't rest on their laurels for long or they will become a footnote in the history books.. This is what Bill Gates biggest fear was — that Microsoft should never become the next IBM. IBM, once a great industrial powerhouse, became complacent, slow and reactive to the marketplace. But in order for Microsoft to avoid this fate, Ballmer is the wrong guy at the wrong time for the wrong job. 

The Microsoft retail stores are a glaring example why this is true. Ballmer wants to build these stores not because it is a good strategy or they can make more money. No he's doing it because Apple is doing it — and having great success. But Apple and Microsoft are very different companies. Yes both make operating systems and build software, but Microsoft's success came from corporate America and through Dell and HP and your local PC build-it guy. Apple's success has come from removing the geek in technology and delivering products people can use to be more productive and have fun at the same time. Apple is really a B2C (Business to Customer) company while Microsoft is more of a B2B (Business to Business) company. Microsoft retail stores in malls is never going to work because this is not where corporate America shops. Sure Microsoft sells to consumers but really it should then focus on its consumer products and not everything. An XBox or Windows Phone 7 store makes more sense than a Microsoft store.

Alas, Microsoft will once again spend lots of money on something that looks cool and others are doing well but in the end close the doors to the Microsoft retail stores.

*Photo sourced from GearFuse.com

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