Microsoft's Retail Experience Centre in Redmond Washington
Microsoft has decided to take their not so secret anti-Apple stance one step further by deciding to opening a series of retail outlets that directly compete with the now iconic and very popular Apple stores. Microsoft has escalated this ‘threat’ to new levels by publicly stating that they will open their outlets next to or near existing, well established Apple stores.
From a retailing standpoint, it makes sense to capitalize on your competition by feeding off of their audience. But Microsoft might run into problems with the looming Google OS (Chrome), other retailers like BestBuy and of course their OEM’s like Dell and HP.
First – the retail outlets will surly emphasis 3rd party devices like HP laptops and the like, but Microsoft will be exposing these manufactures to closer scrutiny from consumers – putting their equipment in direct competition with Apple products. But unlike Apple machines, HP, Dell, Gateway products are at the direct mercy of how well Microsoft develops it software and the operating systems features. Head-to-Head comparisons of PC based products always results in higher grades going to Apple products. I don’t know how manufacturers feel about being forced to compete with the crowd favorite, when all they can compete on is price and hardware design/features.
Prediction – Hardware companies tired of dealing with MS will be more open to adopting the Google Chrome OS
Second – Microsoft risks pissing off it’s major retailers – like Future Shop and Best Buy. Do you think other retailers want to see the Microsoft Stores syphon off their hardware sales? Do you think retailers want to loose sales of USB cables and power bars to Microsoft? Do you think these retailers are going to push Microsoft products and related hardware in their stores? My impression is this leaves a big opening for Google OS. And ironically Microsoft could find it in the same boat that Apple toiled in for years, with the lack of major National retailers even wanting to carry their products. Apple had to fight to get into Best Buy and other chains. So Apple and Google can now go back to major chains and offer them incentives to push their products. I think Google will have the best chance in forming a wedge and getting better access to consumers. And all they have to do is point to the MS store down in the mall taking away their money.
Prediction – Retailers will push Google OS and Apple products
Apple Store Interior
Third and finally – Microsoft will become directly compared to Apple. Microsoft due to the nature of their more open system risks putting this on display in a retail setting. I can’t imagine how Microsoft hopes to show it’s as equally simplistic in a retail setting. Photos of their prototype store show the more chaotic feel to their store. The experience will be more along the lines of visiting the Sony Store – and we all know how Sony has lost it’s edge. I really think a side by side comparison with Apple will be to Microsoft’s detriment. Will Microsoft have a Genius Bar, where consumers can get their computers fixed – free under warranty? I don’t think so. The direct comparisons between companies will become very tangible.
Prediction – Microsoft’s retail outlets will grow into chaotic, bad experience outlets, with the feel of a Radio Shack – a whole lot of junk.
So Microsoft will have to put all it’s resources in ensuring that these outlets don’t become a nightmare. If they don’t get it right – this will become a PR and Business disaster.
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