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Sep15
5 Things to learn from Microsoft's Zune strategy

There are a number of things I like about how Microsoft (MSFT) has handled the Zune marketing effort. Contrary to some of the ways they have done things in the past, they are taking this a little more cautiously and getting started on the right foot.

Here are several things I like about what they've done that we can all learn from.

1. Long-term Outlook

While Microsoft has said it will backup the Zune with enough money, it understands that it will take several years to dig into some of the Apple iPod business. This is healthy. With the lead Apple has at this time, it wouldn't have been smart to create expectations that would have been impossible to meet.

zune.jpg2. Not too Ambitious

Microsoft didn't try to produce the single, one-time device that would immediately compete with the iPod. Rather they're talking about where they are going and the ease that someone can add on to the device in the near future.

3. At least it will be out there

Unlike Vista, Zune will be out there. At this time something is better than nothing. Microsoft couldn't afford to have this project fall behind like Vista has. Again, they didn't try to be perfect, but put together a quality device that will be available.

4. They stayed focused on its core use

The fact that they stayed with music and didn't try to go with video capability also, is positive to me. For one thing it probably might have delayed the launch. Video is really only just getting going, and by time Zune is more widely used and out there, Microsoft should be positioned to offer the video downloads when it will be a more profitable and widely used service.

5. Differentiation

While it does a lot of the same things, the fact that it is being marketed as a more community focused device (you can share songs, photos, recordings with others) positions itself as something unique. Just adding something a little different at this stage shows that Microsoft is determined to not only copy the iPod experience.

We'll hear from a lot of analysts - and we already are - concerning how it doesn't measure up to the iPod, and how Microsoft hasn't gone far enough. The problem with listening to analysts though is that they think in short-term, quarterly numbers and outlooks. They have difficulty saying anything positive about something that is built for a long-term run at success.

Just like Microsoft in this arena, we need to consider the same thing when we are building companies and products to last. What do you think of Microsoft's strategy?


2 Comments/Trackbacks




Zune gets free advertising and they know it. How many news reports are talking up zune right now?

Long term is key, it will take all of 5 years to match ipod market share.

I think you're right there. I would say a minimum of around 5 years, and maybe they may get iPods share.

It seems they will probably not get that high of a share to me, but they will get a significant amount that will bring some of the iPods share down.

What's great about competition is that the consumer should win in all of this over the long run.

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