5 Ways Microsoft will Imitate Apple to Survive in Retail
February 16, 2009 by Alex
Filed under Business Strategy, Management, Strategy
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When Microsoft announced their decision to enter the retail space, many critics remembered the days of Gateway Country and the current Sony Stores who demonstrate products but move little merchandise. Perhaps the only reason why tech columnists are not entirely laughing is because Microsoft grabbed one of Walmart’s retail executives to help them enter the industry.
The list below reveals five ways Microsoft will have to copy Apple’s retail strategy in order to survive the industry.
- Premium locations. Apple, as a premium brand ignored, the conventions of big box computing stores and Gateway Country. Instead of positioning themselves on the outskirts of towns and in desolate suburbs, they rented locations in the center of shopping districts and major metropolitan areas, like Manhattan or Chicago’s Michigan Avenue. Apple’s are set up along side high-end fashion retailers, and the location matches their brand image.
- Plenty of qualified sales people. Technology is tricky, and Microsoft develops software and hardware for everyone, at every computer literacy level. Microsoft will have to employ approachable, knowledgeable, patient and charismatic sales associates that push features and remain advocates for the Microsoft brand. Above all, these people should be willing to educate customers so they can make the best decision for their needs and expectations.
- Training events for adults/summer camps for the kids. Apple pulls people into the stores to show them the software, let them play and tweak the little devices, and ultimately learn how their tools help people live better lives. Microsoft will have to demonstrate to the public how Windows Vista, and Windows 7, has the same impact. Hold events, and let customers come together to learn about the products and meet people who are trying to same things.
- Unify the Online, Software, Hardware and Retail Experiences. Apple has done well to unify their image and feel across media and environments, thanks to a relentless set of brand guidelines. Microsoft needs to pull their brand on to the same page as well. With the retail stores, we could see the future of the Microsoft brand, and see how their entire brand will adjust over the next few years.
- Move the merchandise off the floor and simplify the layout. Big box electronic stores are set up like mazes in grocery stores. Plenty of products are set out on shelves for customers to help themselves. Apple, on the other hand, may have as little as a tenth of their inventory on the shelves. Out of the 70 customers that may be swarming a store at any time, Apple may only have 30 demo computers on display. It works well because people are not overwhelmed by selection. Think of a person looking to change the type of toothpaste he or she may use. Standing in a grocery store isle reveals ten different brands, and each brand may have multiple types. On the other hand, think of a person looking to buy a laptop at one of Apple’s retail stores. They really only have two options: consumer-level or professional-level. The decision to buy becomes that much simpler.
What do you think? What does Microsoft have to do to succeed in the retail industry?

