ABSTRACT
Microsoft Company has earned a reputation all around the world in its production of products and services. Over the recent years, Microsoft has been on the verge of producing extra unique and high quality products in order to remain in the market. On the other hand, there has been a lot of competition from rival companies around the globe. Microsoft is renowned for production of a myriad of electronic devices and software applications across the world. Additionally, Microsoft has done an excellent task in the current technology system. On the other hand, Microsoft company has been on the market in the production of game console, x-box. X-box is a game console introduced in the year 2001 by Microsoft Company in amidst of a very tough competition from other multinational companies such as Sony. On the other hand, Microsoft’s new product will ensure change in the previous product quality and service deliverance.
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Background information and competition
Microsoft Company has been in the market for quite a long period. The company has thus diversified on the production of various products in the market to enable it to stay at the top of the ever competitive market. In practice, Microsoft Company has produced different products including computer applications, computer software and computer memory cards among many products. Over the past twelve years, Microsoft company began expedition actions in employing game console, x-box.
X-box is a game console introduced by Microsoft Company in the year 2001. Additionally, x-box faced a lot of competition from other similar product companies which included Sony PS3. After the introduction of the first X-box from the Microsoft Company, there were a lot of speculations from other companies in what they can produce. However, Microsoft production of X-box has been, over the years, accompanied by an outlook by Sony Company which is renowned for production of electronic devices such as televisions, cameras and game consoles among many others.
X-box 360 kinetic allowed users to have control over the game console. Microsoft introduced an improved technology in the X-box console which enabled users to effectively and conveniently use the game console in their houses. Therefore, X-box with kinetic played a significant role in boosting its sale over the market. X-box kinetic was designed to detect sound from the players and thus one could play, pause or even rewind the game. The kinetic accessory in the X-box enabled Microsoft X-box to dominate the market over the Sony PS3.
REPORT CONTENT
Communication objectives
There has been a myriad of objectives in producing a new product which will have a significant impact in the market. Microsoft’s initial x-box did not have large market coverage due to the stiff competition faced by the Sony’s PS 2. Microsoft Company is one of the multinational companies which have faced a lot of competition in the production of their commodities. It is evident that Microsoft Company is under a competitive market structure as a result of various companies which have stood up to produce similar products. For instance, before the production of X-box in the United States, Sega’s Dreamcast had taken control over the market with a lot of sales in the United States market.
On the other hand, X-box has reputation in the United States since it was the first game console to be introduced in U.S after the Atari Jaguar stopped its sales in the year 1996. Introduction of X-box live in the year 2001 allowed users to play games online with a broadband internet connection. However, X-box competed with other two game consoles which, Dreamcast and Sony’s PS2 which were free. Therefore, Microsoft Company faced a stiff competition over the two game consoles. However, X-box was still preferred as a result of its outstanding features.
The introduction of X-box 360 had very little impact on the Microsoft game console sales. Microsoft’s X-box successor which was X-box 360 was introduced in the market with a lot of competition from Sony’s PS3. X-box 360 which was launched in the year 2005 experienced a low level of sales in Japan. Apparently, the two competing game consoles had similar features thus both would serve exactly the same purpose. Therefore, the two game consoles occupied the same space and thus faced a stiff competition.
Target group
Game consoles are usually targeted all kinds of individuals from the young to the old persons. Additionally, online game consoles have become common not only to the males but also to single women. Therefore, it is obvious that game consoles can have a place in the market if only they can improve on their performance and features.
In this case, the company produced a new X-box console which incorporated all the customers’ demands and expectations. Therefore, Microsoft Company provided new features of the new X-box in order to have an outstanding performance in this ever competitive market. In so doing the company ensured that there were no similar features to those of the Sony PS3; like the former generation of X-box.
Product positioning
Over the recent years the Microsoft Company has experienced a lot of competition from different companies in the same industry. Therefore, in developing a new product in the market, Microsoft Company developed unique and different strategic techniques in selling out their products. In this case, the company assessed the product qualities produced in the previous years and made an evaluation on the new product to be produced.
Generally, market positioning allows a company to show out its outstanding features or performance of the product to be produced relatively to the current product. In this case, the company produced different and more advanced product in connection with the current technological systems. Therefore, Microsoft revised its previous version of X-box game console and made a substantial increase its features in order to match customers’ demands.
One of the major weaknesses with the previous game console was the issue of Blu-ray. On the contrary, Sony had incorporated Blu-ray in their game console, thus creating a stiff competition for Microsoft. Therefore, Microsoft produced a new game console with a variety of features incorporated in the game console including a graphics on the screen and incorporated laser too. Microsoft, additionally came up with a product with multiple of functions which will able the customer to one way or the other use the product for various purposes. In this case, the new X-box incorporated more entertainment functions rather than the previous version where customers would only listen to music through the television. Additionally, current X-box ensured that customers have a wider range of services within their vicinity.
Therefore, the new X-box product has some extra features compared to the previous Microsoft X-box 360. In addition, the product contains new and high technology of the graphics which will enable the product be one of its kinds to develop such graphic design. Developing such diversified features in the new X-box game console will ensure that the product has a variety of distinct uses and performances.
On the other hand, Microsoft X-box has been designed in a manner that it comes along with various entertainment programs. In this case, X-box has incorporated in Television sets hence enabling users to play games without having to subscribe to broadband. Therefore, the new system will be advantageous to customers unlike the previous system which allowed subscription of broadband in order to play live online games.
Media vehicles
The Microsoft new product is supposed to be adequately advertised and its features well known to the customers. Therefore, in order to achieve this goal, the company incorporated appropriate and efficient marketing strategies in order to enable the exposure of the product to the entire community. In so doing, the corporation ensured a wide coverage of its products across the world. Therefore, when choosing a media vehicle necessary for transforming the new product, the company did delve into some certain factors which are important in effective and efficient marketing of the product.
For instance, the company did incorporate some of its strategic marketing mechanisms in social media sites. Currently, social networking media and sites have played an important role in advertising new products in the market. Additionally, as a result of their popularity on the internet, many multinational corporations are using these social sites as a vehicle tool in their campaign strategy towards implementing a new product in the market. Moreover, there has been a lot of influence in the social network sites where people post comments about their perceptions regarding various products on the internet. Therefore, it is more certain that Microsoft, being a information technology oriented company, had quite good knowledge in applying social media tool as a means of selling out their products in the market.
Alternatively, the company decided to hold campaigns to launch the new product, direct marketing. In this case, the company did acknowledge the presence of other competing companies in the industry by targeting on a specific unique quality of the product being produced. Additionally, the company specifically aimed to outline the outstanding features prevailing in the new product design. In this perception, the company would gain customers’ confidence of their product’s quality. On the other hand, the company did use the new media where people were enlightened about the new brand product through the internet and in the form of small text messages. In this case, individuals will have a one on one contact with the company and thus acquire information about the product as soon as it is released.
Alternatively, the company also used narrowcasting media to exhibit the product’s unique features and enable customers to get full information about the new product. In so doing, the company did get customer’s attention on the new product in the market. Therefore, through such media as televisions and radio programs, the company is guaranteed to increase its diversity in exposing the product in the market. The X - box game console thus increased its scope in advertisement of the new game console across the world. Generally, an advertisement is meant to bring out the new product to the market while addressing its distinctive features which will allow customers to prefer it to the previous version of the commodity.
Effectiveness of the media tools
In practice, various vehicle media have their own advantages and limitation in the marketing strategy of a company. Therefore, in our case, analysis of various methods as discussed above is going to be looked into deeper details to prove each and every method’s effectiveness in achieving the desired marketing goals and objectives. First and foremost, the method of narrow casting can have advantages as well as limitations in applying the required essentials. Basically, advertisements through television and radio programs have proved to be effective in promoting the company’s products. However, some instances occur when the company faces competition from industry’s rivals. In this case, the company got a glimpse on the performance and profitability level of the other rival companies in the same industry. Therefore, the Microsoft Company embarked on its weak points of business operations in order to match the high competition faced in the market.
According to an analysis done by the NDP Group, it indicated that Microsoft X-box had dominated the market over the years with a market share of 46% in 2011. Additionally, the Microsoft still dominated the sale of X-box over Sony game console. Apparently, it sold a lot of the game console, outpacing Sony Play Station by 2.7 million units in the year 2011. The consoles had a 49% of the retail consumer, with a $6.7 billion in total sales. Additionally, in December 2011, Microsoft X-box had a 40% of the market share. Even though it indicated a drop in the share market, the company still remained hopeful after the release of the new X-box with a projected 50% market share.
Conclusion
In conclusion, the company has been necessitated to improve on its product quality and the existing product features in order to have a better market performance. In this case, the new X-box contained some features which, ultimately, the consumer found it worth buying as a result of its multipurpose functions. Therefore, it is clear that through the introduction of new X-box game console in the market with distinct and unique features the company has to gain more customers in the market and thus improve on its profitability and performance.
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