See microsoft article. Discuss the case on your blog in terms of channel conflict. 12 months on after the release of Windows 8, is it still an issue?
Channel conflict may be defined as the situation
that occurs when manufacturers start selling their products directly to their
customers by disintermediating distributors and retailers. Microsoft kept the
Surface out of channel because it lacked distribution strategy. Microsoft sold
it directly until December 2012 when flagging sales forced it to open reseller
agreement with best buy and staples.
Microsoft’s announcement of Surface tablet was
threatening for its competitors but side by side as discussed in the article by
CEO ‘s of competitor firms that they were expecting that surface would not be a
success as Wang the CEO
of Taiwanese PC maker Acer, lashed out at Microsoft's upcoming Surface tablet,
saying that the software giant's decision to compete with its OEM partners will
be detrimental to the worldwide computing ecosystem, reports the UK's Financial
Times.
He
criticized Microsoft's decision since the Surface was announced. Wang told the
Financial Times, "We have said [to Microsoft]: think it over. Think twice.
It will create a huge negative impact on the industry and other brands may take
a negative reaction. It is not something you are good at so please think
twice." In a way I agree with Mr. Wang’s statement.
According
to the Channeleconomics article of 20th march 2014,
‘’Microsoft
released Surface in October 2012 with the release of Windows 8, its first
operating system designed for touch-based devices. Windows 8 was intended to
get Microsoft into the tablet game with Apple Inc., the device market leader,
and Google Inc., the platform market leader. Surface was Microsoft’s emulation
of the integrated product and go-to-market stack pioneered by Apple.
From
the beginning, Microsoft had a weak channel story for Surface. At the Worldwide
Partner Conference in 2012, months before the Surface launch, Microsoft evaded
distributors requests for information about distribution plans or the need for
support. Surface wasn’t even on display even though Windows 8 was everywhere.
When
Surface launch, Microsoft said it wasn’t ready for channel sales and support.
It wasn’t until sales tanked out of the gate that Microsoft added retail
resellers to the strategy. In July 2013, Microsoft authorized a series of
direct market resellers — or those specialized in volume sales — to resell
Surface. Today, about 130 DMRs in 29 countries are selling Surface.’’
channelnomics.com/2014/03/20/microsoft-confirms-delta-surface-deal-direct/#.U4TS6yj4Jk0
According
to Channelweb article dated 5th Nov 2013,
In
the survey by the 2112 group, reseller ranked Microsoft a close second only to
dell for poor channel conflict management.Reseller partners and traditional OEM
allies felt this conflict.
This
is still an issue as the conflict is not yet resolved according to article of
channel economics ,
‘’Reports
say Microsoft is readying a new cover typepad for Surface that includes an
external battery. The power-boosting accessory, some analysts say, is
positioning Surface as a more apt notebook replacement that will make the
device more palatable to business users. It will also make Surface more
marketable, and that elevate discontent of Microsoft channel partners locked
out of the Surface opportunity.
Despite
media inquiries and partner complaints, Microsoft isn’t moving any quicker to
clarify when Surface will be released to general channel distribution. Sorgen
is consistent in saying Microsoft will not release Surface to partners until it
felt ready with support and logistics. When asked by Channelnomics
which would come first, Surface 3 or general channel availability, Sorgen
repeated the official stance. ‘’
channelnomics.com/2014/03/20/microsoft-confirms-delta-surface-deal-direct/#.U4TS6yj4Jk0
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