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Microsoft Retail Stores Coming Soon

Sunday, July 19th, 2009

It’s been rumored for a while that Microsoft will be opening up retail stores in order to compete with Apple’s very successful retail operation. Now, a Microsoft spokeswoman has confirmed that the stores are on track to open this fall, although more specific details were unavailable. The folks at the massive software corporation are claiming that this will not really be about the retail experience to sell products to customers. Rather, they contend, it will be about branding and giving people a chance to try, test, and see the full range of products that both Microsoft and the PC world offer.

Spy shots: Microsoft retail store plans revealed First pictures of its flagship store model. (via @techradar)

Spy shots: Microsoft retail store plans revealed First pictures of its flagship store model. (via @techradar)

This is a very interesting strategy by the software giant as they really seem to be trying to go head-to-head with Apple on many fronts. First there were the “I’m a PC” ads which made a blatant ploy at using the money factor to encourage those hit by the recession to consider a PC. Now, Microsoft appears to be targeting consumers more directly. It’s becoming clearer with each passing day that Microsoft is scared that their current branding is going to lead them into a whole lot of trouble. As such, they are trying to re-brand themselves from the current corporate Office image and “you just get Windows because you need it” stigmas to a more consumer-oriented, chic store.

Unfortunately for Microsoft, I don’t see this working because, strangely enough, they appear to be marketing themselves as the wise second choice. Can’t afford an Apple (or direct from the company, are you not “cool enough” to own an Apple)? Choose a PC. Didn’t find anything you liked at the Apple Store? Come inside ours. In other words, implicit in all their campaigns is the assumption that you’ll check out an Apple first and when you can’t find what you’re looking for, then you’ll look at Microsoft. The problem is that the “cheap alternative” can only work for so long. Eventually, the top brass will have to position Windows, Office, etc. as products that you look at first and never feel compelled to look elsewhere.

Indeed, it could be argued that one of the reasons why Apple’s ads are so effective is that they take a concept and show the general public why Apple is better than Microsoft with regards to this specific item. If you don’t like having to download drivers, Apple contends, choose a Mac. If you don’t like having a BSOD (which in all fairness to Microsoft, this has been basically eliminated since XP), choose a Mac. If the executives at Microsoft are smart, they will use the stores to showcase why PCs are better than Macs for the same, or less, money. Despite what many Mac fanboys say, there are quite a few advantages that the PC has over a Mac. For example, maybe having a large display of the plethora of software that you can get for the PC, in comparison to the relatively tiny amount for the Mac, would demonstrate why one should choose Windows. Or along those lines, the stores could have various cool Alienware PCs on display, showing how much of a better gaming platform Windows is (considering that you can get better graphics cards in a PC laptop for the same money as a Mac laptop), and how much you’ll sacrifice if you’re a gamer and move to the Mac. It may be a subtle difference, but each one of these demonstrates why a Windows/PC combination is actually better than a Mac, as opposed to simply saying, “you can’t afford a Mac so here’s a PC”.

All in all, it will be interesting to see how the retail stores play out as a “branding” initiative for Microsoft. Details are still sparse at this time. I mean, we currently don’t even know if the company is planning to sell their software at the stores. We don’t know if this is just a showroom or a real retail outlet. But I think the people at Microsoft are a lot smarter than most give them credit for. They know that with the pressure from Apple, Linux, and now even Chrome OS, the next few years represent a pivotal time for their business. They can either retain their undisputed dominance in the software market, or they can fall by the wayside and be relegated to simply an average company. I hope that they make the right decisions and realize that their best bet is to showcase the strengths of their own products through these retail outlets, rather than just providing these as a means of comparison.

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