The Mac Observer

Skip navigational links

DealsOnTheWeb Daily Deal: OneCall's Weekend Sale - 20 Great Items at Great Prices All Weekend Long

Editorial - Microsoft Retail Stores Would Fail

by , 4:25 PM EDT, April 11th, 2008

Rumors are floating around that Microsoft is considering retail stores, like Apple's, to showcase its products. The problem is, there's nothing to showcase, and while Apple understands the retail store paradigm and has products to back it up, Microsoft does not.

This week, BusinessWeek in addition to analysts from Gartner have pointed out that the level of customer pain with regard to Vista has been caused by Microsoft's inability to innovate with the monster code base of Windows. As a result, making dramatic changes to Vista are akin to rapid changes in direction of the U.S.S. Abraham Lincoln (CVN 72) aircraft carrier.

While business users are willing to endure the pain because they have an iT staff, and they've made a huge investment in Microsoft products, consumers have shown less willingness. For example, they'll grudging accept a new PC with Vista installed, but off the shelf sales of Vista upgrades are abysmal. That right there speaks volumes about the prospects for Microsoft retail stores. CompuUSA's Windows focus and subsequent bankruptcy add further insight.

Microsoft's estimation of the retail market appears to be influenced by Apple's success, and the thinking may be, "Hey, if Apple can do it, so can we."

The problem with that is that thinking is that it completely ignores the fundamentals of the retail business, what turns customers on, what drives them into stores, what makes them pull out their credit cards and what they expect from the retail buying experience. In order to do that, one first has to have products that are easy to support, easy to use, and for which customers lust. Apple's product design and philosophy naturally leads to retail; Microsoft's does not.

There just isn't any analog to Apple products on the Windows side. Customers love cool toys and hardware as evidenced by Apple's enormous Christmas holiday sales. As a result, if Microsoft is even thinking about retail stores like Apple's, they've demonstrated that they fundamentally don't understand the consumer experience and that their corporate strategy remains focused on wannabe greed and not a clear vision of what customers need.

If Microsoft were focused on those needs, they wouldn't be spending so much valuable upper management time and energy on acquiring Yahoo!.

Does Microsoft really want customers, feeling great pain, carrying their computers into those Microsoft retail stores and searching for a Windows genius? Imagine the lines.

For now, Microsoft still has a grip on corporate America which, while not happy with the situation in many cases, just doesn't have the technical expertise, will or money to abandon Microsoft. Tending to corporate America with a truly next generation OS, before the company crumbles under the weight of Windows might be boring, but it's the only chance Microsoft has for long term viability.

Microsoft retail stores would be like putting lipstick on a chicken.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
Subject: Best Buy?

The problem with an MS store is that I can get everything they would sell at Best Buy already. Why would I go to a dedicated store when I can pick up the same thing at BB while I'm buying a DVD movie and a flash-card for my still camera?

By contrast, there are a few Apple products at other stores, but no other place that stocks EVERY item in EVERY color with sales staff that understand them all. The Apple store offers that, and is thus different than any other store.

What can a Microsoft store do that would be different than Best Buy? I just don't know.

View Name:Guest
Subject: Take away BestBuy's TVs
Close Name:bluevoter Posts: 12 Joined: 30 May 2007
Subject: Imagine a Microsoft Genius Bar

I can imagine what Microsoft could put in a retail store that you couldn't get at BestBuy: product support.

Yes, they could sell Zunes with unique designs, offer an onsite download store, sell Xboxes along with games and addons for them, as well as their mice, keyboards, and proprietary software (Office, Project, etc.). They can also sell other manufacturers' phones with Windows Mobile, and a variety of notebook and desktop machines running their favorite operating system (not to say the "V" word).

Agreed, all of this is, at best, only marginally different from what one can get at BestBuy. However, with Gateway and CompUSA stores gone, and Circuit City likely to follow, there will be very few retail outlets for Windows machines, and even fewer with knowledgeable sales staff. So I can definitely see why the Microsofties are thinking in terms of their own chain of stores, perhaps even "drawing upon" the excellent work of Apple's site selection team to find locations.

Even though I don't make much use of their products, I can imagine that they could create a viable, though not wildly profitable, business. What would make a huge difference, though, is if they had competent product support, along with product demos and training, in the stores, again following the model of Apple's stores.

If you work for a large company and you have a problem, then your IT staff is there to fix your machine and get you up and going again, but if you are a small business, an independent professional, or a family that made the decision to rely on Microsoft, then you are pretty much SOL unless you have technical skills or are willing to pay money to talk to support people located in remote parts of the planet. If I had a BSOD, a driver problem, or a spyware/virus problem with a Windows machine, I would welcome the opportunity to talk in person to Microsoft support personnel at a Microsoft Genius Bar.

One huge issue is that the demand would be massive, given the problems that people have with Microsoft software, leading to lengthy delays for service. You might not trust them, either, since they are likely to look much more "corporate" than the guys behind the counter at my local Apple Genius Bar, where piercings, tattoos, and black clothing are the norm.

Close Name:ipaqrat Posts: 43 Joined: 14 Jan 2005
Subject: Looters Bypass Microsoft Retail Outlets

Dateline: Sometown, USA

"In the wake of a Huge Natural Disaster, It has become official. Looters apparently bypassed Microsoft Outlets. Rioters stareamed right past Microsoft stores' plate glass Windows, gathering near the "Fiery Fox" a nearby lingerie chain store. Questioned in front of Microsoft store #34,763, a member of the Pawket Protektors gang, who identified himself as "ReFill" said, "What? I ain't wastin' a brick on Microsoft. 'Sides, I don' want that $hit out here where I am..." Flashing the P|P gang sign, he dashed away, brick in one hand, ubiquitous white earbud cord tucked inside his shirt collar. Congratulations to Microsoft on their low looting losses.

View Name:Guest
Subject: Problem is ...
Close Name:xmattingly Posts: 214 Joined: 31 Jul 2007
Subject: I'd say, more like "lipstick on a pig"

Another point of contrast you might consider is that Apple seems to be viewed as a boutique consumer electronics business... their retail operations have a boutique look-and-feel to them. Having some great looking PHYSICAL products for customers to try out is a huge draw. So what will M$ customers come to see - software boxes?? That's not sexy.

You're right on about their "genius bar" line. If they go forward w/ this, they'd better be prepared to staff up that part of the operation quite a bit.

PS. I don't know what's up with the recent surge in articles (coming from this particular writer), but it's a welcome change. John Martellaro kicks butt.

View Name:Guest
Subject: Fail Once..
Close Name:artman1033 Posts: 995 Joined: 28 Oct 2007
Subject: I found the stores!

I found the stores. See http://www.portraitsofmom.com/
There is to be one in NYC and one in San Fran.
Looks like a short term promotion!

View Name:Guest
Subject:
Close Name:LunarMoon Posts: 3 Joined: 20 Nov 2007
Subject: breaking news from M$

You guys must read what I have heard from a friend with close contacts in the industry. It is really breaking news about the new project M$ is developing to be launched in 10 years (at least) called Windows 7.

Windows 7 will be built in seven modules. Each module will be a deadly sin and Ballmer will be stepping down as CEO and will be assigned as the head of Envy and Greed Divisions. His job will be pretty much the same as today, i.e., to envy other companies' products and launch the same products as revolutionary.

View Name:Guest
Subject: A Vista Box
Close Name:mhikl Posts: 15 Joined: 20 Aug 2003
Subject: Drinks optional

"Microsoft's estimation of the retail market appears to be influenced by Apple's success, and the thinking may be, "Hey, if Apple can do it, so can we."

Great idea. But MS should go one better than the Apple Store. Since Microsoft is in the copy business possibly an Apple-Hooters combo would be an incarnation that might at least take the edge off the long lines ups at the genius bar.

Cheers,
mhikl

Close Name:Intruder -   TMO Mac Specialist Posts: 3013 Joined: 07 Jul 2004
Subject:

What would they run there demonstrations on?

I would think it would have to be generic hardware. Picking a vendor (Dell, Sony, whomever) would imply that they are endorsing one vendor over another. That would probably cause a few problems with OEMs.

View Name:Guest
Subject:
Close Name:Photodan -   TMO Staff Posts: 3108 Joined: 11 Jun 2001
Subject:

As someone who has witnessed Apple's journey from the dark days, I find this quite entertaining.

This is a prime example of turning your weakness into a strength and your rival's strength into a weakness. The big knock on Apple always used to be that you couldn't buy any of its products or accessories in most stores. When they were available, instead of being presented in the most coveted floor space, they were relegated to some back corner and were never working correctly.

Now we have the iPods in the best spaces and Microsoft is suffering because their goods are available in "most stores."

Talk about reversal of fortunes.

-Dan

Close Name:daemon Posts: 309 Joined: 17 May 2007
Subject:

I sure hope Microsoft doesn't start up a retail chain.

View Name:Guest
Subject: MS Hardware?
Close Name:DaiMac Posts: 952 Joined: 29 Jun 2001
Subject: I _almost_ hope they do it.

The thing is, the only hardware of note MS deals in right at the moment is the Zune, the 360, and their peripherals/joysticks. They really can't launch their own PCs right now, because they would have to either premium price them to compete direct with apple (and throw in a similar number of features, trimming the profit potential since you assume a nice version of windows thrown in that normally they make more off of), or price them competitively and its another step towards trimming the difference between their $400 game system (not the full retail cost of its cheapest variant, but thats the minimum to make it playable for all titles) and their cheap but relatively more powerful PC.

Having experienced the joy of 4 failed Xbox 360s personally, bringing the total just among my personal friends to 17 (my 4, my friend Noltron's on his 6th, hasn't even sent the 5th one back yet, 3 for my cousin and 2 other friends are on their third machine.), I'll probably pass on any MS hardware in the future. They're damn shrewd though, when they do things like pay whatever ungodly amount to Tecmo for Ninja Gaiden 2, or Rockstar for GTA content, etc etc...its hard not to say they don't work their ass off smooching devs on the software side of things, at least.

But please open one near me if you do it MS, I want to experience it and compare. I'm not sold on Apple Retail-they're not geared towards me, and I've come to accept that, though I miss the old school shops and better service-so here is your one shot, probably for the next 5-10 years, to win me over. I promise to keep an open mind, and leave my iPod in the car

Close Name:hardmanb Posts: 4 Joined: 08 Feb 2008
Subject: MS Retail Stores

"Does Microsoft really want customers, feeling great pain, carrying their computers into those Microsoft retail stores and searching for a Windows genius? Imagine the lines."

Indeed, but it will never happen.

Microsoft doesn't offer free help service advice people...at least to the public.

View Name:Guest
Subject: Microsoft would make people pay for Service
Close Name:davebarnes Posts: 122 Joined: 12 Jan 2005
Subject:

I think Microsoft retail stores would be great.
They could showcase such products as: http://www.microsoft.com/dynamics/default.mspx

View Name:Guest
Subject: They already tried it once
View Name:Guest
Subject: Re: Circuit City's death
Comment on this Article


You cannot edit your comments.   You cannot delete your comments.
Log in | Register | Having Problems? Reset TMO Cookies & Try Again
Username:   Password:   Log me on automatically each visit   

You are not logged in, and this post will appear as "Guest." Log in with your username and password from the TMO forums. If you do not have a username, you can register here.
Please note that guests are limited to including a maximum of two URLs per post.


Post A Comment
  Subject


  Your Comments



Please enter the word exactly as you see it in the image above. Registered users aren't prompted for this. Having trouble reading the image get a new one.


Recent Headlines - Updated Saturday, September 6th, 2008

Sat., 3:45 PM
iPO Free on iTunes - Samurai Girl, Sonny Chiba, Tim and More
Fri., 5:30 PM
StrangeCharm - Particle Debris And No Soup For Microsoft (Week of Sep 1)
5:20 PM
User Friendly Blog by Ted Landau - Best Buy Polishes its Apple
5:05 PM
iPO The Back Page - Why Chrome? Think Apple
4:10 PM
iPodObserver - Nokia Warns of Weaker Q3, Global Economy and iPhone are Factors
3:30 PM
Apple Gaming News - Call of Duty 4 Embarks for Macs on September 15
2:30 PM
iPodObserver - Some iPhone Users Experiencing Syncing Problems via USB 2 Hub
1:45 PM
iPodObserver - TUNEWEAR Announces Clear Cases for iPhone 3G
1:10 PM
iPodObserver - MTS, Largest Russian Wireless Carrier, Lands iPhone Deal
12:00 PM
ATR: Low Expectations for Apple September 9 Event
10:10 AM
Hot Forum Topic - Reader Reactions: Seinfeld Microsoft Ad
9:15 AM
TMO Quick Tip - OpenDNS: Managing Your Internet Access
8:40 AM
CamSpinner 2 Improves FTP, AppleScript Support
8:05 AM
First Seinfeld Microsoft Ad Airs, Thin on Content
 

The Mac Observer Reader Specials

  • Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
  • OWC: Mercury Elite FW800/FW400/USB2/eSATA up to 2.0TB TOP-RATED Solutions offer High Performance, Reliable storage for all your data storage needs. 500GB $159.99, 750GB $199.99, 1.0TB from $299.99
  • New MacPro Memory 800Mhz With Apple Spec Heat Sink 2GB $88 / 4GB $138 / 8GB $274 - Click to Maximize your Macs...
  • Mac observers can now play Party Poker for Mac as well as Mac casino games by going to MacPokerOnline.com.
  • RamJet Memory: Mac Pro FB-DIMMs: 2Gig kit $115, 4Gig kit $179, 8Gig kit for $355! 500G Seagate Hard Drive $129! Click here
  • For the latest Apple products use Ciao a comparison website to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate cell phones.

  • Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.
  • Special Report: WWDC 2008
  • Special Report: iPhone
  • __________
  • Help TMO Grow
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!

Apple Stock Quote

  • AAPL: $160.18. Change Today: -1.04.
  • (Prices delayed up to 20 minutes.)
  • Discuss in our Apple Finance Board

Hot Topics

What's the buzz? These articles have TMO readers talking.

Top Deals From DealsOnTheWeb