Thursday, April 19, 2007

Microsoft is like Kleenex

http://www.theregister.co.uk/2007/04/19/microsoft_windows_xp_starter/
http://caribjournal.com/2007/04/19/microsoft-unveils-3-windows-xp-office-2007-package/

Microsoft has launhed ap lan that will help a suspected 5 billion people in dveloping countries through their new outreach program, "the Partners in Learning program". They have created a new software package entitled Microsoft Student Innovation Suite, which will be VERY cheap for students. This package includes Windows XP Starter Edition, Microsoft Office Home and Student 2007, Microsoft Math 3.0 (what is this?) Learning Essentials 2.0 for Microsoft Office, and Windows Live Mail Desktop. This package must be puchased directly by 'qualifying governments' and supplied directly to students, which will begin in the second half of 2007. It is being sold for $3. The program, Partners in Learnign program is active in 101 countries currenlty, reahing more than 57 million students worldwide. I would like to know how they are supplying this directly to governments.
I think I am a little skeptial, it's only going to "qualifying governments", they are using old software (XP, not Vista) and seriously, $3? Sounds too good to be true, but who am I to judge....
So pretty much in these articles, we watch closely as Microsoft takes over the wrold for total domination. Microsoft, or rather packages similar to the ones offered by Microsoft (writing programs, presentation programs, database programs, etc. Which by the way, its hard to think of names for these programs besides the names we know and love brought to us by : Microsoft). Anyway, Microsoft and programs would be part of monopolistic competition because they have similar, yet different goods, and they are competing within the same market that is not THAT difficult to enter/exit. Microsoft, coming from a power hosue with lots of money, has enough profits each year to start selling packages for much cheaper so as to break into the poor students and indigent markets. This will open more doors up for Microsoft in the long run, regardless of the fact that they are selling cheaper products, they are now selling to consumers they did not have prior to the price reduction. I think that Microsoft is very smart to use this tactic, becasue they are lowering the prices so much they are making it difficult for other companies to compete, and they are seen as heroes because htey are doing good for more people in the world (YAY!). Anyway, since Microsoft is a big name, more people want this brand in the first name, because we don't think of it as word processing software, we think of it as Microsoft Word, becasue Microsoft is like Kleenex, the brand name has taken over hte product name.

5 comments:

Anonymous said...

$3?!?!?! Microsoft software is expensive, so $3 is crazy. The US isn't one of those countries right? Do you know how they decide which country's government can purchase the software at this price? Do you think this would be an example of price discrimination also? This is going to help Microsoft really be global, and Bill Gates can give up some of his money too.

rusch said...

wow that is crazy!! i know microsoft is huge but still it's weird to think they are able to sell their product at only three dollars. but i mean i'm not complaining! i'd take it for three dollars. students are poor!!
and just like you said that is going to make it impossible for other companies to compete. i don't know much about software but i can't think of any other companies as big as microsoft and i think you'd have to be just as well known if not more to beat three bucks.
(oh and in response to your comment you left on mine about muxes, it's not like a complete sex change, it's just hormones that they take if i remember correctly- not a surgery.)

kdl said...

Awesome. I agree that this is a smart tactic used by Microsoft because by their lowering prices under monopolistic competition, they have applied themselves to a whole new developing market from the beginning.

Erica said...

i think that is a really amazing thing for them to do.. i dont care if they take over the world, they're helping develping countries become more advanced. who know this progect could lead to the development of africa or help a student discover a cure for AIDS. After all 3 billion brains are better than one

KM said...

Might be going to public universities. I know they've done that before, offered only to university students, etc.

Hmm...why $3? I can think of lots of reasons... :) "Branding" comes to mind, like Raveen mentions. Remember that?

And yes, definitely price discrimination.