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Case Title:

Microsoft's 'Digital Vision': Looking Beyond PC?

Publication Year : 2005

Authors: D. Gayatri, T. Phani Madhav

Industry: Information Technology and IT Enabled Services

Region:Global

Case Code: VMG0007

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Microsoft, known for dominating the PC (personal computer) software business with its flagship brands Windows and Office, made a foray into the consumer electronics business with its new Media Centre PC. The software giant invested nearly US$20 billion on digital entertainment business and was aiming for a chunk of the US$108 billion consumer electronics market with its PC-based home entertainment concept. Microsoft has been able to dominate the PC business making its software the 'de facto' standard for PCs and it seems to be trying to repeat the same through its Media Centre PC. Like its previous product development efforts, its latest venture also revolved around the PC and showcased it as the hub of digital home entertainment. However, the going might just be tough for Microsoft to break into the bastion of consumer electronic giants like Sony and Samsung. Microsoft has to deal with many challenges to establish PCs as a hub of digital entertainment.

Pedagogical Objectives:

  • To highlight the reasons for Microsoft's interest in the consumer electronics market and its preparedness to deal with the complexities of the market
  • To discuss the company's efforts to establish PCs as a media hub and to overcome the image that its PC software is 'unreliable and error prone'.

Keywords : Microsoft; PC (personal computer) software; Monopoly; Media centre PC; Digital vision; Growth Strategies Case Study; Consumer electronics; Entry barriers; Diversification; PC-based home entertainment; Convergence; Integrated PC’s; New product development

Contents:

  • Digital Family
  • Microsoft's 'Digital Vision'- From PCs to Consumer Electronics
  • Microsoft's Media Center PC- For the Living Room
  • PC or No-PC?
  • No Monopoly Here!

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