IT g1147g1006g1025g11352g5078g3342g19156g2818g6124g11065g2506g1267g1274g2115g5647g13475g10714 g1872 g1237g1006g1119g1006g18108g5647g11429g5506g17731g1025g3281g7389g19492g1856g2508IT Industry for the past 50 years g13007g13491g7114g12071950s 1970s1980s 1990s1990s 2000PCg7114g1207g1126g13864g13605g7114g1207Evolution of High Tech Market! Characteristics of Evolving Market:! Emergence of Leading Design! Broadening Applications! Development of a Mass Market! Speed of Market Development! Evolution of CompetitionLeading Design! Why Leading Design?! Economics advantages of standardization! How is the Leading Design Chosen?! Market selection! Government selection! Business collaborationBroadening Applications! As product and process technology matures:! Performance/Price ratio becomes favorable! Applications & technology widen! Broad applications paves road to mass market.Development of a Mass Market! Mass Market! Broadening the customer base! Beyond Early Adopters! Facilitated by:! Emergence of Leading Design! Broadening ApplicationsTechnology Adoption Life CycleSkeptics:No way!Conservatives:Hold on!Opinion Leaders:Get ahead!Innovators EarlyAdoptersEarly MajorityLate MajorityLaggardsInfrastructureTechies/IEU:Try it!PopularityPopularity(%)(%)100806040200Electricity(1873)Telephone(1876)Automobiletomobile(1886)10080604020 120g90g102g98g115g116g102g98g115g116PC(1975)Internet(1975)Source: W. Michael Fox and Forbes MagazineSpeed of Market DevelopmentEvolution of CompetitionInnovators EarlyAdoptersEarly MajorityLate MajorityLaggardsCompetition at Transitional Stage:- Managing transition to mass market- Product design for early adopters- Capability to build mass marketCompetition at Mature Stage:- New technology can destroy old orders- Creative destruction2001Case Study:The Changing Microsoft1995Microsoft At A Glance! 43,000 FTE! Offices in 66 countries! Microsoft employees send an average of 1,287,993 e-mail messages per day! Microsoft employees each month consume 616,766 (7,401,192 year) cans of soda and carbonated waterMicrosoft Worldwide NetworkRedmondSilicon ValleyCanyon ParkMOSWestLos ColinasCharlotteChicago1 Corp Data Center6,000 Servers128,000 PCs9 million voice calls per month600 applicationsSao Paulo1.5 M + e-mail messages per dayJohannesburg55,000 mailboxesSingaporeSydneyChofu & OemachiDubaiLes UlisTVP TelehousDublinBeneluxMadridMilanStockholmMunich450+ worldwide IT locations to support103 Exchange ServersMicrosofts Marketing Strategy! Set Vision! Rapid Innovation! Localization! Building the supporting industryEmpower people through great softwareany time, any place, and on any deviceSet Vision Leading the market designRapid change to address the dynamic marketBackward compatibilityInnovationLocalization Products# Features, User Interface, Documentsetc. People # Employee# People development# MS China R&D Center# MS GTEC at Shanghai# MS China Research Co-work with government and local industryBuilding the Supporting Industry Partners# Hardware# OEM# Distribution# Channels# ISV# Solution partners Education & Certification# ATC, CTEC, AATP# MCSE, MCSD, MCSAMicrosofts Marketing Tactics! Measurement! SMART Goal! Solid execution! Segmentation! CompetitionMeasurements! Market Situation! Goals! SWOT! KSF! Issues! Strategy! TacticsSMART Goals! Specific! Clear to everyone! Measurable! Must be a way to measure it with numbers.! Achievable! Not a “Mission Impossible”! Relevant! Plan with resource on hand! Time bound! Time schedule and due dateWindows XP Launch PlanCase StudyContents$ Market Situation$ Market size and opportunity$ Launch Objectives$ Marketing Strategies$ Goals$ Tactics$ Positioning$ Message for home and business$ Schedule and Milestones for Launch$ Product SKUs & Pricing$ Marketing ProgramMarket Situation$ Growth rate of PC Market is decelerating (FY00 14%, FY013%, FY02 10% ) $ Windows 98 is the major OS for the desktop/laptop that dominate the market up to 51% and follow by Windows 95 (26%)$ For next one year, Windows 98 still well appreciate than Windows 2000 among overall market$ Most current adopted application software based on Windows 98/95 that cant run under Windows 2000$ To run Windows 2000 smoothly requires powerful hardware (CPU)Source : OS Tracker Sep/2000Market size and opportunity050000010000001500000200000025000003000000350000040000004500000FY98 FY99 FY00 FY01 FY02PCs InstalledBaseBusiness PCHome PCTotal PCShipment100%1141140100%1037815100%918316100%805899100%675364Total PC Shipment44.2%50438445%46701745%41295038%30989930%202609Home PC55.8%63675655%57079855%50536662%49600070%472755Business PC44281163962340350852530528592676000PCs Installed BaseFY02FY01FY00FY99FY98Commercial OS - 723,631 units( FY00 FY01 Q3)0200000400000600000FY00 FY01 TotalWindows 98Windows MEWindows 2000NT WorksatationOthersg735g764g774g758g760g769g774g760g691g774g758 g774g760 g714g709