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Microsoft Marketing Strategy

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Marketing Spotlight - Microsoft

Microsoft was founded in 1975, when Bill Gates left Harvard at age 19 to work with high school friend Paul Allen on a version of the BASIC programming language. After moving the company from Albuquerque, New Mexico, to Seattle in 1979, Gates and Allen began writing operating system software. What happened to the company since its founding is a well-known and often-told story. Key strategies that enabled Microsoft to achieve such remarkable growth in the competition-laden computer industry include product innovation, brand extension, heavy advertising, competitive toughness, and product expansion.
In 2005, Microsoft shook up the marketplace - and the marketing industry - again with its non-traditional launch for the Xbox 360. Read Microsoft's Xbox 360 spin(http://news.com.com/Commentary+Microsofts+Xbox+360+spin/2030-1069_3-5706144.html) and address the following questions:

What are the key elements of Microsoft's marketing strategy for the Xbox 360?
What are the similarities and differences compared to past product rollouts within Microsoft and compared to the rest of the industry?
Could Microsoft be considered one of the best and worst examples of marketing success in America during the 1980s and 1990s? Discuss.
Do any of the Microsoft strategies contradict future issues that Microsoft and other technology-oriented firms should prepare to deal with in coming years?

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Solution Summary

This posting discusses the Microsoft strategy for the rollout of Xbox 360. Issues related to Microsoft marketing strategy and marketing success also described in detail.

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What are the key elements of Microsoft's marketing strategy for the Xbox 360?
The key elements of Microsoft's marketing strategy for Xbox 360 are. First, it is to launch the product six months before its release. Second, the company decided to unveil the product on MTV on May 12,2005 that is a week before E3. Third, the company decided to compete with PlayStation 3 and Nintendo Revolution even before they were released. Fourth, the company decided to compete by moving direct to the actual consumers.

What are the similarities and differences compared to past product rollouts within Microsoft and compared to the rest of the industry?
The current roll out is different because it helps the company to by pass industry players, dealers and analysts and reach the customers some time before the release.
Usually, the strategy of Microsoft and the industry is to release its new products at large events like ...

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