Vertygo Team
 
Strategy


Apple vs. Microsoft

In the markets always there are winners and losers.
Let us have a look at the share value of Apple and Microsoft in the decisive 5 years, between 2003 and 2007 - see the chart above -

In March 2003 the Microsoft share value was $23
In November 2007 the Microsoft share value is $36

In March 2003 the Apple share value was $7
In November 2007 the Apple share value is $188

In the last 5 years the Apple share value increased 25 times,
from $7 to $188.
In the last 5 years Microsoft share value increased merely 1.5 times
from $23 to $36.

Who purchased $20,000 of Apple shares in March 2003
sells them in November 2007 for $500,000.
Who purchased $20,000 of Microsoft shares in March 2003
sells them in November 2007 for $30,000.

The chart speaks for itself.
No further comment is needed.


Microsoft has 114 Executives and Vice Presidents.
How can Microsoft take fast and sound decisions with so many Executives and VP's involved?

The release of Microsoft Vista was delayed for 2 years, and yet does not offer significant improvements to Windows XP. It only slows down the CPU performance and overloads the video card. Many customers, after purchasing the Vista operative system, have uninstalled it and have re-installed their old XP.

Something wrong with Microsoft?

And about the Microsoft Zune compared with the iPod ?
Zune has the 2% of the market, compared with 75% of the market of the slick iPod. An unbelievable flop from Microsoft. Bill Gates, CEO of Microsoft, in the mid 90's, answering a question by a reporter, stated: "We are not interested in the Internet".

Microsoft seems just desperately trailing behind Apple - concerning the iPod and iTunes - and desperately trailing behind Google concerning search engines, Web 2.0, and the internet-related business.

The only advantages Microsoft has are the quasi-monopoly 90% in the Operative Systems market, and the similar dominant position in the Office suite - Word, Excel, Powerpoint. But excellent open source products as Open Office 2.0 are attacking.

The Psychological Perception of the companies is a very important aspect, often overlooked by marketing analysts. It reveals how the companies are perceived by costumers and in the marketplace.
Microsoft is perceived as old, static, elephant-like. It represents the "status quo", the establishment, just sitting bluntly on its own gold.
By many, Microsoft is also perceived as arrogant.
Apple perceived as agile, dynamic, friendly, highly innovative.

This can be easily seen in the marketplace, and it has been smartly exploited by Apple in the famous "I am a Mac, I am a PC" ads.

Between Microsoft and Apple who is the loser and who is the winner?

 
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Apple vs Microsoft
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