Last week's big news was
Steve Ballmer's comments about the iPad. Microsoft's CEO thinks
Apple has sold too many, and it's time that Microsoft gets its A-game
on to shut down Apple.
Some may doubt Microsoft ability to succeed. You can look back on
how well they have done with Zune,
Kin, and
Windows
Mobile Phone 7 against Apple's iPod, iPhone, and
iOS. Clearly Microsoft has big ambitions - and no clue regarding proper
execution.
Is it even possible for Microsoft to succeed?
Microsoft fears looking foolish as much as it
fears failing.
Yes, if it follows my five business strategies for winning.
Microsoft has the talent and money to achieve each of these goals,
but it appears unable to stick with a plan for long. Microsoft fears
looking foolish as much as it fears failing. This leads me to believe
that it isn't likely to win any time soon.
Still, desperation could be just the kind of motivation it
needs.
Without further ado, my list of the five business strategies
Microsoft must use to defeat the iPad.
1. Keep it Cheap and Profitable
Look at the success of netbooks and the
Kindle. A low price allows penetrations into markets that Apple
doesn't reach. This means that computers and "slates" under $400 don't
have to compete with Apple.
The low price also means a larger market.
There will also be less profit if you don't follow all five of my
business strategies correctly. You can't simply lower the price and
hope to make it up on volume.
2. Make it Simple
Complexity is not the friend of a touch-based device. It needs to be
simple to use. Build it so it takes only one motion to make anything
happen. You can have ten different kinds of motions, from pinches to
swipes, but each does the job without two more to follow.
Never have layers of screens for the user to navigate through.
Don't have a lot of buttons or other tools that could confuse the
user about which to use. Adding buttons only comes later, after you've
trained people on the first or second generation of your device.
Training is part of the product development cycle.
3. Marginalize Your Opponent's Core Business
The easiest competitor to tackle is one that is so entrenched that
it has become inflexible. This is the big problem with Microsoft.
Microsoft cannot risk its Windows and Office monopolies, but Google
can give away free software (Google Docs, Google Desktop,
Google Earth,
Google Chrome (the
browser), Android
OS, Google
Chrome OS, etc.) without fear.
Once a company builds up a large market based on one or two
products, it is weak against any business model that marginalizes those
products.
4. Don't Attack Headlong
A basic
strategy of war is flanking maneuvers. Try to bring your forces around
the enemy line so you can attack where they are weakest: If you can get
behind them, you win.
Apple has an incredibly strong product line, great marketing, and
high brand recognition. A headlong attack on Apple is like an army
attacking a castle. The attacking army will be torn to bits. By coming
around to a back gate (or an unprotected side), you save your strength
for the real fight.
5. Learn What to Leave Out
Apple understands this tactic better than anyone else. Throwing
everything into a product costs money, creates competition for your own
product, and confuses customers. With everything you leave out, you
sharpen your product's focus and save money.
Apple is sitting on billions in the bank because it does this better
than any other hardware vendor out there.
Follow These Strategies and You'll Win
Knowing how to execute these five tactics is what makes Steve Jobs a
genius. He has employed each one against Microsoft. He has consistently
attacked Microsoft where it is weak. Jobs first used hardware-operating
system integration to attack Windows, and then used the iPod and iTunes
to lead a sneak attack on Microsoft dominance in the consumer
market.
It won't be easy for Microsoft to turn the tables on Apple, but it
is possible if done properly. (If any executives from Microsoft, HP, or
Dell need some help, give me a call.)
Apple's Other Competitors
At least there is Google and the Android platform to give Apple some
competition.
Google cares nothing about hardware or software sales. Instead,
advertising revenues props up Google. This gives it a great advantage
over Apple. Apple has clearly crafted iAd to challenge Google in its
core business.
I'd like a good three-way fight between Apple and Microsoft and
Google. The product innovation would be a windfall for consumers.
However, I expect we'll get to see a Zunification of the iPad
concept as Microsoft tries to make a frontal assault on Apple.
This will end in another round of failure for Microsoft.
