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With Windows 7, Microsoft Focuses on Different Kind of Green
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Microsoft has hired some former Apple employees to work in and lead the stores, and it brought on as a consultant former Apple real estate chief George Blankenship, who helped lead the early rollout of the Mac maker’s stores. Microsoft also tapped Wal-Mart veteran David Porter to lead the initiative as vice president of retail stores.
“I wouldn’t say so much that they’re trying to copy Apple’s style as much as Apple epitomizes what successful retailing is all about,” said Michael Gartenberg, vice president of strategy and analysis at research firm Interpret LLC. “For all intents and purposes, Apple has become the Nordstrom of the technology industry in terms of the retail experience, in terms of service, in terms of support.”
Original or not, Microsoft’s new stores give the company a rare opportunity to interact directly with consumers—something that has been tough in the past, given its traditional focus on software. Many PC users get Windows and other Microsoft software by purchasing computers made by other companies in stores where Microsoft has limited influence.
Apple, in contrast, has long had the advantage of making software and hardware. And in recent years, it also has had its own direct connection to users through its stores, which now number more than 270 around the world.
In a similar way, Microsoft’s move into retail is about the company “connecting with its customers and creating a relationship with its customers,” Krammer said.
In addition to selling and showcasing Microsoft products, the stores offer technology help and service at the “Answers” desk and a range of services to help people learn how to use their computers more effectively.
The stores put the company on the front lines in a way it hasn’t been before. At the same time, they aren’t meant to be mere showpieces.
“This is a long-term strategy for us, and our strategy is actually to generate revenues and contribute to the (profit) margins of Microsoft,” Krammer said. “It does have a great benefit of creating a halo effect for the company overall, because this is where we can connect with our consumers and complete that last mile in our consumer strategy. But by all means, our primary goal is to actually generate revenue and margins for Microsoft.”
The company is currently learning from its stores in Arizona and California, and it’s looking at other potential locations, although it’s not revealing much detail about its plans or its ultimate expectations for the size of the chain.
Asked if Microsoft might someday open one in its home region of Seattle, Krammer said it’s “not out of the question,” but she was less than definitive about the prospects. “We’ll have to wait and see.”
Todd Bishop is managing editor of TechFlash.
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