I have to admit even I was SHOCKED by what I saw Microsoft do (or maybe "didn't do" is a better way of putting it).
If you've followed my blog for a while, you know I often rant about how competition doesn't create innovation. It creates conformity. In pretty much every industry I've spoken for or consulted in this is true (and I've worked in 123 different industries). Corporations, large and small, get "new" ideas by simply watching the competition, copying what others do, thus creating a strategic orthodoxy within that industry. Examples abound!
But Microsoft has taken this to a whole new level.
If you haven't heard, Microsoft is opening retail stores in malls across the US. You know, like Apple?
But this in itself isn't why I'm shaking my head. Getting into retail is probably something Microsoft should have done earlier, and, in fact, is something more and more manufacturers are doing in many different industries. Nike got the ball rolling many years ago before Apple jumped in. Now we've got Sony, Bose, Franklin Covey, Lionel Trains, and others. Heck, even TIDE has gotten into the act, opening their own dry cleaners! (Of course, clothing companies have had their own stores for years and I'm not even counting the outlet mall stores. And isn't "outlet mall" an oxymoron?)
But here's the thing. Microsoft's new retail stores are almost IDENTICAL to Apple's. Check this out:
The front is identical.
The inside is identical.
Microsoft has an "Answer Desk" that looks identical to the Genius Bar ain an Apple Store. The employees all wear colorful t-shirts with ID lanyards, identical to Apple's. And the stores are strategically located as close to the Apple Stores as possible. In the Mall of America, it's directly across.
It goes on, but here's the kicker. According to the Electronista: Gadgets for Geeks website:
Uh, they had Miley Cyrus for the Bellevue Square grand opening. The first 1000 people in the door of the Microsoft Store got two tickets to her show. Ya, Miley lured the parents. (I think the second 1000 got FOUR tickets.)
Does Microsoft think they can beat Apple by imitating them and putting stores next to them? Do you?
I'll tell you what I think. I think Microsoft's Business Development division spent several years trying to come up with a retail concept that would beat Apple. I think they knew that anything they built HAD to BURY Apple in wowness and coolness. And I think that every idea they came up with was an obvious failure. I think the Microsoft team eventually realized they were never going to beat Apple trying to out-innovate them. Nobody is going to out-innovate Apple right now. Someday somebody will, but not any time soon and it won't be Microsoft. I mean, come on, have you SEEN the Zune?
I think somebody very high up in the Microsoft chain came up with the brilliant idea of copying Apple on purpose and announcing that it was the strategy all along. And that same somebody thinks they can win a game whose rules were created by Apple.
Okay, innovation is hard. It's really hard. Microsoft proves that. But Peter Drucker said that business has two, and only two, basic functions – marketing and innovation. So, if you're going to be successful in the long run you'd better get good at both. Here's a tip to get started. Look at what your competition is doing and don't do it.
Come on, Microsoft. Is this the best you can do?
Perhaps they are going for the “let Starbucks do all our marketing for us” effect:
http://consumerist.com/2007/12/want-a-thriving-coffee-shop-open-next-to-a-starbucks.html
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
Josh,
Could be, but that article was written three years ago. Tully’s Coffee used that strategy and no longer has any stores. And I don’t think we can call Microsoft a Mom-and-Pop.
I totally agree with you about Microsoft. Maybe they should spend their time on improving their main product (operating system) so it will run like it should. Never ending problems and “fixes”.
I left the “Windows World” years ago, and it was because I realized using an Apple Macintosh was light years ahead in usability compared to the PC. Take the directions on “how to install” with any program that works on Mac and PC. The Mac directions are always no more than 2/3’s the steps of the PC to complete.
I see more and more people switching to Mac’s, and I believe the trend will continue… for the main reason you suggested, Steve… their “Lack of Innovation” compared to Apple’s constant innovation. Who likes a copycat? Nobody… Who admires a copycat? Same answer.
Great post, Steve!
David Long
You can go into an Apple store and buy a computer in the form of an iMac, iPad, iPod, etc. — an actual, tangible product that you can touch, feel, and play with. It’s sexy. It’s cool. It’s trendy. That’s why people go to the store.
What will Microsoft me selling? Software? Operating systems? (okay, maybe an XBox, keyboard, or mouse). But whose computers will they use in their stores? Will they start making their own? The Microsoft iWin perhaps?
These two giants are selling two different products and two different experiences in their stores — and it seems to me Apple’s is much more exciting — for now anyway.
A guy leaves an Apple store and says, “Look! I got this cool new iPad,” and immediately he opens the package and starts using it. Or he pushes his friends back into the store to show them a live demo of his new toy.
A guy leaves a Microsoft store and says, “Look, I got this box of software. I’ll have to go home and spend hours loading it on my computer and hope it works. I’ll report back later.” Which one will generate more interest?
I hope Microsoft didn’t sign any long-term leases on these stores.
To copy is one of the highest forms of flattery. It seems to me that Microsoft is already a major innovator and store design is not one of them. So rather than try beat the competition in this marketing fashion they will continue to work hard in other areas. The use of the store is to push public awareness, to show more products and maybe partner with more companies that use their software.
Why do you see fast food stores right near McDonald’s? Some of the same principle applies. Keep your friends close and your competitors even closer.
Steve,
Great post – Microsoft has ALWAYS been a copycat, though. From the original MS-DOS which was a buy-and-tweak from another early tech firm all the way through Windows ripping off Mac, IE copying Netscape, Zune copying iPod, and now the retail clones. Microsoft might as well be starring in “Attack of the Clones”
So far, it’s working despite some headspinning failures like Zune – and this retail thing which I’m sure will fail. And do you remember Microsoft Bob? Google that one for laughs if you don’t happen to recall.
Great work as usual.
Your fan,
David Newman
http://www.doitmarketing.com
I totally agree with David. Microsoft became the giant that it is by copying others. There isn’t one idea that Microsoft created themselves. Before Windows there was Apple. Before Xbox there was Nintendo and it goes on and on.
There are many, many people that like Windows and don’t want to move to Apple (don’t ask me why – I don’t understand them), but Windows has learned that all they need to do is offer them a less quality version… the customer believes it is the same quality and they stay with Windows. Apple continues to offer truly great computers, operating system, and software that is fun to use and all just “works.” Windows does well by following suite with less quality…. this is the part of Marketing that frustrates me. It doesn’t make sense to me – but reality shows, it works well for Windows… why?
I struggle with this constantly as my competitor copies everything I have done in the past and as soon as I do something he does it. It becomes difficult for the public to distinguish the difference on the surface. But there is one thing he does not copy and that is my integrity and that is what sets us apart!
lasvegasbridalshow
Debra,
The reality of business is that if you do something can be copied, it will be copied. Obviously, integrity is a very big deal, but we all must still look for what I call Uncopyable Superiority.
We are all in the arena where competitive advantages are soon eroded away by our rivals. That is why we are marketers. It is our job to differentiate our products, services and ideas so that our brands remain strong. You may have a strong market share due to your innovation, but copycats will chip away at that until there is nothing left. That is why we must be vigilant about continually innovating and updating creative.