Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
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Abstract
Microsoft, known for dominating the PC (personal computer) software business with its flagship brands Windows and Office, made a foray into the consumer electronics business with its new Media Centre PC. The software giant invested nearly US$20 billion on its digital entertainment business and was aiming for a chunk of the US$108 billion consumer electronics market with its PC-based home entertainment concept. Microsoft has been able to dominate the PC business making its software the 'de facto' standard for PC's and it seems to be trying to repeat the same through its Media Center PC. Like its previous product development efforts, its latest venture also revolved around the PC and showcased it as the hub of digital home entertainment. However, the going might just be tough for Microsoft to break into the bastion of consumer electronic giants like Sony and Samsung. Microsoft has to deal with many challenges to establish PC's as a hub of digital entertainment. The case helps understand the reasons for Microsoft's interest in the consumer electronics market and its preparedness to deal with the complexities of the market. The company's efforts to establish PC's as media hub and to overcome the image that its PC software is 'unreliable and error prone', can also be discussed.
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Abstract
Microsoft, known for dominating the PC (personal computer) software business with its flagship brands Windows and Office, made a foray into the consumer electronics business with its new Media Centre PC. The software giant invested nearly US$20 billion on its digital entertainment business and was aiming for a chunk of the US$108 billion consumer electronics market with its PC-based home entertainment concept. Microsoft has been able to dominate the PC business making its software the 'de facto' standard for PC's and it seems to be trying to repeat the same through its Media Center PC. Like its previous product development efforts, its latest venture also revolved around the PC and showcased it as the hub of digital home entertainment. However, the going might just be tough for Microsoft to break into the bastion of consumer electronic giants like Sony and Samsung. Microsoft has to deal with many challenges to establish PC's as a hub of digital entertainment. The case helps understand the reasons for Microsoft's interest in the consumer electronics market and its preparedness to deal with the complexities of the market. The company's efforts to establish PC's as media hub and to overcome the image that its PC software is 'unreliable and error prone', can also be discussed.
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