New Product Development

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25 Nov 2005

New Product Development

Abstract

Utilizing an article from Business Week as well as additional material this essay will answer the following questions using the Business Week article provided as well as the additional sources : What is Microsoft doing wrong in their development of new products as part of the marketing process

Assume that you are a consultant called in to make recommendations on helping Microsoft solve its `Longhorn` problems and new product development in general . What are

your recommendations ? Defend each

What is Microsoft doing wrong in their development of new products as part of the marketing process

Downplaying the news that the next version of Windows (code named Longhorn )would come out as much as a year later than expected was a mistake . In addition , it means that there will be no advances in the operating system for the next two years - one less reason for customers to buy computers . With this product as well as with past ones Microsoft took on too difficult a challenge and talked of technology which it could not deliver . Mike Ferris , Product Marketing Manager at Red Hat Inc , seller of the rival operating system , Linux , says that Microsoft is continuously promising advancements which it is unable to deliver on (Greene , 2004 . Marketing a product and then disappointing the customers can only be construed as a mistake , and some industry players believe that Microsoft can learn from Apple Computer Co , which does an excellent job of keeping new products quiet , and then releasing very exciting new products which amaze customers - such as the beautiful iMac computer which came out in August 2004 . In the development of a new product , Microsoft needs to get the business buzzing and not allow openings to competitors

My recommendations as a Consultant

Microsoft has a rather unique problem in that it 's biggest competitor is itself . Longhorn 's biggest rival is Windows XP . Customers need to be convinced that Longhorn is in fact better than XP (if they are not convinced of this , they will not buy the new product , whilst remembering that XP is the here and now for Microsoft whilst Longhorn having not met its original year still . The Microsoft empire has been built on the what 's next ideology , which has been very effective in grabbing market share (Microsoft Monitor Weblog , 2004 , but is perhaps not the best way of going about things now . Another way of describing this would be planned obsolescence (when it is planned to make an existing product out of date in lieu of a new one (Planned Development , 2005

I believe that Microsoft clients are becoming too sophisticated to be drawn into this type of thing . So one thing I would do as a marketing consultant for Microsoft is try to address all the evangelism that has taken place for both XP and Longhorn . I believe that positive aspects of both products should be concentrated on . The message that future products will solve all your problems ' has outrun it 's welcome . It detracts from existing products , and when , as stated , the future product has missed problem - you are telling your client base that what they are using is problematic , but you have not provided them with a workable solution yet . If I was a marketing consultant , I would be telling clientele that Microsoft is delivering real solutions , today , but is developing products for the future that will be able to keep up with other futuristic technology - in other words , our products are perfect for current requirements , but we have not hid our heads in a bucket about the future . We are aware that every product has a life cycle , depending on technologies , market requirements , etc

For any organization , new products are the lifeblood (Product Development , 1999 . But they need to work hand in hand with existing products for the good of the company

Works Cited

Greene , Jay When Microsoft Can 't Do Windows ' Business Week (2004

Microsoft Monitor Weblog (2004 , retrieved 25 Nov 2005 from the website HYPERLINK "http /www .microsoftmonitor .com /archives /002389 .html http /www .microsoftmonitor .com /archives /002389 .html

Allen , Gemmy , Product Development (1999

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