Microsoft is probably one of the best known companies in the tech world. They almost have there hand in every market whether its software, search or social networking, you can rest assured that Microsoft have their hands firmly in each industry.
Recently Microsoft has just announced that they will be opening a chain of stores on the high street. This comes somewhat peculiar to me as we are in the midst of a credit crunch and most companies are closing there stores instead of opening them up and shifting themselves online.
The stores will basically consist of selling PC's, mobile phones and a range of other software's. Microsoft have stated that they want to broaden there market reach, and this is such a true statement. They could be making a lot more money then they currently are doing, if they started selling there own items. They have a huge selection of products not to mention the Xbox 360 that has a ton of titles. What they basically would be doing is potentially offering lower prices to the consumer and cutting out the middle man.
So where does this leave the rest of the stores and competition that currently have a huge selection of Microsoft products and software in stock? Stores that sell game consoles and Microsoft based phones could end up losing a lot of revenue share. Although getting into the retail sector may well upset a lot of rivals, it is definitely a good decision for Microsoft as they look to expand there market and give the non technical public a better insight on what the company is about.
But could this force fierce competition from online competitors? We all know their biggest rival is Google, and Google are getting into a lot of niches themselves, could we possibly see the big G hitting high street stores in the near future. They have already launched there mobile handset range and I soon expect them to get into every other market including games consoles.
The high streets are currently in crisis so maybe this is what needs to happen to revive it. I am sure a fierce war between some of the largest companies in the world will bring some much needed public spending to a falling market sector. We would also be able to get products for a lot cheaper by just visiting stores directly and cutting out the third party.
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