Microsoft struggles in emerging markets

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It's the dollars stupid.

Every human has what I call the value/cost center in the brain. Any time we
consider spending money or making a trade it is called in to action and
analysis is performed almost instantly. Of course this part of the brain is
adjusted via a nerve to the wallet sensor, (located you know where). The
fatter the wallet, the easier it is to justify the cost. But the opposite
is also true, a very skinny wallet cranks the brain center into 100% penny
pinching mode. Every purchase must offer outstanding value or it isn't
made. In developing countries the average wage tends to keep the general
populations wallets on the very lean side of the equation. No matter how
you present a product it must meet the outstanding value hurdle if a sale is
to be made.

To add to the problem is that fact that when I see PC's not only are they
are work orientated, they are Westernized work oriented. They do lots of
verbiage (text) and numbers (accounting) and I am not certain what the
average third world citizen would need it for. Yes I know and agree that
*someday* it will be important, but not today or the immediate future. When
your wallet is lean, someday needs get put off to buying it *someday*. (as
the OEM's and MS are discovering.)

The "secret" Microsoft is looking for has two sides. Produce something this
population wants and needs now, and make it affordable. Affordable meaning
it can pass the "outstanding value" test. That in my opinion is one very
tall order. By that I mean, PC's had an immediate market in the US. We are
verbiage and numbers crazy by virtue of being a capitalist society. It was
a natural fit and America took to it like a duck to water.

I often wonder if this isn't a bit like trying to get someone to buy luxury
cars when there are no roads to speak of. Sure it looks great and it's neat
and if we had roads it would a wonderful thing to have, but without roads,
what good is it? Most of these countries citizens are just beginning to
grasp the idea of capitalism or even the idea of private ownership. Selling
them tools to be "productive" before they even have a hand full of dollars
to count seems like a waste to me. And it would appear the same is true of
the people in these areas. Coming up with a reason to own a computer should
be the first task undertaken, not trying to convince someone it's a good
deal when they don't need it...



By the way, this isn't just MS, the OEMs are backing up and re-thinking it
too.

Posted by: No_Ax_to_Grind   Posted on: 05/07/04 You are currently: a Guest | Members login | Terms of Use

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