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In its next step to connect with consumers, Microsoft will open a number of stores in select markets

Microsoft announced plans to open its own retail stores in an effort to connect with customers and better compete with the extremely popular stores from Apple.

"The purpose of opening these stores is to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy," Microsoft said in a statement on its website.

The company also said it has selected David Porter, former DreamWorks animation global product distribution manager, to serve as corporate vice president for the retail stores.  Prior to his stint at DreamWorks, Porter also served as in store ops, merchandising and IT of Walmart for more than 25 years.

Microsoft did not publicly disclose how many stores it plans to open, what markets will be targeted, or which products will be made available.  It's likely PCs will be sold with Microsoft Windows Vista loaded with other company software, with the store also used to be an advertising platform for Windows 7.

Porter will be in charge of deciding where stores will open, and how they'll market products to the public.  

"This is an exciting time with our strong line-up of upcoming product releases," Microsoft CEO Kevin Turner said in a statement.  "There are tremendous opportunities ahead to create a world-class shopping experience for our customers."

Apple, one of Microsoft's biggest competitors, has more than 200 stores worldwide, which helps draw in new Apple customers.  Microsoft's latest advertising campaign featured former CEO Bill Gates and comedian Jerry Seinfeld -- and although most PC fans were skeptical from the beginning -- the ads flopped horribly, and forced Microsoft to go back to the drawing board.

There are now 144 Microsoft employees serving as in-store "gurus" to help teach customers in electronics chain stores about Microsoft and its products.

Despite having the popular Xbox 360 video game console and Zune MP3 player, Microsoft has still had an extremely difficult time reaching out to owners of Microsoft products or potential customers.  Furthermore, the Vista operating system was not received very well by PC users, and Apple continues to chip away at the PC market while its iPod MP3 players already control the market.

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RE: Looks like...
By nilepez on 2/14/2009 8:15:21 AM , Rating: 2
The question is does apple generate tons of sales via their stores, not whether or not they generate foot traffic.

Average people go to Apple stores? Great, but is that why they buy an iPod or an iPhone? What they do offer, which I think is useful for computer users, is classes to use the Macs. My mother was going to go Mac, and a friend, who'd recently switched told her not to do it, because there was no Apple store near my mother and her friend felt that the switch to OS X was too difficult without classes (and both are people who've used computers for 20+ years).

So from an education POV, the store for MS makes sense, just like it does for Apple.

Otherwise, I'm a bit skeptical of the idea, but we'll see what it looks like

RE: Looks like...
By crystal clear on 2/14/2009 8:34:08 AM , Rating: 2
With the retail strategy, Microsoft said it hopes to articulate and demonstrate its innovation and value proposition. It will pass on "lessons it learns" from the stores to its retail and OEM partners.

Microsoft can loose millions & then simply write it off by calling it a good learning experience.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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