Zune Attack Update
Reader's of this blog and my book Attacking The Crown Jewels know that Microsoft developed Zune to threaten iPod/iTunes and thus distract Apple from threatening Windows by freeing OS X to run on non-Apple PCs. This strategy has been effective (see Why Microsoft Needs Zune, The Zune Attack Is Working and Apple Inc.-The Zune Attack Is Working). Now the Softies are considering a move that would increase the Zune threat against Apple. Taking a page out of the cell phone service provider play book, Zune would be offered at very low prices if you subscribed to the Zune store on a multi-year contract.
To understand the Zune strategy is to understand the crown jewels attack strategy. First, attack away from the competitor’s offering that threatens your strategy, the strategic threat. In this case, that threat is Apple's OS X if freed to run on non-Apple PCs. Second, attack one of the competitor’s offerings that is essential to its strategy, one of its crown jewels. So Microsoft attacks Apple's iPod/iTunes crown jewel. Finally, attack with enough credibility that the competitor must defend its crown jewels by diverting resources away from the strategic threat, thus reducing or eliminating the threat to you.
Collapsing the price of music players would put Apple in a quandary about its lack of subscription pricing. This strategy makes complete sense. It is a much better idea than trying to load Zune with differentiating features and functions. A music player is a music player (OK, I also believe a cell phone is a cell phone). More, Microsoft is much better at letting others experiment with features and functions and then copying the most successful ideas. I say go with your strength, Softies.
Just keep in mind that Zune's success is measured by the effect it has on keeping Apple from threatening Windows with OS X unchained, not how well Zune performs in the marketplace.
Copyright © 2007 Philip Bookman
Technorati: Business Strategy, Zune, Microsoft, Apple.
To understand the Zune strategy is to understand the crown jewels attack strategy. First, attack away from the competitor’s offering that threatens your strategy, the strategic threat. In this case, that threat is Apple's OS X if freed to run on non-Apple PCs. Second, attack one of the competitor’s offerings that is essential to its strategy, one of its crown jewels. So Microsoft attacks Apple's iPod/iTunes crown jewel. Finally, attack with enough credibility that the competitor must defend its crown jewels by diverting resources away from the strategic threat, thus reducing or eliminating the threat to you.
Collapsing the price of music players would put Apple in a quandary about its lack of subscription pricing. This strategy makes complete sense. It is a much better idea than trying to load Zune with differentiating features and functions. A music player is a music player (OK, I also believe a cell phone is a cell phone). More, Microsoft is much better at letting others experiment with features and functions and then copying the most successful ideas. I say go with your strength, Softies.
Just keep in mind that Zune's success is measured by the effect it has on keeping Apple from threatening Windows with OS X unchained, not how well Zune performs in the marketplace.
Copyright © 2007 Philip Bookman
Technorati: Business Strategy, Zune, Microsoft, Apple.
Labels: Apple, Business Strategy, Microsoft, Zune
posted by Phil Bookman at 10:19 AM
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