Microsoft has exclusive rights for the production and distribution of Vista.
According to Allison & Nuttal (2007), having the patent ensures that Microsoft retains the majority of profits in Vista's production and marketing. It also guarantees that all revenue generated from Vista stays within the Microsoft brand. Even without the patent, Microsoft would have still developed Vista as it possesses exclusive rights to the brand.
The retail market for PCs is highly competitive due to the presence of multiple brands targeting different consumer groups. This has led to an increase in competition as brands strive to meet consumer demands. Nowadays, PC brands engage in negotiations with customers to establish suitable pricing for their products. Despite the high level of competition, the retail market is able to sustain its profitability. PC brands achieve this by enhancing the quality of their brand
...and effectively marketing their products to ensure longevity in the fiercely competitive market. With numerous competitors and a continuous influx, the retail market for PCs remains flooded.
However, competitors will still enter the market (Allison;Nuttal,2007). Microsoft decided to divide their products into basic and Vista versions, even though it was unnecessary because the brand already had a presence in the marketplace. Therefore, extending the brand would only confuse clients. The introduction of Vista in the market has affected the sale of Microsoft products, and the organization should assess the market to understand its impact on the PC market. Microsoft had the ability to create various Vista products, some with more features than others, making them stand out from other products as Vista's launch affected many hardware companies. A significant portion of the extra cost of equipment for Vist
(valued at about $91) was for memory chips. Microsoft considered 512mb of memory adequate, but many manufacturers doubled it to 1 GB for optimal performance, as iSuppli reports.
This was advantageous for chipmakers like Samsung because they knew that Vista's hype could lead to a significant decrease in prices. Vista was expected to have a significant impact on the industry, leading to a higher demand for faster processors, more memory, and larger storage, which would benefit large corporations. In response, Microsoft introduced different versions of Vista, both basic and ultimate editions. The ultimate edition was particularly useful for big corporate customers with wide screens and larger storage, while IT directors and helpdesk managers would use the basic editions.
References
- Allison, K. ; Nuttal, C. (2007). Technology Sector at Threshold of New World Order - FT.com. Financial Times. Retrieved 27 July 2016, from https://next.ft.com/content/b79d6f72-af1e-11db-a446-0000779e2340
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