Friday, September 5, 2008

Can Microsoft Survive?

I just saw my first Microsoft TV ad which had Bill Gates and Jerry Seinfeld buying shoes and ending with a question posed by Jerry regarding tasty edible computers. I really don't get this ad. What is Microsoft thinking? Will the series of ads build a plot and have an exciting conclusion? Will the $300 million dollars Microsoft is spending on these ads with Gates and Seinfeld payoff in sales and branding? What kind of brand image will they create? As I said, I just don't get it. You can catch the ad on YouTube: click here and let me know your thoughts.

I can't help wondering if Microsoft has more money than they have visionary wisdom. I have been a PC user from the beginning and more and more I see Apple as the better alternative. As for an advertising budget of $300 million on television ads you have to wonder if they are in tune with where the tech buyers are seeing advertising which is on the internet. More specifically, on 'Social Media' platforms such as YouTube, FaceBook, MySpace, Blogs, etc. I mean even General Motors recognizes the internet as the best form of advertising today by increasing their online advertising budget from $197 million last year to $1.5 billion in 2008. Companies like WSI Internet Consulting, the largest global Internet Consulting Franchise Business with over 1500 offices in over 87 countries recognized Internet Marketing and Social Media as the latest wave of their sales worldwide and have certified their franchisees as Internet Marketing Specialists to the small and medium size businesses, the largest market in the world. With WSI consolidating this fragmented market they are leveling the playing field in the advertising world. It means that small and medium size companies can compete with the big boys on the internet.

As the SME's market share grows vertical channel by vertical channel, the market share enjoyed by larger companies will decrease. This will position WSI and their franchisees into a multi-billion dollar supply to SME's. Larger companies like Microsoft will see competition from the SME's that they just didn't see coming. As and when this happens, Microsoft will have to remember that not all companies can be bought. Apple certainly isn't selling and neither is WSI.

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