Lessons from Microsoft

Microsoft is having a hard time, but how much of it is down to the recession?

While the decline in PC sales is undoubtedly helped by the recession, is that the full story. Or is it that Microsoft's business model has become out-dated?

The Internet has caused 2 key changes that are impacting MS:

1 - Wikinomics would suggest the Internet has ushered in an era of mass collaboration which means that big business is no longer the most powerful force in R & D. The most obvious area in is the development of open-source software as a real alternative to expensive licences. Losing this advantage means that MS can no longer dominate as a monopoly supplier. (Related article.)

2 - Cloud computing is challenging the PC purchasing model where software developments drive the need for more powerful PCs.

Microsoft is certainly keenly aware of the challenge that it faces. It is developing it's own Cloud solutions, as well as diversifying into other Internet business. But at it's heart it is still built on a proprietary solution.

It will be fascinating to see whether it can defend this position, whether it can re-invent itself or whether it will ultimately wither.

Dominos - The power of social media in action

Two Dominos employess thought they'd have a bit of a laugh at the companies expense ...



They created a storm which Dominos needed to quell.

The response ...



By taking it head on and in the same channel, Dominos may have turned a PR disaster in to a success. They'll get plenty of air-time and their MD giving a clear message about the importance of hygene in their shops.

Did they manage to quell the storm effectively, or even turn it into a positive. I guess the question is ...

Are you more or less likely to go to Dominos now? (Personally I wouldn't eat there anyway!)

Getting social

The problem with social networks is that there are so many of them. Not only do you have to work out what each one does, you have to know who is there.

This means that if you want to communicate effectively with all of you target audience, you are likely to need to communicate on multiple platforms. Possibly with different messages (either in style of content) going out on different platforms.

The first step in managing this is to work out the best platforms for you, which must also be the ones that are best for your target audience. 

The second is to work out the best way to manage your content. Either running multiple platforms independently, or controlling your content centrally.

Streetview - amazing and controversial

Google's Street view is amazing. If you haven't tried it, why not start at St Paul's (be patient - it takes a little while to download properly).

It is a very useful tool. A friend just asked if she could leave her bike outside the place we're meeting - a quick look and I can see a bike rack. Amazing!

But it is also a tool for the voyeur. Some people aren't too happy about the infringement on their right to privacy and are literally standing in the way of progress!

Digital 5 v 0 Print

My FT.com newsletter gave a clear illustration of state of play in the battle between digital and print based news. It contained these 2 stories (out of 5 in total)

Thomson Reuters executives in pay boom
Six senior executives of Thomson Reuters have been given share awards that could be worth $61m, after a year in which profits and revenues grew ahead of expectations

US non-profit newspapers
Thank goodness for banks and carmakers. Were it not for them, US newspapers would be in pole position as the nation's most distressed sector

Can the message get any clearer!

NB - you'll notice that most of the story on the second link requires a subscription. This premium content is how the FT is performing well in this sector; it has understood the market and where its value lies. (see previous blog for more)