Microsoft: We had to discount Office 2007

Microsoft admits it had to discount Office 2007 to boost uptake

They have a lot of discounting to go before they reach the OpenOffice price point (and ease of installation – no insulting product activation in OOo).

Of course they could choose to compete on quality, features and benefits rather than price. That would certainly be my inclination against a zero cost competitor. I wouldn’t go for pointless irrelevant (destructive?) product differentiation either though.

Discounting is the classic finance solution to weak sales. Marketing would plump for better eduction of potential customers on the benefits (perhaps by sponsoring the Excel User conferences??). Engineering would go for more/better features. (Its called functional fixation – We did it at college so it must be true)

I’m with engineering here. What about you?

I guess marketing might go for discounting if they felt the product was priced above the customers valuation. But this is meant to be the premium productivity suite. They still have Works don’t they?

Compare and contrast with Apple who have pretty much just increased prices across their whole notebook line up.

(And OOo 3.0 runs natively on Macs as well as the other two main OS’s Windows and Linux)

Just remind me, what is the point of Microsoft Works?

cheers

Simon

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4 Responses to “Microsoft: We had to discount Office 2007”

  1. Harlan Grove Says:

    Comparing Apple to Microsoft is comparing apples to oranges. Sorry, I had to be first with that. But it’s still true – you can’t directly compare hardware prices to software prices. You’d need to compare the cost of Mac OS X to Windows Vista, but that’d leave nothing on Apple’s side that could be measured against Office (unless some day they become dumb enough to buy WordPerfect Office).

    As for Microsoft Works, the word processor is basically Word without VBA. Everything else is unused or lightly used. My mother used to keep lists in Works spreadsheets (OK, in Mac Works rather than Microsoft Works, but the [lack of] features were comparable), and she used the drawing program. If you don’t need scripting, it may not be a bad word processor. I dunno. I use Wordpad maybe 2 hours in the typical month. 99.9% of the prose I write is e-mail.

  2. Bob Phillips Says:

    Didn’t you mean … apples to lemons?

  3. Simon Says:

    Ha ha thats sharp Bob

    Harlan, I was comparing a company that’s brimming in confidence in its products, to one that seems to be rapidly approaching embarrassment in theirs.

    I see this as further proof Office 2007 has been panned by the market just like its been panned by the on-line community. Just like we said it would when we first saw it. This is a worry for those of us making a living providing add-on services.

  4. Ross Says:

    I seen a few add, and even on of the Radio! from MS targeting school kids – well mums and Dads I guess. I wonder is MS are trying to come at the market from a new angle?

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