Thursday, September 21, 2006

Battle for Positioning: Apple and MSFT

http://www.nytimes.com/2006/09/13/technology/13apple.html?ex=1158984000&en=eafe723d4a773175&ei=5087%0A

A movie player to complement Apple’s movie downloads? Why not?

The living room space is Apple’s next obvious frontier. MSFT has already put its stake in the ground with their XBox gaming console and Windows Media Center products; and is now positioning itself to challenge Apple’s iPod dominance with its recently announced Zune music service. Why is all of this happening? It’s a race to integrate products and services throughout the consumer’s digital experience.

Here’s a great article that provides a look at MSFT’s positioning.

http://www2.cio.com/higher/report4267.html

MSFT and Apple are now fighting battles on a few non-computing fronts. Zune will attempt to take on iPod and iTunes’s positive brand image with a more consumer/community friendly music service that they are building from scratch. Apple’s mission, on the other hand, is perhaps more tactically sound. They are planning to invade the living room space with a product that’s an extension of their already successful iTunes service.

Apple’s baby steps or MSFT’s all out blitz? It’s hard to bet against either of these companies.

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