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Essay on Microsoft Canada Executive Summary

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Microsoft Canada Executive Summary

Microsoft Canada is preparing its marketing plan for the Xbox over the coming year. The Xbox was launched the previous year and positioned as the complete home entertainment solution combining video gaming, the Internet and DVD playback. The Xbox is the most robust gaming console on the market, but faces stiff competition in its product category.

The Sony Playstation 2 is the market leader with over 50% of the console market. Microsoft also faces competition from Nintendo and their GameCube. Microsoft’s goal is to become the market leader in the category by dethroning Sony.

In order to accomplish this goal Microsoft Canada must develop its marketing plan for 2002. Specifically, Microsoft must …show more content…

Microsoft is also one of the best-known companies in the world, and its brand awareness is very high, as virtually everyone who has heard of a computer has heard of Microsoft.

While Microsoft has virtually cornered the market on PC operating systems and office application software, they had little to no experience in the home video game console market. In 1998 they partnered with Sega Enterprises to develop a gaming console to try and grab a share of the US$20 billion video game industry.

With the launch of the Xbox in 2001, there were several major issues facing Microsoft. Mainly, they faced a very competitive landscape dominated by Sony’s Playstation 2 with Nintendo’s GameCube also taking a share of the market. Microsoft needed to decide on its target market as well as the positioning for Xbox, and come up with advertising and marketing efforts that would help penetrate Sony’s strong grip on the industry. The Canadian division of the Xbox team was faced with further challenges since their marketing budget was much less than that of the US division and considerably less than Sony’s budget for the Canadian market place. With the launch year complete, the Canadian team must decide whether or not to reposition the Xbox and reconsider the target market here in Canada. Ultimately, the marketing plan will stem from these decisions.

One of the challenges Microsoft faces is

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