Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: LOCATION SEGMENT
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 7372 | 2004 | In an effort to slow the spread of Linux overseas in developing countries, Microsoft is lowering its prices. With the help of the Malaysian government, Microsoft is selling brand-new computers running its software for just a little over $300. The computers are packed with everything from Windows to Microsoft's digital photography package, premium software that regular U.S. customers pay hundreds more for than the Malaysians right now. This move comes as developing countries are struggling to bring their populations online, and open-source software comes as the cheapest solution. Less-developed nations, including China and India, represent a huge and emerging market for Microsoft, and Microsoft is preparing to fight Linux to keep its sales growing. |
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