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Essay on New Product Success and Failure

   

Added on  2020-06-05

6 Pages1724 Words306 Views
Essay on new productsuccess and failure

INTRODUCTIONNew product development and introduction is never an easy task for any organisation. Ithas to be precise and perfect then only organisation will attain all its targets in an effective way.There are different reasons behind failure of products such as wrong strategy or error in marketpromotions. The product which is chosen for this report is one of the failed market ventures fromMicrosoft. The ZUNE series was a musical entertainment gadget which was launched in 2006 incompetition of I-pod. Zune is the digital media brand product which was launched by Microsoft. It is the mediaplayer software for Windows PCs and its music subscription services are known as Zune MusicPass. It provides music services, media player and HD videos app that entertain customers.Microsoft Zune was launched in November 2006 but in October 2011, its hardware players werediscontinued to sell in the market (Eggert and et. al., 2011). In 2011, Microsoft decided todiscontinue all services of Zune that included digital media, Xbox music and Xbox video. InNovember 2015, Microsoft tried to download the music of mentioned media player software andflowing services. The Microsoft channel music in different platform. The firm also discontinuedall entertainment brands in the market. The Zune software is still used in windows phone 7desktop and it is available to download music in windows phone. It also provided musicstreaming in different airlines for their customers. Zune has failed to cover all market areasagainst their tough competitor, Apple iPod.1

(Source: Billboard Staff, 2015)The reason behind failure was simple as it was very late to make entry into the marketand till the time it made its approach, Apple musical gadget had captured the market share.Microsoft also failed in understanding the market and its dynamics which hampered its ability toserve in a better and effective way. Moreover, there are different factors behind the failure ofproduct which is stated in the evaluation below. It will be analysed on different parameters:Target marketMicrosoft launched its ZUNE series against I-pod which was a well-establishedWalkman player. It was competing with a product which changed whole market of media playersand made all other look like junk of previous century (Grönroos and Ravald, 2011). The overallsales in the beginning of ZUNE series was 85 million dollar while at the same time, I-pod had asales of 3 million dollar per quarter. The target market for both devices was same, they targeted“Young Adults and Teenagers” as a primary users of these Walkmans. Microsoft stated thereason behind making Zune was that, it wanted to change the way whole market was dependenton I-pod and Apple services for better media consumption. Basically, Microsoft had outsold Mac systems in past with its windows version of OS. Itagain hoped to do same with launching ZUNE where Apple already was established andconstantly innovating. The company as well as market analyst did not check the demand andchanges in the Smartphone market which reduced the demand of any media players (McCreanor2Illustration 1: Microsoft ZUNE

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