Microsoft continues to grow its chain of Microsoft Stores with a couple of new additions in California and Texas. Not surprisingly, the new stores are literally a stone’s throw away from rival Apple stores in the same malls.
Over the last couple of weeks, Microsoft opened a pair of new Microsoft Stores, one in Palo Alto, California and the other in Austin, Texas. Although the official announcement of the grand openings was just posted to the company website today, the stores have been open to the public since mid-to-late April.
It’s not necessarily the opening of the stores that most interesting, although it’s good to see some expansion in this economy, but rather the obvious Microsoft strategy of opening new stores in close proximity to Apple’s. From today’s release, “The Microsoft Store offers a wide variety of the latest Windows-based devices and software,” said Steve Guggenheimer, corporate vice president of the OEM Division at Microsoft. “This extends our vision of delivering great experiences to customers not only while using their devices, but also while shopping for them.” It seems Mr. Guggenheimer forgot the part about Microsoft thumbing their nose at Apple.
Women’s shoes and handbags are the only thing separating the Microsoft and Apple stores in the Stanford Shopping Center in Palo Alto, Calif.
All kidding aside, Microsoft’s strategy of opening stores in close proximity to a competitor is nothing new. For years, during the “Burger Wars”, Burger King consistently opened new restaurants nearby rival McDonald’s. Burger King execs would let the McDonald’s expend resources, do market research on optimal locations, etc. and then Burger King would just follow suit. Microsoft’s strategy is somewhat different, however. Although picking optimal locations is a key component, Microsoft’s strategy is more about wooing potential customers away from Apple, while also providing an environment where customers can learn about and experience Microsoft’s and their partners’ products first hand.
“I can see your store from here!” Microsoft and Apple stores at The Domain in Austin, Texas.
Microsoft’s choice of locations is somewhat brazen, but we understand why being nearby Apple Stores is smart strategically. Apple Stores tend to be attractions that draw in significant foot traffic. But they also tend to be crowded, which can make getting help in a timely manner difficult during peak hours. If some of those customers get sick of waiting and stroll next door to check out what’s going on in a Microsoft Store, there’s real opportunity there.
What say you? Is Microsoft just hoping to piggy-back on Apple’s successful stores or is their strategy deeper than that? We’d like to get your thoughts on the subject and if you’ve visited one of the stores, we’d also like to hear about the experience.
