Topic > Exploring Profit Maximization Strategies for Microsoft

Microsoft noticed this and began to develop their company in a similar way, entering the tablet market in 2013. However, the problem that Microsoft has is that Apple has established a premium brand image that has attracted high loyalties from its customers, meaning that every new product released is immediately requested by its customers. This is demonstrated by the huge demand for "Apple Watch" after their announcement. Demand was so high that orders were held up until August, despite the launch taking place in January. This lack of brand loyalty meant that when Microsoft launched their tablets consumers were much more judgmental when deciding whether to buy a "Surface tablet" or not. This meant that defects were examined more carefully. For example, the App Store on Microsoft's tablet was launched on a smaller scale than the one offered by Apple and this negatively affected sales as people had much less choice, so for Microsoft to increase sales and therefore profits in this market required a longer development process allowing the development of more applications may have been beneficial. However, what Microsoft understood was that although they didn't have the brand that Apple had built, they would combat this with USPs (unique selling points), for example the Lumia 1020 launched with a 41 megapixel camera to appeal to niche consumer markets who cared more about the phone's camera than applications, this allowed the phone's sales to be higher in some markets. This could be one way that Microsoft might be able to increase profits by increasing sales of its phones by accepting that it doesn't have the brand image that Apple has and instead playing to its strengths such as superior quality.