Microsoft vs. the iPod

Many technology (and engineering firms and auto manufacturers for that matter) have a fundamental misunderstanding of why people buy things. Some people buy a product instead of a competing product because they’ve researched the technical specs, features, capabilities, etc. and for those reasons they feel one product is superior to another. But the vast majority of consumers (i.e. the general public, not governments or businesses) buy one product instead of another because the product is cooler than the other, not functionally better. That’s why Microsoft’s product that will compete with Apple’s iPod is going to fail.

“Cool” in this case is based largely on branding, design, marketing, and buzz, and the chances of Microsoft developing a “cooler” product than Apple are slim to none. A more accurate prediction of what Microsoft’s marketing will probably look like can be found by visiting a post on “If Microsoft Designed the iPod Packaging.”

What Microsoft needs to understand and what most of us assume they will fail at is to understand that buying an iPod isn’t just about listening to music, it’s also about having an iPod. An iPod is cool and makes you look cool, even if you’re not listening to it. And it’s not that you have an mp3 player, it’s that you have an iPod, specifically. You could almost sell iPods that are empty shells and don’t do anything and people would still wear them around.

How did Apple create such a killer product? First mover advantage? Somewhat. But it’s a combination of factors. My opinion is that while having a product out on the market early was important, and its ease of use was also critical, the major reason the iPod is the most popular mp3 player out there is due to the brand Apple already had which they could lend to this new product, combined with the new layers of branding they built around the product. That brand was created through product design, packaging, marketing campaigns, and other methods. And if you think about Apple’s abilities in those areas I think you’ll agree Microsoft doesn’t stand a chance.