In an attempt to break in tiered sell through processes in US and Canadian Mobile Device Market; Microsoft collaborated with struggling Best Buy to open Microsoft powered Windows store. Initially, Microsoft is going to open Windows Store in 600 outlets of Best Buy covering around 50% of the Best Buy outlets. Microsoft also entered in similar agreement Canadian Electronic chain Future shop to open 100 Windows stores. Currently, Apple and Samsung enjoy strong relationship with electronic retailers and generally get 2000 to 2500 square feet of dedicated product line centric space which in turns helped them with higher product adoption by consumers and prosumer’s. The collaboration is going to help Microsoft to initiate user awareness programme about Microsoft product line other than non-mobility product line. In my point of view, Microsoft would be focussing on highlighting connected device support through Microsoft different product layer.
In the past one year, Microsoft also turned buoyant regarding their successful global Window Mobile Operating System WM8.0 adoption through Nokia Lumia product line. In Q42012, Nokia helped Microsoft Windows Mobile OS to replace Blackberry and captured third mot adopted Smartphone OS in US.
Nokia Launched their product line in collaboration with US wireless service providers and due to near zero level presence of Nokia in the past; the sell through team of wireless service providers finding it difficult to convince potential buyers to buy Windows Powered Nokia device. The wireless store attached sales team finds it easy to push Android device given its awareness with consumer base.
The collaboration can be considered as excellent opportunity platter for Nokia to extend the brand awareness in their traditionally weak geography. It would enable Nokia to sell WM8.0 powered multiple Lumia device.
Microsoft vision is to also transform Microsoft DNA perception from Operating System Company to Connected Device end to end solution provider. The space is going to be useful for Microsoft to demonstrate live as well as virtual multi player X-Box, Surface and other device centric product line.
The collaboration and shelf space would also be useful for both Microsoft and Nokia to develop BYOD vs. Nokia advantage given end to end office connectivity through Windows product line. The proposed store agreement is definitely going to be huge challenge for Blackberry to regain 3rd spot back from Nokia in US market
With multimillion foot fall every year, even if Nokia manage to convert less than half a percent into potential Nokia product user would change US smartphone OS adoption game. Any change in product awareness and adoption is going to have direct impact on ecosystem players around it. In my point of view, the upcoming opportunity and its success may make or break Nokia Long term investors and ecosystem around it.
