Executive Summary
Kinetic Xbox is a system that uses infrared translates 3D body motion to control video games. Rare and prime sense companies because of technological competition in the Microsoft world introduced the product. Bill Gates and Paul Allen following a series of revolution of innovations founded Microsoft Corporation in 1975 and introduced its second language Fortran in 1977.
This led to its success of the Microsoft 8080 basics in the ICP million dollar awards launched in 1979. In 1983, the Microsoft Company released Microsoft Word to compete with MS-DOS operating system that IBM Company introduced in 1981.
Due to competition in the market, Microsoft proceeded to release OS/2 in December 1987, Windows 3.0 in 1990, and Windows 95 to replace MS-DOS in 1995. Microsoft produced windows pc operating systems, office suite of productivity software, windows and SQL servers, Xbox 360, Bing internet search, business software, and software for mobile devices.
The mission of Microsoft is to enhance the potential of business people to utilize resources to maximize their profits. In 2001, Microsoft XP replaces Windows 95 operating system with the innovation of Xbox that is one of the two largest gaming devices in the world. Later, Microsoft releases Xbox 360 in 2005. Xbox 360 creates the impact of Microsoft development by introducing unique products such as the Kinetic.
Kinetic Xbox 360 enables the user to use the movement of the parts of the body and voice to control video games. No devices or gadgets required. The product attracts the attention and interest of many consumers due to the unique and advanced entertainment, exercise and socialization. However, the product is very expensive and although the consumers need it, they are not willing to spend on the product.
This is due to the availability of close substitutes from its competitors Sony Playstation and Nintendo Wii, which are less costly. The market is monopolistic hence; the Microsoft products have control over their price since they are close substitutes. This means that Kinetic Xbox 360 can only earn profit in the short run since the competitors or new entries introduce products that compete with the product in the end.
Kinetic Xbox segments its markets to focus on subsets of potential customers. In geographic segmentation, the product targets developed countries such as North America, Europe, China, and Japan where the product is affordable by a large number of consumers. Behavioral segmentation stimulates customer demand in the use of a wave of a hand and voice to control video games.
The product uses psychographic segmentation by introducing social networking through face book partnership, extending the product in the mobile phones, and TV and computer systems game entertainment. Demographic segmentation allows the product to provide family entertainment.
We recommend expansion of markets in other countries or target markets to attract a substantial market share. Due to the nature of the market, lowering the price of the product enables survival in the end. The urge to innovate competitor products sends warning to the Company to improve technology of the product to maintain top position in the market.
The company ensures brand loyalty and market control by creating customer experience, customer relationship, sense of pride and belongingness, and freedom of customer expression. These help the product compete effectively and efficiently during its future performance in the market.
Due to the complexity of choice and management of distribution channels, the company makes decisions based on the structures of distribution, patterns of distribution channels, and the intermediaries. Consistent and controlled promotional programs enhance communication of the company and its consumers to increase product awareness and demand levels.