Question

In: Economics

Can you name another technology product that failed? Why did it fail? What could the company...

Can you name another technology product that failed? Why did it fail? What could the company have done differently for it to succeed?

Solutions

Expert Solution

The Microsoft Zune is a prime example of a product which failed.

Bad timing,a lack of innovation, and ineffective marketing were some of the major reasons for it's failure. Microsoft didn't correctly estimate the total available market for the Zune since they priced it almost around the price of the iPod while not making it nearly as good. The iPod had already captured the market(The timing was bad since releasing it in 2006 meant that they had an uphill battle to capture market share)and the Zune was not innovative enough to displace the iPod.

Microsoft could have released the Zune a lot earlier when the iPod was not as well established. Microsoft could have also increased the price and added extra features to compete with the iPod on price or dropped the price significantly enough to capture the budget Microsoft could have also marketed the product a lot more effectively since it's marketing for the Zune was poor.


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