Microsoft Product Pricing

Microsoft has a very interesting perspective on product pricing. It is clear that Microsoft looks at the market and prices its products competitively. But there have been occasions when Microsoft is introducing an innovative product. How does it decide then?
In these instances Microsoft takes the low-price strategy. Microsoft worries about competitors even when it has a very large market share. If there are important differences in the prices of competing products, a lower-quality and lower-priced product might have a larger market share than a higher-quality higher-priced product. …