<Industry News> This just in- Microsoft opens Online Store.
Microsoft Opens Online Store for Computer Software (Update1)
(Adds more detail of Microsoft strategy in electronic
commerce in 6th to 9th paragraphs.)
Redmond, Washington, Feb. 24 (Bloomberg) -- Microsoft Corp.
opened an online store to sell computer software and hardware in
a bid to take advantage of the 2 million daily visitors to the
No. 1 software maker's Web site.
The store site, shop.microsoft.com, lets customers buy
directly from Microsoft and four participating retailers --
Beyond.com Corp., CDW Computer Centers Inc., CompUSA Inc. and
Insight Enterprises Inc. Products bought from Microsoft will cost
10 percent to 25 percent more than those from the retailers, as
is now the case, as a result of widespread markdowns, the company
said.
Microsoft is stepping up efforts to sell online to compete with internet retailers of software and hardware such as Egghead.com and Cyberian Outpost Inc. Yet Microsoft's efforts are tempered by the need to avoid taking business away from retailers who sell its products.
''Software is a favorite product category for online
consumers,'' said Steve Schiro, Microsoft's vice president of the
consumer customer unit.
Shop.microsoft.com, which will add more retailers in the
next few months, also will showcase Microsoft's electronic-
commerce platform. The platform uses an array of server software,
including Windows NT operating system, SQL for database
management and Commerce for transacting business online.
Microsoft's moves in electronic commerce have centered on
its MSN Network of Web sites, which is being fashioned into an
online hub. Starting with online services such as the Expedia
travel-bookings site, MSN has branched into online retailing with
its Shopping site.
Electronic commerce generates revenue from online
transactions as well as software sold to companies doing business
on the Internet and consumers buying over the Web.
Microsoft also sells its e-commerce technology behind sites
such as Expedia to airlines and other companies. Those sales have
stumbled on potential buyers' fears of competing against
Microsoft's own Web sites, analysts said.
Shop.microsoft.com is not part of MSN.
Shares of the Redmond, Washington-based company fell 2 9/16
to 152 7/8.
shop.microsoft.com |
