Tuesday, October 03, 2006

Tesco enter the Software Marketplace

On another Note, Tesco have decided to enter the home software market with an office suite, anti virus and drawing program. The suite is going to be marketed as a budget product around £20 compared to MS Office which has a basic retail price of £199. I can't make up my mind if this is an incredibly clever or incredibly stupid move.

On the one hand going up against a Microsoft dominated marketplace could be seen as a foolhardy move, especially with an Open Source product also in the marketplace, and on the other hand the purchase channel for a perceived low spend user is understood by this segment and so it might just work. If it works there could be interesting responses from other retailers in the sector, perhaps even Sainsbury's becoming a channel for MS OFfice, or maybe even a low entry level version of MS Office appearing in Somerfields . I'm going to watch this one with interest because I freely admit to not knowing what will happen next. Tesco are used to picking fights with people but even they could take lessons in bullying from the Redmond boys.

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