Now the technology-savvy of you might suggest that Apple will eventually consolidate its operating systems and that its slowness in so doing reflects more the different underlying computer architecture than a desire to segregate on the basis of different customer requirements. But I think Apple has been clever here while Microsoft has not: different things appeal to different markets, and segregating clients by their preferences and providing them with different products and services is essential for many business models. Just as airlines and trains have different classes of travel for those who will pay a premium for comfort and space even though they will get there at the same time, business users want (and will probably pay more for) a simpler technology experience with fewer bells and whistles and more simple functionality and, above all, clarity alongside consistency with what they have been used to.
So what conclusion am I drawing: simple – do not forget your core client base, and particularly the one that gives you a steady and long-term revenue stream. Fads and fashions are all well and good but, as I have said before, sometimes boring is best. A Windows 8 that looked the same as Windows 7 but with better security and reliability would have curried favour with the business market which Microsoft continues to dominate. And a consumer-friendly (and perhaps cheaper) version with beauty over brains might also have worked. But treating two very different markets as the same simply does not work. It seems unlikely that a company such as Unilever would expect to sell both Ben & Jerry’s and Slim-Fast to the same customer base – and Microsoft should not expect to succeed with such a strategy.
James Bateman is head of multi-manager and multi-asset portfolio management for Fidelity Worldwide Investment
