Description: Hoping to take a bite out of Salesforce.com’s fast growth, Microsoft announced aggressive promotional pricing of $34 per user, per month. That’s well below the cost of Salesforce.com
We give you full sales, service and marketing functionality in our standard service where Salesforce.com does not offer marketing functionality or real-time intelligence unless you use the Enterprise edition,” explained Bill Patterson, director, Microsoft Dynamics CRM, noting that Dynamics dashboards are continuously refreshed whereas Salesforce.com requires users to hit refresh, something they can do only twice per hour without incurring additional charges.
Salesforce counters that few customers need more than a couple of status updates per hour, and Dynamics CRM and Salesforce.com “aren’t even close to comparable,” said an executive who described the latter as far more social, open and mobile.
“Our Chatter collaboration layer gives users a whole new social way to interact with the application, and that’s something Microsoft isn’t even close to delivering,” said Scott Holden, senior director of product marketing at Salesforce.com. “We also have mobile capabilities running on all the major platforms, including iPhone/iPad, Android and Blackberry. Microsoft is closed off in that respect, so you get what you pay for.” Read rest of story
Questions for discussion:
- Which of Porter’s generic strategies is Microsoft trying to utilize to compete with the industry leader Salesforce.com?
- Which of Porter’s generic strategies is the industry leader Salesforce.com employing ?
- Do you feel MS strategy will be successful in this market? Why? Why not?