Introduction

Microsoft Surface Tablet is known as the most productive tablet on earth up till now. It is windows installed tablet which can be turned into type of laptop when you add add-ons such as keyboards, mouse, etc. Up till now 4 versions of the tablets have been produced which are Surface Tablet, Surface Tablet 2, Surface Tablet Pro 2 and Surface Tablet Pro 3. Through this product Microsoft tried to be innovative and tried their best to make their product differentiated in the market.

Consumer Demand in AustraliaThe individual demand delineates the value individuals are willing to pay for a specific amount of a decent.

The business interest bend will be the total of all individual interest bends. It demonstrates the amount of a decent shoppers plan to purchase at distinctive costs.

A change in value causes a Movement along the Demand Curve. This happens when, even at the same value, customers are willing to purchase a higher (or lower) amount of products. This will happen if there is a shift in the states of interest. A movement to one side in the interest bend can happen for various reasons:

Salary. An increment in discretionary cash flow empowering purchasers to have the capacity to manage the cost of more products. Higher wage could happen for a mixed bag of reasons, for example, higher wages and lower expenses.

Quality. An increment in the nature of the great e.g. better quality computerized cams urge individuals to purchase one.

Promoting can build brand dedication to the merchandise and expand request. For instance, higher spending on promoting by Coca Cola has expanded worldwide deals.

Substitutes. An increment in the cost of substitutes, e.g. on the off chance that the cost of Samsung cell telephones builds, this will build the interest for Apple iPhones – a real substitute for the Samsung.

Supplements. A fall in the cost of supplements will expand request. E.g. a lower cost of Play Station 2 will expand the interest for good Play Station amusements.

Climate: In icy climate there will be expanded interest for fuel and warm climate garments.

Desires of future cost increments. A ware like gold may be purchased because of theoretical reasons; on the off chance that you think it may go up later on, you will purchase no

A fall sought after could happen because of lower discretionary cashflow or decrease in prominence of the great.

Assessment

For some extravagance products wage will be an imperative determinant of interest. e.g. on the off chance that your pay expanded you would purchase more restaurant suppers, however most likely not more salt.

Promoting is imperative for products in which marking is critical, e.g. soda pops however not for bananas. Different sorts of interest

Compelling request: This happens when a buyers yearning to purchase a decent can be moved down by his capacity to bear the cost of it.

Determined interest: This happens when a decent or variable of creation, for example, work is requested for another reason

A Giffen decent is a decent where an increment in cost of a fundamental thing prompts an increment sought after, in light of the fact that exceptionally needy individuals can't manage the cost of whatever other extravagance products. A flashy decent, is a decent where an increment in cost prompts an increment popular in light of the fact that individuals trust it is currently better.

Composite interest – A great which is requested for numerous distinctive employments Joint interest – products purchased together e.g. printer and printer

Conclusion After talking about competitor’s let us come to the demand in the context of its need. Talking in the broad market, tablets have unable to find its particular space. Customers have failed to understand the need of tablet that customers really need tablet to use in their daily life. This is so because smartphones and tablets contain almost same features and a rational customer do not find a tablet really a need apart from having a bigger screen. Fortunately, this is not the case with Microsoft Surface; it has created its space in the market by introducing it as two in one ability that it can be used as tablet as well as laptop. But still whether it’s a fail of advertising strategies, price too high or due to any other reasons that customers are spending less on Microsoft Surface due to which it gained only small profit. As you can see the graph below:

The demand of the product is also affected by the failed product of Microsoft such as making Nokia phones operated by android system as currently Microsoft has signaled to end the experiment of android in Nokia phones. Such failing strategies make customer loyalty in danger and will make it really difficult to diversify other customer to their brand. Thus, people felt insecure whether to buy Microsoft Surface Tablet or not.

Moving to the pricing strategy of Microsoft Surface, this graph below shows the prices of Microsoft Surface Tablets after its release:

For the first three month the prices of Surfaces will remain almost same. The price will decrease in the next three months but at a slow pace. From six to nine months after the start of their releases prices are projected to fell down at a rapid rate. In the end prices of Surface Pro1 64GB, Surface Pro 1 128GB and Surface Pro 2 64GB will be decreased by 500$ and the price of Surface Pro3 64GB will drop to almost 500$. These price cut will enable the customers tors to realize the value Microsoft Surface will give against the money they will spend to this product. The graph below shows how demand of the product will increase with the effect of change in price.

$Supply

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Q S1 Q D1

Furthermore,, regarding the demand of the product, time matters big time. For example, people do not change their tablet for almost a year or so. With having perfect functions and everything perfect but by not launching the product at the right time will cause the demand of the product to decrease as there will be no need in the market anymore.Moving further, the business strategy of Microsoft Surface is to make the products to play key role in the emerging markets. This is so because other brands, such as Apple and Samsung, have already created their brand image towards of their products towards the customers in the main market. This strategy will help the product to understand that which income group does their product belong to and which type of people use their product. Moreover, in the emerging market people will not have tablet and laptop both referring to their income level, so launching their product in those areas will help Microsoft surface to increase their demand as this product can be used as both tablet and laptop.

In conclusion, Microsoft Surface has been innovative. It has created useful product for the customers. Functions and application of its products have been outclassing. To create more demand of its product, increase their market share in the future Microsoft Surface need to focus on which market segment they need to target, being consistent of making more innovative products, suitable time for launching their product, making effective advertising and lastly decide which price they should set which will be perfect for their product.

Demand