In early 2009, Microsoft began preparing for the launch of its next operating system, Windows 7. Successfully marketing Windows 7 had become essential for the company, which had faced numerous challenges in recent years, including a commercial and public relation failure of its last operating system, Windows Vista. While Windows 7 had received strong pre-release reviews, its success depended on Microsoft's ability to overcome the lingering skepticism and resentment of Windows Vista. The case presents students with the opportunity to perform a rich analysis of the difficulties in launching a new product following the commercial and public relations failure of the predecessor and provides a platform from which to explore the psychology (from both a consumer and managerial perspective) behind new product adoption. The case is structured to promote an analysis of Vista's relations failure using a psychological framework. Based on this analysis, students are challenged to devise a strategy for the launch of Windows 7 and to make decisions related to advertising communications, pricing, product, target market selection and brand image.
