Microsoft Corporation: The Design of Microsoft Support Network
1. What factors suggest that Microsoft’s PSS Division needs a more comprehensive and flexible approach for its service offerings?

 Margins had shrunk and customer service costs had risen with support costs being 10% of dollar sales.

 Customers that used several Microsoft products were getting confused with the existing setup and also getting frustrated with Microsoft's technical support services in the way it was being handled currently. Microsoft's support services were not as good as those offered by some competitors.

 Microsoft had 150 products, which led to a chaos in service and support.

 Some products had no support services, some offered unlimited free service that was accessible by phone through a toll free number, and others provided extensive telephone service for a fee.

 With customers with several products the service offerings were confusing because it was difficult to know which service came with which product.

 The growing dissatisfaction of corporate accounts and developers with the availability and quality of “high end” support. Expert users felt that they were paying for support services they were not of a need on basic applications. At the same time, they could not get support services on some of Microsoft's new introduction related to the line of highly technical advanced systems, even though they were willing to pay more for highly responsive assistance on mission critical problems.

 Microsoft managers expected that demands for high-end service on its own network would become even more acute in the next few years with the introduction of a new generation of technically complex products

 Changing perception of customers on quality of Microsoft products and the nature of technical support service requested was also changing

 There was a need of