Microsoft’s Bundling Policy

Microsoft has an interesting bundling policy as it sells the Office suite very differently across the world. The Office Suite generally consists of Word, Excel, PowerPoint and Outlook. The suite is considered to be one of the mostly widely used work related softwares.

The Office programs are also one of the most pirated softwares. In order to combat this piracy, Microsoft sells stand-alone programs like Word, PowerPoint for cheaper than the Office Suite. This makes sense, but in some countries the Office Suite is cheaper than just one single program.

Using the Real Exchange Rate, I was able to calculate what the price of the bundle and the stand-alone would be in US$.  This allows me to compare where the software is the cheapest and see if that is related to the piracy rate.

Effect of Microsoft’s Bundling Policy

bundling policy

Here you can see that Microsoft forces you to choose the product they want you to buy. For example: in the Eurozone countries, you are better off buying the bundle that an individual program but in countries like India and Russia where piracy rates are high, you might just buy the stand alone program. The Office Suite and Standalone programs are cheapest in Russia and most expensive in Japan.

Software Piracy Rates by Country

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