The Microsoft Dominance Essay Example | Topics and Well Written Essays - 1000 words

The Microsoft Dominance - assay ExampleThe paper tries to analyse the economic beat of Microsoft and understand why they have been able to retain themselves as a monopoly in the securities industry place. Let us start with the definition of monopoly and then analyse the uniform definition with respect to the distribute controlled by Microsoft in the market. A situation in which a iodin familiarity or group owns all or nearly all of the market for a presumption type of product or service. By definition, monopoly is characterized by an absence of competition, which often results in high prices and subordinate products. Monopoly Definition. Investopedia.com - Your Source For Investing Education Inferring from the above definition, a monopoly is a state of market where one company controls the market with a tight management in place and holding a dominant share where it can dictate the prices and the supply of the product to the market and therefore would exercise a position o f government agency in the respective market. Microsoft enjoyed such dominance in the OS market for computers for two decades and still holds that position due to the free availability of its products in the market. Microsoft accounts for 90-95% of microcomputer operating organisations, and it is the de facto standard for computer applications. It is obvious that it is predominate the market. However, one could argue that its market power is gained from the consumer choicesits legitimacy rests upon consumers who willingly, and in a market with alternative resources and options, chose to deprave Microsoft products. InfoTech & Public Policy Blog Archive Is Microsoft a monopoly Based on Standard Economic scheme? The economic theory behind the dominance of Microsoft has been monopolizing the market and creating products which the competitors failed to innovate in. Microsoft was able to take the Windows to a take where there was no competition at all from the rest of the players in the market. Let is have a look at the OS market to understand why Microsoft was so successful in monopolizing the market for such a long time. At the time when Windows was launched, there were just two players in the market for OS. One was the Macintosh designed by Apple, and the other was windows designed by Microsoft. The precarious thing nigh Apple was that they only created their OS for their own machines and did not outsource the product to other manufacturers waiting in line to produce the Macintosh. Since Apple did not sell their Macintosh OS to third parties, the manufacturers were left with only one option, and that was to buy the OS from Microsoft, the Windows based application. Since Macintosh was more expensive than Windows and did not give an chance to oither manufacturers in the market to use their OS, the Windows grew in popularity. The OS was much more cheaper to use and to apply on machines, and since was an open software there were more applications designed for it than they were for the Macintosh. economists maintain that a monopoly does not exist only because there is only one provider of a good or service. For example, in the Microsoft case, the Windows operating placement is enormously popular, but the potential for a competing firm to provide a similar product exists. In fact, Macintosh is a small but important competitor in the computer and operating system market. Linux has also emerged in recent months as a viable alternative to Microsoft Windows South-Western Is Microsoft A Monopoly? Web. 27 Nov. 2011. Whether the Monopoly is in the Public Interest There are two sides to the argument whether the monopoly has been in the public interest or not. The paper address both the points of contention and then understand why one arguments