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Case Study of Microsoft

Case Study of Microsoft

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Published by Rahim Ejaz

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Published by: Rahim Ejaz on Feb 02, 2010
Copyright:Attribution Non-commercial


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Question No. 1: Is Microsoft guilty of being a monopoly? Explain.Answer:
No, Microsoft is not guilty of being a monopoly. The reason isthat Microsoft is enjoying the monopoly in the market. Although the DOJand judge Jackson has declared that that Microsoft has exerted monopolypower in the market. Now the market share of Microsoft is 95%. Microsofthas effectively argued that they are just been successful and competitive.
Question No. 2: What are the major issues in this case? How havethese issues evolved?Answer:
The major issues are as fallows.1.Monopoly2.High barriers to entry3.Lack of alternatives4.Threat to partners5.Monopoly through pricing6.Monopoly through technology
Microsoft has dominancy in the market and DOJ has also declaredthat Microsoft has monopoly.
2.High barriers to entry
Microsoft has over 70000 software applications. So it is difficult foranother company to enter in the market.
3.Lack of alternatives
Software developers produce software that is compatible only inwindows and windows has largest market share.
 4.Threat to partners
Several companies transacted business with Microsoft and Microsoftpractices intimidated and threaten because companies claim that
Microsoft force them to close their software development that arecompeting Microsoft applications.
5.Monopoly through pricing
Microsoft has set prices that are very low in the market. This is alsoa reason of monopoly.
6.Monopoly through technology
By using the latest technology and software, Microsoft also exertsmonopoly in this way.
Question No. 3: Identify the stakeholders and their stakes in thiscase?Answer:
Media, PC users, Customers, Partners and the Competitors arethe stakeholders in this case. Media consists of newspapers, magazines,television, radio and internet. Media has provided full coverage of thiscase. PC users and customers are the most important stakeholders. Theyare satisfied with the Microsoft applications. Partners and the competitorswould be affected by the outcome of the case.
Question No. 4: Do you agree or disagree with the legal and courtdecisions made to date in this case? Explain.Answer:
yes, we agreed with the court decisions that are made in thiscase. We believe that Microsoft has exerted monopoly and this act isunethical. Every company should be given equal rights to enter in themarket. DOJ has also declared that Microsoft has monopoly in the market.

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