Microsoft vs. DOJ :: GCSE Business Marketing Coursework

Microsoft vs. DOJArguments of the DoJ (the sporting paper)1. Microsoft and its Monopoly PowerMS monopoly origin is in personal computer operating systems. A PC operating system as you all(prenominal) know controls the interaction of the different parts of the computer. It creates files, organizes the computers keeping and creates a platform for applications.The operating system is indispensible to the computer for this reason. Maybe that changes as technology evolves however right now a computer without an OS is nothing but a box of inert hardw atomic number 18. MS today ships 97% of PC OS that are installed by computer manufacturers. suit of clothes law defines monopoly as beginning at about a 70% share of the market. just now this yet when isnt illegal in lever to superior products, service or mere luck. Nor does market share alone necessarily imply monopoly power. For example a manufacturer might generate 100% of knickers on the market. But if there are opposite pants manufacturers who are able to turn their production into knickers, the one and only knickers producer wouldnt be able to charge more(prenominal) than a emulous price or exclude rivals from his market.Speaking of this pocket-sized example its now clear what monopoly power means it is the power to control prices and exclude competition. MS has and still exercises, both form of monopoly power. It charges supra competitive prices and use tactics that eliminate rivals. And not because MS are superior to others and more beneficial to the consumers. No, not at all, MS uses predaceous tactics whose sole purpose is to destroy its rivals.MS often has denied that it posesses monopoly power but their arguments are quite feeble.A MS spokesman express that the market is highly dynamic and that there are only first barriers to enter the market, especially for fringe firms. But this is untrue for the means of competition. on that point might be a lot of sore technology but the barriers MS d eliberately put up made it impossible for bran-new market entry. The result is that MS can charge higher than competitive prices without a loss of market share.Another argument of MS is that its monopoly power is defeated by ist need to compete against its admit installed base meaning that MS has eg now to compete against win 95.But this is another partly untrue argument because most consumers think of a new OS only when they want to buy a new computer and replace their old one.