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The Biggest Threat to Microsoft

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The report also included various facts about Microsoft and how the company enjoys so much power in the markets. It also mentioned that with the amount of power the company held in terms of price, the company could charge a price for the Windows which could be much higher than that of its competitors. Also, it could do so without losing out on customers to the competitors, thus proving that the company did hold a monopoly in the relevant market. There are however three main facts that clearly show that the company is a monopoly, a) the share of Microsoft for the Intel-Compatible PC operating systems is very high and stable, b) the market in which Microsoft mainly works and functions has high barriers of entry, c) due to the high barriers of entry the customer of the company find it difficult to find an economical and commercially viable alternative (Wilcox, 1999).

These in a way prove that the company has a monopoly in the markets and also the following information allows proving that the company does so have a monopoly.

It has been noted that the company does possess a dominant, persistent and a constantly increasing share of almost every market worldwide. Also, the company holds up to almost 90% of the market when discussing in terms of the Intel-Compatible PC operating systems. It has also been noted that this percentage has been increasing over the years and has even reached 95%. This figure has been rising over the years and even with the entry of Apple Mac OS, the company still stands with over 80% of the market. Microsoft has taken a number of steps to ensure that the company remains at the top of the industry (Microsoft Findings, 1999).

The company’ s size and technology have played a very important role for the company to drive the global economy (Wilcox, 1999). Microsoft has very correctly used the barriers for entry into the market. The market share of the company has allowed the company to use the barrier of entry into the market.

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