MONOPOLY

Technology and science fields improve very fast and represent a good opportunity for company expansion. Computer (hardware and software) had particularly become an important part of the technology improvement since its invention. The owner of the company named Microsoft had understand this and since its foundation the company had raised to the top range. Since then Microsoft has been considered to be a monopoly and to control a major part of the computer market. Giving details on the facts about Microsoft’s monopoly and discussing how the company cope with competition would be interesting in understanding how Microsoft persists as the most powerful company in the computer industry.

Since its innovation Microsoft had grown to become later on a monopoly in the computer industry. Of course Microsoft was at first a powerful company according to its innovative products. Now that the company is controlling the market, its power cannot be only attributed to its products but also to its marketing department. The Microsoft empire is well financed and is in measure to realise things its own way. Nowadays Microsoft possesses more than 90% for PC operating systems’ market share. The company is still growing and provides thousands and thousands of direct and indirect jobs to the nation. The company pursues since its beginning the same ideas and goals that suite itself interests. “Microsoft used several tactics to gain market share for its browser. Those cited… include giving the product away, dropping the Windows royalty price for computer makers in exchange for promotion of Internet Explorer and constricting Netscape’s access to distribution channels.(1)” This statement explains Microsoft’s basic strategy for its increasing market share of the computer industry.

Another strategy in determining Microsoft monopoly is its way of coping with competitors. In order to stay a monopoly Microsoft uses its power to harm smaller firms. “Microsoft has demonstrated that it will use its prodigious market power and immense profits to harm any firm that insists on pursuing initiatives that could intensify competition against one of Microsoft’s core products.(2)” This quotation resumes exactly how Microsoft company deals with competitors. Almost every computer company gets information or collaborates with Microsoft so if this company installs a new product competing with one of Microsoft, the giant will stop helping this firm. In other terms smaller companies have almost any other choice than doing Microsoft will in order to keep their privileges. Microsoft has been confronting a lot of negative comments on his way of coping with competitors. Smaller companies such as Apple said that “… Microsoft was attempting to limit the development of multimedia content…(3)” Some users also share the idea that Microsoft is wrong in its techniques because it may deprive people of knowing other products that may be interesting to discover. For example Microsoft told to Intel that the company would stop supporting Intel’s next generation of microprocessor unless Intel would discontinue developing platform-level software that supposedly competed with Microsoft one product. Intel agreed to stop in order to conserve Microsoft privileges. Some companies turned down Microsoft offer but they had to pay the fees of their decisions.

By controlling 90% of the market share and by having such money to invest Microsoft is considered nothing less than being a monopoly. Almost every other company has support from the multinational so Microsoft has also the control over the other firms’ production. Microsoft has often been blamed for its techniques in order to stay a monopoly. The company’s case has also been treated in court for the protection of other companies’ wealth. Microsoft is now a multinational with prodigious budget to invest. Unless one company would have more money than Microsoft, the major distributor will keep running the most profitable business nowadays.

Created By : Valérie Moreau