Is MS’s market share so massive that it can behave like a monopoly?
According to the case study, Microsoft’s world market share is so massive that the company behaves like a monopoly firm. The article indicates that Microsoft manages 90 % of all operating systems installed on computers. Similarly, the company has expanded its market share in word processor, computing services, and programming tools. Over the last few years, the company has dominated over the computer market.
Through its dominance, the company has exhibited anti-competitive behaviors in the past and in the present. For instance, Microsoft has influenced some organizations to use its programs and operating systems with the aim of gaining a strategic position in the world market. Through this, Microsoft has suppressed the growth of potential and veteran rival firms. In general, the company has not only endangered the existence of its rival firms, but also manipulated its business operations to suit its selfish interests at the expense of the consumers’ interests.
Is MS a good example of dead weight loss to its economy?
From the case study, it can be concluded that Microsoft has become a dead weight loss to its economy. Its operations and anti-competitive behaviors have created artificial scarcities in the computer market. During the early 1980s, there were few computer programmers. Currently, numerous computer specialists and programmers develop computer programs and applications similar to the Microsoft’s programs. These specialists’ innovations cannot be economically viable owing to the current monopoly acts exercised by Microsoft Corporation. By suppressing these innovations, Microsoft has undermined the equilibrium between the demand and the supply of computer programs to maximize on its returns. In this regard, the company has acted as a deadweight loss to its economy.
Do you agree with Jackson or not?
According to the case study, Jackson argues that Microsoft actions have harmed the consumers, and acknowledges that the company is enjoying excessive monopoly powers. In my opinion, Jackson arguments are true. In the last decade, Microsoft dominance in the computer market threatened and forced some of the rival firms out of the market. Owing to this, consumers have been denied access to other potential computer services and programs.
It is widely believed that Microsoft abuses its monopoly powers to ensure that companies coming up with services and products better than its do not survive in the market. Equally, Jacobs’s arguments confirm that Microsoft’s dominance in the market has restricted other innovators’ technologies from entering the market. Through this, consumers may never get the chance to access viable innovations from other entrepreneurs.
Study the recent industry trends and build your own logic on the probable monopoly power of MS at present.
In the recent past, Microsoft has expanded its innovations leading to the creation of more competitive services and products in the computer market. Currently, the company has spent massive resources towards the creation of its web browser. Microsoft’s web browser, Windows Explorer, is integrated into its latest windows versions. This implies that its users are no longer required to purchase other web browsers. By doing so, the company has forced its customers to use its web browser. Therefore, the company initiative threatens the existence of other web browser companies who offer their services at a fee.
Recently, Mozilla accused Microsoft for restricting its customers to choose the browsers of their choice. Mozilla argues that Microsoft’s initiatives in the web browser have reduced its market sales, decreased competition, and reduced innovations. In my opinion, the company should be held responsible for abusing its monopoly rights to allow entrance of other valuable innovations in the computer market. Similarly, the government should enact appropriate laws to ensure that emerging firms are protected from unfair competitions.