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Oligopoly of Microsoft and Apple - Term Paper Example

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The paper “Oligopoly of Microsoft and Apple” is a complex attempt to investigate if  Microsoft and Apple are really competing with each other in terms of sale and marketing. The author believes that these IT market leaders are really trying to get a market share through their intense competition…
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Oligopoly of Microsoft and Apple
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Download file to see previous pages Interdependence between these large players is another unique aspect of an oligopoly. All moves pertaining to pricing, investment, and advertisement are closely monitored by each player. Economists usually use a game theory model to demonstrate the workings of such a market. In lieu of the description above we move more towards the topic under study. The software industry has been witnessing an eternal rivalry in the form of competition between two of the giants, Microsoft and Apple. These two legendary companies have engaged in advertisement warfare internationally and flooded the PC market with countless software. Both are the pioneer companies in the technological world. Since the incorporation of these two brand names, there has been a constant rivalry between both Apple and Microsoft. Just a year older firm Microsoft, initially had an edge over Apple. It was in the late 90’s that the game took a turn and Apple gained that edge that was previously maintained by the Microsoft. But this edge was mainly in terms of the market value. The history of rivalry can be traced back to the foundation of these two extraordinary firms.
Microsoft is an American multinational and a public listed company. The firm was established on April 4th, 1975. The company started operating as a monopoly as no other competitor was present to compete with the products and services that were being provided by Microsoft. Microsoft develops and manufactures computing products and only that it also licenses a wide array of products and services related to computing. The main achievement of Microsoft was that it dominated the home computer operating system by developing a line of operating systems. It was on these operating systems that the whole computer used to work. MS-DOS was an operating system developed by Microsoft which was followed by the famous Microsoft Windows. Microsoft office was another achievement of the firm. But it was soon enough that the competition emerged and Microsoft had to diversify its product line. During recent years Microsoft entered the video game industry by developing Xbox. It also diversified into the consumer electronics and the digital services market. Windows Phone OS and MSN are examples of its diversification into the consumer electronics and the digital services market. ...Download file to see next pagesRead More
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