Government and Business (ECONOMICS) Case Study Example | Topics and Well Written Essays - 2000 words

Government and Business (ECONOMICS) - Case Study Example In order to fully understand and explore the question of whether Microsoft has the monopoly over the personal computer operating system or not, one must understand the dynamics behind the market structure of monopoly besides understanding what anti-competitive practices have been employed by Microsoft to capture the market and gain the leading position in operating systems market in the world. Further, it is also critical to understand that the question of Microsoft monopoly shall also be viewed in a broader perspective of antitrust laws and regulations and the perceived role of government in creating legislative environment which discourages such practices. This paper will attempt to understand and explore the question of whether the Microsoft has the monopoly power in the PC operating systems market in the world. And if yes, did Microsoft maintain this through using anticompetitive practices. "Microsoft Corporation develops, manufactures, licenses and supports a range of software products for computing devices." (NY TIMES). This description of Microsoft virtually covers everything for which the firm is famous for. Technically, Microsoft is a software developer which develops different software such as operating systems to run the personal computer machines, Office suites including helping to accomplish different tasks such as word processing, spreadsheet analyses, presentations etc. It is however, critical to mention that Microsoft has successfully developed itself as a firm with diversified portfolio of software as well as hardware products. It not only has huge presence in software market but also manufactures and develops Xbox- a gaming portal and Zune- a new MP3 player. Established in 1975 as Microsoft by Bill Gates and his friend Paul Allen, the new company was initially established in order to provide DOS based operating system to IBM's newly developed personal computer. Microsoft developed its first Windows bases operating system during 1983. This new operating system was potentially aimed at removing the deficiencies of the old MS- DOS and provide a more flexible and robust operating system which can cater to the needs of different users according to their own requirements. It is critical to note that at the time of introduction of this new Windows based operating system which worked on the Graphical User Interface (GUI) basis, Apple Computers was already in the market and was developing its own operating system to be sold with its own brand of personal computers. As the market for personal computers market soared, the demand for the Microsoft's operating system increased because of its relative ease and platform free nature which allowed Microsoft Windows to run on any personal computer machine. The era of 1990's saw an unprecedented growth in personal computers market and with the introduction of Microsoft Windows 95, Microsoft virtually started its journey towards dominating the operating systems market in the world. The rapid increase in the demand for personal computers and relative ease and inexpensive nature of MS Windows software made a very explosive combination for users to get a comprehensive package. What is however, crit