Within this essay, Microsoft Windows’ monopoly position and domination over other industries in the sector will be discussed, so as its behaviour against any competition and the provision of products and services when they are needed the most by consumers, while considering that researches carried out, often updates in software and upgrades in the system sector keep peoples’ interest and buying capacity at high rates. Furthermore, some arguments are going to be presented regarding Microsoft’s ability to supply and satisfy its customers’ needs.
Microsoft is the leading and the most successful computer software producer worldwide, formed by the words microcomputer and software, and incorporated in 1981 by Bill Gates and Paul Allen. Microsoft prevailed in the software market when Microsoft Windows operating system was created in 1983. Windows’ success was due to its easy handling and user friendly operating systems, more graphical, easily modified by user’s preferences and attracting in comparison to other corporations in the sector. It is worth noting that Windows operating systems work by simplifying the operations performed in order that users can easily access it by tools, options and pictures provided. Windows estimations of 90 per cent preference of usage with personal computers nominate it the most dominant operation system producer, eliminating any attempt of competence (SearchWinIT, 2002).
Due to its high costs, great expertise needed on the sector and entry barriers quite high for a new firm to enter the operation system industry, Microsoft Windows are considered to be in monopoly, in which price is set according to Microsoft’s gains in sales and income rather than other firms’ competitive prices, as long as it is not effected by any, maintaining leadership in quality and demanded products. Prices in such structure are most likely to be higher than markets in perfect competition, and monopoly is