Micrsoft-Case-V1

Micrsoft-Case-V1 - Purpose of the case study This is to...

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Purpose of the case study This is to serve as an avenue for academic discussion and to elaborate how typical monopolies behave when threatened by the possibility of emerging competition. Microsoft is one of the world’s foremost and easily recognizable monopolist. Granted, the Strategies Used by Microsoft to Leverage its Monopoly Position in Operating Systems to Internet Browser Markets , an abridged version of the entire Microsoft antitrust case suffices as a practical exposure to behavior of the monopolist in the market. Although there are some legal connotations to this case, the detailed explanations to this are beyond the scope of this short class exercise. For the purposes of this paper, the case headline will be referenced as Microsoft antitrust case there on. Introduction: The Microsoft Antitrust Case gives an overview of the legal battle between Microsoft and Department of Justice, USA. In 1997, the DOJ sued Microsoft alleging that it forced computer manufacturers to ship Microsoft Internet Explorer Web browser with its Windows 95 operating system. The case discusses in detail, the proceedings of the trial, which spanned more than three and a half years. It also talks of the various options before DOJ and the chances of Microsoft being sued by private companies in the future. With a market capitalization of $466 billion, Microsoft was the global computer software leader and had emerged as the world's most valuable company. Microsoft's products included operating systems (OS) software for personal computers (PCs), server applications for client/server environments, business and consumer productivity applications, interactive media programs, and Internet platform and development tools. Microsoft's products were available in over 30 languages and sold in more than 50 countries. In the late 1990s, as Microsoft 1 was preparing to enter the new millennium, the company was fighting the anti-trust proceedings initiated against it by the US government. One of the main charges against Microsoft was that it was distributing its Internet browser software, Internet Explorer (IE), free of cost along with its Windows Operating System. Microsoft was a late entrant into the Internet software market. Netscape Communications, developer’s of the then ubiquitous browser the Netscape Navigator protested against Microsoft's move calling it an attempt to shut out other software that competed on a stand-alone basis.
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Case Facts Some analysts argued that the overwhelming market share that Microsoft held was a major impediment to innovations in the software industry. Microsoft was not only a leading player, but also the standards provider for the industry. By controlling the standards, the company was in a position to curb innovations. Microsoft illegally attempted to monopolize the market for Internet browsers (but
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This note was uploaded on 02/14/2010 for the course MGT 607 taught by Professor Payedines during the Fall '09 term at Stevens.

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Micrsoft-Case-V1 - Purpose of the case study This is to...

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