Managerial Economics

Eco 500: Managerial Economics17 TW 3
Southern New Hampshire University, College of Continuing Education
Submitted to Professor Dr. Claire Starry
Sharon Wright
March 5, 2017
Instructors comments
page 5
Claire Starry:
or by creating barriers to entry, which was the way in which Microsoft was able to protect its OS business. Because of difficulties transferring programs and files across operating systems (at that time) it was harder for a new operating system provider to enter the market and compete with Microsoft.
Page 6
Claire Starry:
Source: Chart copied from …. be sure to correctly cite anything you copy into your paper. Otherwise, you are plagiarizing and taking credit for someone else’s work.
Page 8
Claire Starry:
not at that time. Google was not around or just in its infancy.
Claire Starry:
or the way Microsoft generates revenues. For example, what has happened to the distribution of revenues from various parts of its business? How was that beginning to change around 2000?

Page 10
Claire Starry:
you should have longer term trends. There is little change over a one year period. If you want to show this information, you should just show annual totals.
Claire Starry:
include source information, find data closer to the time of the case study.
11/12
Claire Starry:
source of data to create table.
Claire Starry:
source of data.
Page 13
Claire Starry:
where did you copy this chart from? You are plagiarizing–which can result in a zero on your assignment.
Claire Starry:
this is about 15 years after the time of the case study. What is your recommendation for what Microsoft should have done in the late 1990s?
page 14
Claire Starry:
where does Microsoft’s competitive or comparative advantage lie? Is its stronger in applications oriented toward businesses rather than consumers, while Apple products tend to appeal to consumers? How can Microsoft use its competitive advantage when evaluating investment opportunities?
Claire Starry:
this is today, not the version available in the late 1990s.
Claire Starry:
this is a good point. However, when considering Microsoft’s situation in the late 1990s, was it as evident that the company had a stronger competitive position in the business sector versus the home and personal use sector?
Claire Starry:
evaluate the operating systems of 1995 to 2000.

http://www.webopedia.com/DidYouKnow/Hardware_Software/history_of_microsoft_windows_operating_system.html

What was Microsoft doing to improve its competitiveness in this and other business areas? What new business areas was it developing?
Page 16
is this today’s set of goals of the ones that existed in 1995-2000
Claire Starry:
Apple has a different target market and product mix. It has emphasized production of products, such as computers, smart phones, tablets, etc., while Microsoft was focused on software with less emphasis on hardware.
page 17
Sharon,
I made comments on your paper.
You address many of the issues that Microsoft current faces and its current goals and product development. Unfortunately, this is not what is asked for in the assignment. You are asked to put yourself in the place of an economic advisor in the 1995 to 2000 period and develop recommendations for Microsoft. What was happening to the tech industry at that time and how was it affecting Microsoft at that time?

Introduction
Microsoft represents one of the largest suppliers of hardware and software produced from 1975-2012. Keeping market share with increased technology will continue to create an advantage. (Statcounter, 2017). The mission statement for Microsoft intends to enable people and businesses throughout the world to realize their full potential. The company considers its mission statement as a commitment to its customers. Microsoft represents one of the industry leaders in accessibility innovation and in building products that are safer and easier to use. The company also has a notable vision in which it relies to deliver its results to the customers. Accessible technology eliminates barriers for people and business. It seems convenient to make an economic analysis about the main brands produced by the Microsoft and how the company faces some challenges in the consumer electronics industry. Most importantly, it may seem appropriate for individuals to understand some of the recommendations that the company may implement in realizing its objectives as a multinational corporation.
The internet has made the information and intellectual property at the forefront of any company that is evolving within this industry. Information and communication will create a different economy which is based on the internet. Privatization of the internet is changing the way that commerce will be directed through regulation and globalization. It seems important for persons to understand some of the recommendations to realize the objectives as a multinational company.

Milestone One
Critical Element 1: Identification of the Issue
Apparently, Microsoft used its size and position to disadvantage of the competitor companies and maintains their low position in the market. Notably, during the time of its establishment in the consumer electronics industry, the internet browsers wars began. (Naughton, 2005). An internet browser represents software that makes it possible to access the web or internet. The way that they work is that they use a code; Java stands as an example of that code that tells the computer how to view the information, this interface then allows the web pages to be displayed on the computer. (Grauschopf, 2016) Netscape browser is one of the first browsers that allowed access to the web for most consumers. Indeed, when Netscape began, there existed no other competitor in the market at the time, and they had a 90% share of that market. It was new technology and it has changed the way in which the world now has access to the internet.
Interestingly, Microsoft responded with the creation of Internet Explorer. Netscape then offered the browser at no cost, which was essentially offering the code to the public without cost. This browser was able to run on many different platforms or operating systems. Internet explorer from Microsoft then bundled the browser with the software or operating system. (Palmer, 2009). Microsoft wanted to create and keep the market shares and revenue from being split among different competitors. Surprisingly, by offering the browser, which was embedded in the operating system allowed Microsoft to have an advantage, as they were the largest producer of computers. Technical advances will also create an advantage with the software they produce. Microsoft must keep ahead of these technology curves.
Microsoft has a problem associated with the barrier of entry into the electronics market. Such a situation provided Microsoft with an unfair advantage with the software and operating systems. The issue states that the windows system contains far too many different applications that would impose an unfair advantage to enter the market. Different companies wouldn’t have the opportunity to enter this software market with Microsoft. Other companies would not have compatible programs that would be similar to those from Microsoft. In order to enter the browser market on a comparable level would be unattainable.
Undoubtedly, one of the strategies that can be used to create a monopoly is the creation of a systematic way to limit competition or create ways to limit competition which they then can create a marketing and pricing strategy (Naughton, 2005). Again, by the development of Internet browsers, which act as the means to access the internet or the World Wide Web, Microsoft could lose its hold on the market.
In the mid twentieth century, there only existed a few operating systems in the world. As a matter of fact, there only existed a few operating systems that could serve the customers who use the available web browsers. The early operating systems could not enable customers to access the internet without the utilization of file systems. In this case, the operating systems could only understand the basic computer operations. The users of such web browsers could only access the internet by bookmarking popular directory pages. With time, Microsoft came into the market and rejuvenated the trend in establishing more robust operating systems.
In 1983, Microsoft announced Windows as the new operating system that would shape the trends in the market. Many customers realized the unique features of the product hence shifting their attention from other competitors who produced operating systems for the various computer machines. Apple, represented the only competing product in the market that went against Microsoft’s Windows. Apparently, with the changes in time, the product line transformed from a very simple interface which used separate codes. Microsoft wanted to compete with Apple and secure its position as the leading producer of functional operating systems in the United States and global market.
Chart 1

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