Tuesday, May 19, 2020

ECO 365 week 4 Differentiating Between Market structures

Differentiating Between Market Structures Leslie Maxwell ECO 365/Principles of Microeconomics May 25, 2015 Ronald Merchant Differentiating Between Market Structures Microsoft is the software giant responsible for bringing Windows operating system to the PC (personal computer). Microsoft is also a known and well respected company in the global market. The tech giant has dominated the computer industry since 1981. Due to the nature of such a huge company, Microsoft has its hands in multiple markets. Microsoft currently competes in file hosting, software, operating systems, and gaming consoles. Unfortunately, each of the afore-mentioned markets differ from one another. For the purpose of this paper, the market that†¦show more content†¦One competitive strategy that Microsoft may consider would be lowering the price of the software. Microsoft’s current OS average cost is $200 but can be as high as six to seven hundred, while Apple currently offers theirs on average at about $50. Lowering the average cost of the OS could increase demand as well as sales (â€Å"Calibex†, 1999-2015). Another competitive strategy that could be considered would be increasing the target audience. Microsoft has consent to make a bold play for the workplace while leaving the school market open for Apple. The idea was that if adults were using Microsoft OS at work all day, then they would be more likely to purchase the OS for their home PC. This was a good strategy in the beginning but may need to be changed for future sales. Microsoft will have major competition with Apple over the next five years because schools of all levels are expected to switch from computers to iPads. This may possibly hurt Microsoft’s future sales because as the students enter the real world they will continue to depend on Apple for their future computer needs (Hughes, 2011). The final Competitive strategy Microsoft may consider would be the introduction of a differentiation strategy. 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