A GLOBAL MONOPOLY: MICROSOFT
Microsoft owns 90% of the market share. Its size allows it to use great economic and research strengths to be able to develop products (and guarantee a large market share in them).
The reasons for this are that Microsoft has very low average costs, allowing them to undertake new developments and undertake the research tasks which leads to their mass production and dominance of the market.
There is a feeling of security with Microsoft. It produces so many products and is such a staple software that many customers would rather stick with them because they feel that “quality” is guaranteed.
However these are natural “innocent” barriers to entry. There are certain practices that Microsoft does that purposefully keeps competition out of the market.
This can be seen when Microsoft branches into new areas of the market even though they may not make profit (although they still make enough from applications such as windows to keep this up) just so that they can keep competition down across the board and remain dominant, which will ultimately lead to more profit overall.
Its dominance in computing software throughout the world allows Microsoft to venture into the internet. This allows Microsoft to make software changes that change web browsers and servers so that more people use Microsoft for the internet as well. This will also boost Microsoft’s revenue from advertising online and with increasing Microsoft interests in financial transactions online there will be more dependency on Microsoft for sensitive information and online sales.
This will increase Microsoft domination of the market and ensure that as time goes by more people and business will become reliant on the software and services that Microsoft provides securing its future as a global monopoly.
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