Current Market Conditions � PAGE �6�
Current Market Conditions
University of Phoenix
ECO 361
Team B: Sara Leon, Charles Hill
Timothy Jeffcoat
June 4, 2007
Microsoft Current Market Conditions
Microsoft is the leader in software, and services that assist people and businesses capture their full potential. Microsoft is leading in the operating system business. Microsoft has been such a powerhouse it has been one of the few corporations of becoming a monopoly. Although Microsoft was convicted of breaking the antitrust laws in the US it has still maintained its leadership in the technology industry. This paper will discuss Microsoft's current position in the market.
Market Structure
Microsoft's market share in Personal Computers operating system is typical of a monopolistic market power. Microsoft Monopoly power is an example of market failure which occurs when one or more of the participants have the ability to influence the price or other outcomes in some general or specialized market.
Microsoft Building
Microsoft and Flickr
Microsoft Office Excel 2007The United States v. Microsoft case concerned the allegation that Microsoft illegally exercised its market power by bundling its web browser with its operating system (Wikipedia, 2007). The former company is a monopoly; the latter is not, but have been so accused and convicted in accordance with antitrust legislation.
Impact of New Companies entering the market
The competition between Google, Yahoo and Microsoft in the emerging mobile search market is the latest struggle to gain market share. The mobile search market is the most current in the emerging market it is up for grabs as the vendors experiment to develop useful layout designs and search algorithms. "Web activities previously limited to PCs. Informa Telecoms & Media, a division of Informa PLC, expects spending on mobile phone ads to reach $1.5 billion this year, double its 2006 level, and to hit $11 billion by 2010.