As a customer, I’d prefer the system of Red Hat (despite how the program look and operate) because obviously, it’s free of charge. Also because it releases the updated version every 4-6 months as the article mentioned. However, in my opinion, in term of business model, Microsoft, the monopoly, has a more sustainable business plan. The traditional way of employing high skilled programmers is certainly ensure the persistent development of the company. Moreover, from the customer’s point of view, even though, they have to pay a fixed software package in the beginning, but there’re no other expenses such as consulting like Red Hat. Moreover, the free technical support also make Microsoft has a higher position in the market.
In addition, statistically, Microsoft has outstanding profit-making revenue for the past years. Linux, on the other hand, has a possibility of getting bigger in terms of revenue. Still, as I have said, volunteer programmers are not very reliable. Not only the success is terms of revenue, Microsoft has a better brand image because it has been in the market for so long and has so many loyal customers globally. Even though, Red Hat is trying to differentiate by focusing more on the small business, but Microsoft’s strategy is still ahead of it because it provided its service/product to a larger based customers.
I’m sure that Red Hat isn’t the first competitor Microsoft has ever had, but it has overcome all of them. Because of all the reason mentioned above, Microsoft will remain the Monopoly in the market for still quite a long while. Michael E. Porter
Michael E. Porter is a leading strategist who has a comprehensive understanding about economy and economic development of a nation. He invented the Competitive Strategy called “Porter’s Five Forces Model”. He is now currently the Bishop William Lawrence University Professor, based at Harvard Business School. Professor Porter is generally known as the father of modern...