Microsoft

Topics: Microsoft, Operating system, Microsoft Windows, Monopoly, Windows 7, Windows Vista / Pages: 8 (1951 words) / Published: Dec 9th, 2012
(A)
Locate the firm in terms of its market structure and provide a summary of its key economic indicators: employment; pricing strategy; product range; markets; profitability.
The company that I am going to discuss in this case study is the IT firm ‘Microsoft’. Microsoft was originally founded by Bill Gates and Paul Allen in 1975. It is a public multinational corporation which is headquartered in Redmond, Washington in the USA. Its aims are to develop, manufacture, license and support a wide range of products and services that are related to computing through its various product divisions. Microsoft is an example of a well-known monopolistic power. A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. There is a direct relationship between the proportion of people using a product and the demand for that product. A monopoly can play a crucial role in the development or acquisition of market power. Over the years, Microsoft began to dominate the home computer operating system market MS-DOS in the mid-1980s, which was then followed by the Microsoft Windows line of operating systems.
Employment: Since 1998, Microsoft is one of only thirteen companies to be included on Fortune Magazine’s annual list of the ‘100 Best Companies to Work For’ every year since. Microsoft employs over 90,000 staff throughout the world. That is why Microsoft feels that they have a responsibility in creating a rewarding and enjoyable environment for them to work in. The health and well-being of their employees makes Microsoft different and unique. According to Microsoft, 83 percent of employees would recommend Microsoft as a great place to work. 92 percent feel they are treated with respect and dignity by their managers. 91 percent feel that Microsoft is a great corporate citizen around the world. Microsoft in Ireland employs around 1500 people.
Pricing Strategy: As we know, Microsoft has enjoyed its monopoly power throughout history, and

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