Microsoft : Microsoft Search Case

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Michael Spiotta Dr. Heppard Microsoft Search Case Study September 29, 2014 1. Microsoft has been fighting competitors in the Operating System fields as well as the Search field for many years. After Apple launched its new Macintosh computer, Microsoft came out with its first production of Windows which had a graphic user interface. Microsoft had 95% of all OS on individual PC’s in the 2000’s where apple only had about 2%-3% (Rivkin 2). A new venture that Microsoft was working toward was application software where the produced Microsoft Word and Excel. At first these two applications where not very popular on PC computers because WordPerfect and Lotus 1-2-3 where the main applications being run. Microsoft’s solution to this competition was…show more content…
Microsoft had to split their operating system company from the rest of their organization. Another action Microsoft took was its relations with Java. They licensed a version of Java that worked mainly with windows where they tried to drive out the competitors and in later years they didn’t even allow Java to work with Windows XP (Rivkin 4). Microsoft tried to basically kill Java and with this the producers of Java sued Microsoft. Last, Microsoft took actions toward their competition in open-source software: Lunix. Microsoft responded by opening up into own server OS code like Lunix did. They actually sold stripped-down versions of the code to emerging economies and they also set up a lab that’s sole purpose was to find competitive weaknesses in the Lunix OS (Rivkin 5). The patterns I see with Microsoft’s reactions to competition is that they rely heavily on the fact that they are leaders in the field of operating systems and they use this monopoly as leverage on what they give out to their consumers with their “bundling capabilities” (Rivkin 4). In the past I believe they have been successful against competitors even though they have gotten into legal trouble while doing it. This is because even after the law suits they still remained ahead of the pack in market shares. 2. Google’s competitive advantage was that it used a cost-per-click approach with advertisers. Google’s philosophy with ad technology is what gave them the advantage. They did not allow an advertiser to
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