Microsoft Paper

2105 Words Oct 29th, 2010 9 Pages
Microsoft Case
Team 7:

Executive Summary

Microsoft (MS) is a multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices. In the mid 1990’s, Microsoft held the monopoly in the production of Operating Systems (OS) for personal computers (PC). When their monopoly was threatened by Netscape, MS began bundling the Internet Explorer (IE) web browser with Windows, using cross-promotional deals with internet service providers (ISP), and prevented PC makers from customizing the opening screen showing Microsoft. These actions, which some view as illegal and unethical, dissolved any competition, raised the barriers of entry and inhibited
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to This browser would threaten to remove the application barrier which enabled Microsoft’s monopoly position on operating systems for many years. The software application - internet browser allows users to retrieve, present, and pass over information resources on the World Wide Web and contains Applications Programming Interface (API) which allows programmer to write other application programs. on it. In addition, the development of new programming language “Java” by Sun Microsystems allows programmer to write applications in it which can be run on various operating systems. Both the twoJave a Netscape Navigator innovations corporate use each other; because Java applications are especially written for the internet and the Netscape browser was a primary distribution channel for java applications. Therefore, the developments of the Netscape browsers along with the java programming language enables software applications to run across operating systems reducereducing Microsoft’s competitive strategy and threaten its monopolisticy position.

2. What is MS’s pricing and distribution strategy for IE? How does this compare to Netscape? Why would MS pursue this pricing strategy?

To win the “browser war”, MS exploited its pricing and distribution strategy for IE.
First, MS tied IE to Windows 95 and potentially its successors. As MS's Christian Wildfeuer wrote in 1997, “[It would] be very hard to increase browser share on the merits of IE 4 alone. It will be