Topic > Microsoft Case Study: Windows Vista - 857

Over six billion dollars spent to produce one of the largest technology projects in history; Windows Vista. In 2007, Microsoft finally launched its new operating system years behind schedule and with billions in budget. This essay will cover aspects related to Microsoft's agreements with the development and sale of Windows Vista in a monopolistic market and the effects it would have if it were in a competitive market, it will discuss why PCs are in a more competitive market than to operating systems and decreased profits. of the computer chip giants of the egolytic market; AMD and Intel were created. Being a monopoly, Microsoft makes a huge profit from resellers who purchase Windows Vista at a wholesale cost and mark up the price to make a profit, even though the production time of the latest software was not managed efficiently, as it was late for years. Microsoft created a monopolistic market, which is when “a company is the exclusive seller of a product with no close substitutes” (Principles of Economics, Joshua Gans, Steven King, Robin Stonecash, N. Gregory Mankiw, 2012) and created a highly efficient for selling its software, as demonstrated by the 20 million Vista licenses sold within the first month of sale (Windows Vista Debuts with Strong Global Sales, Microsoft, 2007). However, they sell their products to a large number of companies, from small businesses to large franchises. This means that there is a perfectly competitive market trying to sell the most copies. By allowing more companies to resell Vista, Microsoft will be looking at higher profits in the short term, but lower profits in the long term, due to companies competing with each other, lowering the price at which they sell the software. As more and more companies sell this product… half the paper… billions over budget and years behind. Since Microsoft is a monopoly, it created such a change in the market with the introduction of its new software that a hardware upgrade was required for the computers to function properly, causing PC manufacturing costs to increase. Therefore, this could cause a decrease in profits for companies selling these new computers, demonstrating how a change in one environment can cause drastic changes in all related markets. Works Cited Windows Vista Debuts with Strong Global Sales, Microsoft, 2007 Principles of Economics, Joshua Gans, Steven King, Robin Stonecash, N. Gregory Mankiw, Pg 324, 2012Principles of Economics, Joshua Gans, Steven King, Robin Stonecash, N. Gregory Mankiw, Pg 67, 2012Competition Matters, Federal Trade Commission, Pg 2, 2014The Tech Sector on the Threshold of the New World Order, Kevin Allison Chris Nuttall, 2007