...The Microsoft Case Investigation into Microsoft began in 1991 by the Federal Trade Commission under suspicion that the company broke anti-trust laws and engaged in coercive activities prohibiting competitors from entering or participating equally in the market. “The plaintiffs alleged that Microsoft abused monopoly power and monopoly market structure on Intel-based personal computers in its handling of operating system sales and web browser sales “(The Microsoft Monopoly, 1998). The primary concern of the Federal Trade Commission and eventually, the Department of Justice, was whether Microsoft should be able to bundle its own web browser, Internet Explorer with the Microsoft Windows operating system. In 1998, The Department of Justice brought an antitrust suit against Microsoft. The suit included “twenty U.S. states suing Microsoft for illegally thwarting competition in order to protect and extend its software monopoly” (United States v Microsoft). In the end, “Judge Thomas Penfield Jackson ruled that Microsoft, with its Windows program, possessed monopoly power over a particular kind of operating system” (Rothstein, 2001). Later, the ruling was over-turned in the D.C. Circuit Court of Appeals and in September 2001, the DOJ announced that it was no longer seeking to break up Microsoft as previously ordered by Judge Jackson. It would instead impose less of a penalty. I agree that this bundling allowed Microsoft monopolized success over other browsers attempting to compete...
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...Management Preparatory Assignment Case Study 2 1. As Steve Ballmer, you are faced with managing consumer perceptions of Windows 7 in the wake of the public relations failure of Vista. In devising the advertising campaign, what would the ad message focus on during the launch of Windows 7? Consider the following questions as you formulate an answer. Should special consideration be given to restoring negative perceptions of the Microsoft brand? Should marketing focus on the features and qualities of Windows 7, or address its improvements over Vista and it's superiority to a Mac OS in the advertising campaign? Should Microsoft highlight Windows 7's new features or its usability? 2. In terms of pricing, should Microsoft vary the price for those upgrading their current operating system from XP or Vista versus those purchasing the operating system on a brand new computer? 1. As it is described in the case, Microsoft was facing major difficulties in the wake of the launch of Windows 7. The main problem was that the previous Operating System, Windows Vista, was a commercial and critical failure, causing Microsoft to constantly losing Market shares. Microsoft had to understand what made Vista such a failure in order to recover from the previous debacle. One of the main mistakes made by Microsoft was thinking that innovation (numerous new features such as highly-hyped Aero) brought by the new system would easily outweigh the potential losses XP system. Only, Microsoft did not foresee that losses...
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...The Microsoft Case Microsoft was investigated for antitrust behavior after a U.S. court of appeals upheld a lower court’s finding that Microsoft used a series of illegal actions to maintain its monopoly in Intel-compatible PC operating systems (95 percent market share). (McConnell, 2012). US District Judge Thomas Penfield Jackson against Microsoft Corporation is a major blow to the largest US software company. Jackson upheld virtually all the contentions of the antitrust division of the Department of Justice, which brought suit against Microsoft for anti-competitive and predatory practices. Judge Jackson's finding of fact is unequivocal about Microsoft's crude and deliberate efforts to use its monopoly position in PC operating systems to gain control over other areas of the lucrative software industry, especially those related to the Internet and e-commerce. As the Wall Street Journal noted in its news report, "the judge came away convinced that the software company has behaved more like a thug in its dealings with competitors and customers." (McLaughlin, 2011). I do agree that Microsoft was trying to gain monopoly power in the computer software industry. Evidence that supports this are supported by the following facts: 1) During that time, Microsoft developed an entire range of products under the Microsoft Office that would cater to the various requirements of professionals in every field - Microsoft Excel, Microsoft Word, Internet Explorer, Windows Media Player, Windows...
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...The Microsoft Case November 17, 2011 Week 3 Paper Introduction…………………………………………………………………………...02 The Case...……......................………….………………….………………………… 02 Conclusion………………………………………………………………………....... 03 References………………………………………………………………………....... 04 Introduction The purpose of this paper is to discuss the Microsoft Monopoly case and how it relates to what we have been learning in our Economics class. The Case In 1999 Microsoft was accused of violating the Sherman Act, which was passed in 1890 with the purpose of maintaining competition in the marketplace by opposing the combination of entities. Microsoft was positioned as the largest publisher of operating systems in the world and this was their third anti-trust trial in the United States. The charges of the alleged monopoly were whether Microsoft were allowed to bundle Internet Explorer with their Operating Systems. The major theory was that they were going to turn into the sole internet browser supplier because it came bundled with every new personal computer and every Microsoft operating system, causing a monopoly. By definition this simply is not the case as Microsoft were not the only producers and sellers of internet browsers, nor was there any blocking of new entries to the market. There were also plenty of close substitutes back in 1999, with the internet browser Netscape actually far more popular than Microsoft's Internet Explorer. There was a perception by Microsoft's competitors...
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...Strategies Used by Microsoft to Leverage its Monopoly Position in Operating Systems to Internet Browser Markets Case Summary Microsoft is the world’s largest supplier of computer software. It has dominant market share of PC operating systems with its Windows system. High barriers to entry prevent significant competition in the operating systems market. The primary barrier is that a large number of software programs must be able to interface with any operating system to make it attractive to end users. It would be extremely difficult for any competitor to create a new operating system and create or encourage the creation of completely new software to compete with Windows. However, the development of Internet Browser programs, specifically Netscape, threatened this barrier, by allowing software developers to create software that could run using the browser software as a platform for the program. Therefore, software could be created that could still be used with Microsoft Windows, but would not have to be. Microsoft recognized this development as a threat to its operating system monopoly. Initially Microsoft attempted to divide the market with Netscape, but Netscape refused. To defend its operating system, it set about to overtake Netscape with its own internet browser, Internet Explorer. To defeat Netscape, Microsoft leveraged its operating system monopoly to gain market share in the internet browser market. Microsoft forced computer manufacturers to include...
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...Microsoft Monopoly Ali Faisal alifaisal83@hotmail.com Devry University Content Introduction…………………………………………………………………………...page 2 Case Trail and Allegations ........………….………………….………………………… page 2-4 Conclusion………………………………………………………………………....... page 4 References………………………………………………………………………....... page 4 Introduction Microsoft is of the largest organization in terms of making software's for small, medium and large businesses and for end users as well. Microsoft made such well know software's like MS-office, windows Xp, vista and win-7 and some hardware such as mice, keyboards, etc. there are also varieties of Server operating systems, programming software's like Visual basic and Dot.net offered by Microsoft that are implemented all over the world. Microsoft was being investigated first by the Federal trade commission for various Anti-trust allegations during 1991 till 1994. Unfortunately, Federal trade commission(FTC) were failed to win the case against Microsoft. Allegations on Microsoft There are number of allegations on Microsoft, that the company is trying to gain all market share, trying to create monopoly in the software industry, restricting consumers and vendors to use Microsoft products...
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...Introduction Microsoft Corporation (NASDAQ: MSFT) is an American multinational corporation headquartered in Redmond, Washington that develops, manufactures, licenses and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues.[3] It is also one of the world's most valuable companies.[4] Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.[5] As of 2012, Microsoft is market dominant in both the PC operating system and office suite markets (the latter with Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via...
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...United States v. Microsoft is a question of whether antitrust laws were violated. Microsoft was being accused of having a monopoly, which is illegal all by itself, but also of employing anticompetitive techniques to keep the competition at bay. Microsoft would use techniques or threats against any company that threatened to take consumers away from Windows. One example was when Microsoft threatened to end Compaq’s license for Windows 95 if they did not restore the Windows and MSN icons back to their original positions. Microsoft was using licensing for the Windows operating system as leverage to get other companies to act accordingly. This was only one of the various ways that Microsoft controlled the market. In response, Microsoft said that...
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...Microsoft Corporation International Business BADM 455, Section 1 Peng Wang (Nath) October 01, 2011 Catalogue Summary ................................................................................................. 1 Introduction............................................................................................................. 2 SWOT Analysis.......................................................................................................... 5 Global Market and Challenges................................................................................. 7 Industry Analysis…………........................................................................................... 9 Competitor Analysis…………...................................................................................... 10 Recommendation…………………………......................................................................... 12 Conclusion…………….................................................................................................. 13 Reference...........................................................................................................14 Summary Introduction of Microsoft Corporation Starting in 1975, Microsoft corporation was established by Bill Gates and Paul Allen. Depending on MS-DOS, Microsoft rose a lot in home computer operating system market in 1990s. Later, used Microsoft Windows control the computer operating system market. Relying...
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...CASE REPORT Executive Summary Our team recommends that Microsoft develop the software for non-gaming set-top boxes and partner with a hardware company. This option is likely to produce the greatest ROI for Microsoft because Microsoft’s core competency is developing operating software and this option carries the least amount of risk. Background The consumer demand for the ability to seamlessly integrate and connect devices and data that they use in their daily life is growing rapidly. The ability to connect mobile phones, television sets, tablets, and personal computers has provided consumers with an unparalleled opportunity to the access to information (I), communication (C), and entertainment (E), collectively known as ICE. The struggle amongst Microsoft and archrivals like Apple and Google is to develop the “must-have” product that would redefine the way content is consumed in the living rooms around the world. While streaming content via game consoles has been on the rise, the introduction of streaming content via non-gaming set-top boxes has become increasingly popular. Microsoft must choose how to position itself in this rapidly changing market so that it does not render itself irrelevant and so that it can capitalize on this shift in the way that content is being consumed. Ultimately Microsoft can make one of four choices. Microsoft can: (1) keep the status quo, (2) develop the software for non-gaming set-top boxes and partner with a hardware company, (3) develop...
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...Microsoft/Intuit Synergies There is a great deal of synergy between the Microsoft and Intuit that would be beneficial for Microsoft if an acquisition were to take place. Intuit’s position in the personal finance market would lend a considerable benefit to Microsoft given their difficulty in that market. Microsoft would also be able to take advantage of the similarity in their products and use their considerable marketing advantages to enhance the revenue created by Intuit. In 1994, Bill Gates envisioned an emerging future market as an online marketplace to handle consumer needs. In order for Microsoft to develop its capability to control its own destiny in online entertainment and commerce, it needed to acquire additional core competencies of “cable and/or telephone networks, on-line networks, electronic shopping networks, video on demand, and business networks.” Microsoft needed to evaluate what competencies would be developed in house and which would be acquired in an effort to most efficiently use its human resources and financial assets. With Gate’s vision of the future online consumer, Intuit’s product line could be a great benefit to Microsoft being able to position them as a leader in that market. In terms of market share in the personal finance/checkbook software market, Intuit had a 69% share in units and an 85% share in value. This is in comparison to a 22% and 7% share for Microsoft respectively. Bill Gate’s vision of the future relies heavily on personal financial...
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...The Microsoft Case Microsoft was being investigated for antitrust behavior because the company was suspect of violating the Sherman Act and obtaining monopoly power in the PC market. By doing this accusation the court had established that Microsoft Windows system was used on over 80% of the PCs that were Intel-based. To have such a higher percentage the pure monopoly was created by controlling the entire market of the product. This situation had been occurred because the firm had the patent of the product and the exclusive license to sell it. Windows was created to be an individual system of operation, and by integrated it with internet explorer, it created high barriers of entry into the PC market, by blocking their competitors Netscape to become a platform that will compete with Windows. Microsoft was also accused of anticompetitive practices by limitation the use of other companies’ products in their system of operation that were on the market. The Court also took in consideration if Microsoft acted like a monopolist. Microsoft argued that its behavior proves that it didn't act like a monopolist, but the Appellate Court disagreed. "Tellingly, the District Court found that some aspects of Microsoft's behavior are hard to explain unless Windows is a monopoly product," the decision reads. "For example, the company set the price of Windows without considering rivals' prices, something a firm without a monopoly would be unable to do." The ruling cited more examples, but the...
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...2-year average product life - The company begins amortizing software costs at the beginning of the following year R&D Capitalization Method: - Year n: 60% * R&D Book Value year n - Year n+1: ½ * 60% * R&D Book Value year n (straight line amortization) - Year n+2: 0 Amortization Expenses – Exemple of 1997: AM= (258-0) + (796-398) 1995 R&D recognized in the Income Statement R&D Capitalisation 860 516 1996 1326 258 796 1997 1863 0 398 1118 1998 2601 0 559 1561 2120 957 1561 -604 1999 2970 Remarks 0 780 1782 2562 1339 1782 60% of R&D Book Value Year n -443 Amortization Exp - Dev Cost Expenses Capitalised Development Costs Amortization Expenses Development Cost Expensed Effect on Pre-Tax Proft 516 1054 1516 656 1118 -462 Microsoft Revenue Recognition Policy Effects Without considering the tax effect, the unearned revenues are down to 0 every quarter and the unearned revenues are transferred to retained earnings. 1996 Q1 Q2 Q3 Q4 Q1 Q2 1997 Q3 Q4 Q1 Q2 1998 Q3 Q4 Q1 Q2 1999 Q3 Q4 Revenue Uneared Allocation of Uneared Revenue 2085 307 2287 495 38 2311 545 38 62 2367 560 38 62 68 2405 651 38 62 68 70 2808 1013 38 62 68 70 81 3365 1285 38 62 68 70 81 127 3358 1418 38 62 68 70 81 127 161 3334 1671 38 62 68 70 81 127 161 177 3792 2038 3984 2463 4152 2888 4193 3133 5195 3552 4595 4195 5764 4239 62 68 70 81 127 161 177 209 68 70 81 127 161 177 209 255 70 81 127 161 177 209 255 308 81 127 161 177 209 255 308...
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...bid for future projects. It is closely observed by internal and external parties. In additional, the relationship with Microsoft is particularly important to Flextronics. - Pros and Cons of the choices: there is no single alternative that can solve all the problems. - Overstated infrastructure: during the bid process, Flextronics made Microsoft thought that a single system had existed in both facilities and raised it expectations very high while in fact the system was not already in place. 2. The criteria that McCusker should consider in his decisions: - Client’s satisfaction: This includes three sub-criteria: meet Microsoft’s tracking system requirements, deliver products on time and ensure product quality. - Employees’ satisfaction: Regardless which decision he make, McCusker have to ensure that employees at both factories are convinced with his decision and coordinate well with each other. - Cost-saving: The purpose of implementing the process at two different factories in two countries is to save cost (such as cost of shipping). 3. Analysis of alternatives and the consequences of pursuing them Choice 1: Datasweep in Mexico and Hungary - Pros: This choice will meet Microsoft’s expectation of a single system to track production processes. It will eliminate Microsoft’s doubts about the new system because Datasweep has been approved by Microsoft. Moreover, the system...
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...Week Six Case Study – Case 1: L’Oreal Knowledge Management Using Microsoft SharePoint 1. What are the challenges facing L’Oreal management? L’Oreal, founded in 1907, is world’s largest cosmetic and beauty company selling globally more than 500 brands. L’Oreal has five worldwide research and development centers spread over France, United States, Japan and China. To link everyone of them on the same platform of information is a difficult task. The intranet for this division must support thousands of researchers working in France, the United States, Japan and China. The intranet is required to support professional applications as well as databases on subjects including biology, patents, hair color and laboratory security. In such a vast network its difficult for teams to communicate. Team members lose interest in commercial activity when they consume more energy in communication. To overcome these hurdles and to manage its largest internet initiative L’Oreal chose SharePoint Portal Server. 2. Make a list of all the functionalities of M@sternet described in the video. What kind of knowledge management system is M@sternet? * Microsoft SharePoint products and technologies include browser based collaboration and a document management platform. These can be used to host web sites that access shared work spaces and documents, as well as specialized applications like wikis and blogs from a browser. * Users are allowed to manipulate proprietary controls or pieces...
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