...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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...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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...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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...Teaching Notes: 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...
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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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...CASE 2 - Microsoft’s Partnership with UNHCR – Pro Bono Publico? 1. Is partnership the answer and can the company leverage all its assets to contribute pro bono publico? By supporting the UNHCR, Microsoft engaged in a strategic partnership that is beyond satisfying shareholder expectations. The partnership with the UNHCR agency was not created to fulfill any financial gains. The concept was a long-term investment with promising outcomes for all stakeholders: Microsoft is supporting people in need with expertise and knowledge, helping through employee’s volunteer work, without direct return on investment. Microsoft has tremendous resources - tangible resources (capital and technology) and intangible resources (employees’ knowledge and management skills). Microsoft realized that its valuable resources can result in capabilities to reach social aspects, therefore creating value for all of its stakeholders (Deresky, 2011). Investing the company’s assets (human capital) in welfare projects contribute to social responsibility and provides its stakeholders with long-term benefits. To contribute to pro bono publico a company needs to find and develop partnerships with which to help them carry out whatever good they are trying to accomplish in the world. The world is shrinking due to the globalization that is going on currently with the Internet shrinking the time it takes to get things done, but I do not believe that there is any company large enough to take on the entirety...
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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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...1. In this case yes partnership was the answer. Microsoft was not always as focused on corporate citizenship as it is today. They had a negative imagine of being an unstoppable power buying up everything in their path. So when the Kosovo crisis came to be 1999 Microsoft stood to not only offer help to thousands of suffering people, but to also improve the company’s imagine. These partnerships succeed in doing just that. When both partners stand to gain for the partnership, as they do in this case, then the partnership is the way to go. UNHCR gained all the assistance in helping the refugees, and Microsoft gained a favorable public image. The company can leverage all its assets pro bono publico. Microsoft did in this partnership. They offered cash and software to UNHCR, also the time and expertise of employees, the management skills of executives and online marketing strategy. 2. I would say that Microsoft is creating the right partnerships when it comes to expanding their market and raising opportunities. Years before Microsoft’s partnership with UNHCR, citizens pictured Microsoft as a company that walked all over other companies because they had so much money and power. This created a bad image for them and I feel they needed to make a move to recreate their image. Helping out refugees showed that Microsoft as a company had good intentions and was there for struggling people. Not only did this raise opportunities for Microsoft with all of their new successful technology...
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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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...Summary: Microsoft is an American corporation that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Microsoft success in the computer software industry depends on employees who possess extraordinary problem solving abilities and it believes that these abilities can be measured during interviews in which applicants deal with puzzles, riddles, and insolvable questions. Microsoft realizes that its interview practices likely result in missing out on some well qualified candidates but they believe that its much worse to make a mistake of hiring someone who shouldn’t have been (a false positive) than to mistakenly pass over someone who should have been selected ( a false negative). This idea is based on the idea that it is harder to get rid of someone after they are hired and its harder for the company to thrive if too many of their employees cant solve problems under stressful circumstances. Questions: 10.1- Which abilities are measured by the specific question that Microsoft interviewing process? - The cognitive ability and the reasoning ability can measure the specific questions in the Microsoft interviewing process. Cognitive ability- refers to capabilities related to the acquisition and application of knowledge in problem solving. Cognitive abilities are relevant in the jobs that work involves the use of information to make decisions and solve problems. Example:...
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...Microsoft Displays The objective of this marketing research study is to investigate whether the displays of Neolux Corporation are as effective as they claim. This study will determine whether or not the displays are capable of increasing sales. This study will also determine if the displays are appealing for retailers as well as consumers. This study will show conclusive evidence of the displays sales capability. The study will show conclusive evidence of appeal to retailers. * Market Research steps Marketing Research Steps: 1. Establish the need for marketing research: * Determine whether or not the displays are capable of increasing sales. * Determine if the displays will be appealing for retailers as well as consumers 2. Define the research problem: * Conduct the required research to determine the sales capability of the displays * Microsoft needs to assess the amount of appeal the displays provide for consumers * Microsoft needs to assess the amount of appeal the displays provide for retailers 3. Establish research objectives: * Determine who would purchase a Segway and what they would pay for a Segway from regular consumers, workers, and industrial venues through various forms of media. These forms of media include telephone interviews, email, and direct response questionnaires. 4. Determine the research design: Descriptive * Identify which retailers find the display appealing * Among the identified retailers select locations...
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...I.TITLE CHOPSTICK ( HAND GAME ) II.GOAL The goal of the game is for a player to force their opponent to extend all of their fingers and thumbs on both hands. III.OBJECTIVES At the end of the activity the players would be able to : 1. develop their mathematical ability 2. use their agility skills IV.PARTICIPANTS YOUTHS V.INSTRUCTION Each player uses both hands to play the game, the number of digits extended on a hand showing the number of points that the hand has. Both players start with each hand having one point — one finger extended on each hand. The goal of the game is for a player to force their opponent to extend all of their fingers and thumbs on both hands. A hand with all fingers and its thumb extended is said to be a "dead hand". Players take turns to tap one of their hands against another hand that is not dead (either their own other hand, or one of their opponent's). The number of points on the tapping hand is added to the number on the tapped hand, and the player with the tapped hand should extend their digits to show the new score. The tapping hand remains unchanged. A player may tap their own hand to transfer points from one hand to the other. For example, if a player had three points on his or her right hand and one on his or her left, the player could rearrange them to have two on each hand. A "dead hand" is treated as having no points, for this purpose, which allows a player to bring a dead hand back into play by transferring points to...
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...Microsoft/Intuit Case Study Team 7 Garric Zhang Ling Liao Eric Wang 1. What factors have contributed to Microsoft’s large cash hoard? | 1985 | 1986 | 1987 | 1988 | 1989 | Cash and Marketable Securities | 18.9 | 102.7 | 132.5 | 183.2 | 300.8 | Stockholders' Equity | 54.5 | 139.3 | 239.1 | 375.5 | 561.7 | Net Profit | 24.1 | 39.3 | 71.8 | 123.9 | 170.5 | ROE | 44.22% | 28.21% | 30.03% | 33.00% | 30.35% | New Cash and Marketable Securities | 2.8 | 4.1 | 9.3 | 18.6 | 25.2 | New Stockholders' Equity | 38.4 | 40.7 | 115.9 | 210.9 | 286.1 | New Net Profit | 23.5 | 37.4 | 67.5 | 118 | 157.7 | ROE (after adjusted) | 61.20% | 91.89% | 58.24% | 55.95% | 55.12% | Increased ratio | 38.39% | 225.71% | 93.94% | 69.57% | 81.59% | | 1990 | 1991 | 1992 | 1993 | 1994 | Cash and Marketable Securities | 449 | 686 | 1345 | 2290 | 3614 | Stockholders' Equity | 919 | 1351 | 2193 | 3242 | 4450 | Net Profit | 279 | 463 | 708 | 953 | 1146 | ROE | 30.36% | 34.27% | 32.28% | 29.40% | 25.75% | New Cash and Marketable Securities | 39 | 57 | 78 | 91 | 105 | New Stockholders' Equity | 509 | 722 | 926 | 1043 | 941 | New Net Profit | 256 | 434 | 669 | 897 | 1077 | ROE (after adjusted) | 50.29% | 60.11% | 72.25% | 86.00% | 114.45% | Increased ratio | 65.67% | 75.40% | 123.78% | 192.57% | 344.43% | From the case, we can know that Microsoft outsold its nearest competitor several time to be the most profitable large public corporation in the world, and...
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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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