Microsoft Case Study Windows Vista Essay - 847 Words

Over six billion dollars spent producing one of the worlds’ largest technological projects in history; Windows Vista. In 2007, Microsoft finally launched their new operating system years behind their proposed schedule and billions over budget. This essay will cover aspects over Microsofts arrangements with the development and sale of Windows vista in a monopolist market and the effects it would have if it was in a competitive market, discuss why PC’s are in a more competitive market compared to operating systems and diminishing profit of the ogolisitic market computer chip giants; AMD and Intel created. Being a monopoly, Microsoft is turning over a huge profit from retailers buying Windows Vista for a wholesale cost and marking the price†¦show more content†¦The PC market is extremely competitive. A competitive market, describes markets â€Å"in which there are enough buyers and sellers so that each has no impact on market prices† (Principles of Economics, Joshua Gans, Steven King, Robin Stonecash, N. Gregory Mankiw, 2012). Firms in the PC industry compete against each other to develop computers for multiple uses in varying price ranges, according to the specifications of the products, thus creating a market in which there are no over-ruling market powers. This market largely depends on Microsoft’s operating systems due to being a monopoly in the operating system market. With the introduction of Windows Vista on these new PC’s being developed, â€Å"Analysts are expecting a 10% increase in PC sales when compared to last year’s sales† (Tec hnology Sector at Threshold of New World Order, Kevin Allison Chris Nuttall, 2007) it is expected that new firms are to enter the market to produce PC’s. However â€Å"Isuppli estimates PC makers will have to spend 20 per cent more on components – an average desktop costing $500 to make will now cost $600.† (Technology Sector at Threshold of New World Order, Kevin Allison Chris Nuttall, 2007), suggests a thinner profit margin, as the increase in sales will be offset to varying degrees by cost of production. This may result inShow MoreRelatedMicrosoft Opens the Gates: Patent, Priacy, and Political Challenges in China.934 Words   |  4 PagesTutorial Case study: Microsoft Opens the Gates: Patent, Priacy, and Political Challenges in China. Q1: What are the risks that Microsoft has faced in operating in China and dealing with the Chinese government? Do you see these risks as increasing, diminishing, or changing in the future?Are these risks unique to China or present in other developing countries? A: There are two major risks that Microsoft has faced in operating in China. Firstly, after China joined WTO. 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