Purchase Solution

Microsoft's Current Market Conditions

Not what you're looking for?

Ask Custom Question

Analyze the current market conditions of Microsoft Corporation. Address the following topics in your analysis:
a. Market structure
b. Impact of new companies entering the market
c. Prices
d. Technology
e. Productivity (consider the law of diminishing marginal productivity)
f. Cost structure
1) Wages and benefits
2) Fixed and variable costs
g. Price elasticity of demand
h. Competitors
i. Supply and demand analysis
j. Impact of government regulations

Please include your references.

Thanks

Purchase this Solution
Solution Summary

This solution discusses Microsoft's current market conditions.

Solution Preview

Microsoft Corporation

Market Structure

Microsoft Corporation is a fully monopoly market which covers the 90% of the total software market. The main operation of the company is to generate, develop, manufacture, License and support software product for different computing devices. Due to its monopoly market the company produces a level of output where its market revenue equals its market cost. Company non pricing strategies are licensing, research and development and branding of its product. Within few years many more companies has entered into the market and this is the reason the market structure looks out to be in the monopolistic competitive mode. The level of completion in the market is growing with new firms entering.

Impact of new companies entering the market

With more and more companies entering into the market the structure of the market is changing from monopoly of Microsoft to the monopolistic competition. Due to this the level of competition in the market has increased and the price of the product is mainly determined by the market forces. Due to the competitive pressures is resulted result in decreased sales volumes, price reductions, and/or increased operating costs, such as for marketing and sales incentives, resulting in lower revenue, gross margins, and operating income for the ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Microsoft: Challenges in China and other global developments

    In an 837 word solution, the response summarizes the current troubles with China, and other global developments.

  • Microsoft's working captial, current ratio,acid-test ratios

    Calculate Microsoft's working captial, current ratio, and acid-test ratio at June 30, 2004, and at June 30, 2003. b. Calculate Microsoft's ROE for the years ended June 30, 2004 and 2003. c.

  • Department of Justice lawsuit against Microsoft

    First, Microsoft's share of the market for Intel-compatible PC operating systems is extremely large and stable. Second, a high barrier to entry protects Microsoft's dominant market share.

  • Demand, Market Surveys, Market Experiments, Linear Regression

    Can you find examples of Microsoft's foundation for growth and success in adjacent businesses? A) How do you think Apple Computer determines demand, market surveys, market experiments, linear regression?

  • Key elements of Microsoft's marketing for the Xbox

    Therefore Microsoft's marketing team had to find out, who their target customers are and with what marketing strategy they could reach their challenging goal to become leader in the game console market.

  • Liquidity, activity, financial leverage analysis

    Calculate Microsoft's working capital, current ratio, and acid-test ratio at June 30, 2006 and at June 30, 2005. b. Calculate Microsoft's ROE for the years ended June 30, 2006 and 2005. c.

  • Marketing Excellence: Microsoft

    Through the application of a political, economic, social, and technological (PEST) analysis, what are the current environmental factors impacting Microsoft? 3.

  • Vertical market software

    204746 Vertical market software Does Microsoft's entry into industry-specific applications signal the end for smaller industry-specific software developers? What changes in strategy by such developers are necessary to compete with Microsoft?

  • Microsoft

    What is the current market price of the company's common stock? What is your stock's Beta? What is Microsoft's stock's required rate of return using the Capital Asset Pricing Model (CAPM)?

View More Related Solutions