Strategic Conduct Oligopolies
An attention-grabbing instance of strategic habits comes from a 1997 article about Microsoft’s funding in Apple (New Straits Occasions, 1997). The article is included within the Required Readings record. Dealing with powerful anti-trust scrutiny from authorities companies, Microsoft offered monetary assist to Apple with the intention to guarantee Apple’s survival and, due to this fact, to make sure that competitiveness within the trade stays. Furthermore, the partnership with Apple offered a further marketplace for Microsoft’s merchandise – the MS Workplace and the IE merchandise had been to be bundled with the MAC OS as one of many situations for this financing. Talk about this case within the context of market construction and strategic habits. What market construction do these companies function in? Why did Microsoft have to protect competitiveness within the trade? What was Microsoft afraid of within the occasion that Apple didn’t survive?
Guided Response: In 300 phrases or extra, please, present your response to the above dialogue query. Additional, do you assume Microsoft regrets taking motion in mild of Apple’s efficiency right now?
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