Research Paper: Business and Society: The Microsoft

Pages: 8 (2361 words)  ·  Bibliography Sources: 5  ·  Level: College Junior  ·  Topic: Education - Computers  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] It is the violation of their right of freedom to participate and enjoy market share according to their abilities (Economides, 7).

Despite ignoring all these laws and rules, Microsoft acquired largest market share by its anticompetitive behvaiour, which can be defined as a behaviour consisting of a range of decisions which are made to actually or potentially harm the competitors by using the power of monopoly (Hill & Jones, 367). This way the firm becomes secure and enhances its long run prospect.

This act of Microsoft had a very bad impact on the society; indeed it harmed the society by creating many problems for the people belonging to different divisions of life. First, competitors were left behind, as they were not able to sell their products. Their business was stuck and they suffered from big losses. They were also not able to further expand their business, in result of which there were no new job vacancies in this field, which created problems for the one looking for jobs in these companies.

Second, computer makers were also in trouble as they were bound to follow Microsoft Instructions due to the agreements, they were forced to make. Third, consumers also badly suffered as they were not left with any other option or choice; they could not buy any other companies product and were bound to pay Microsoft product's higher price (Areeda, Phillip and Kaplow, 512). It has only happened in the last decade that other alternatives like Macintosh and Linux can be seen competing in the market and consumers have a choice to buy something other than Microsoft.

It was after this little decline in the Microsoft's PC market that it started manufacturing games and other softwares but even in that case, it made a wonderful strategy. If a consumer buys product X of Microsoft, than in order to get more from it, he will have to buy Product Y and Z. too. He cannot use same type of product of some other brand. Currently Apple is also using this strategy. In order to use MacBook, consumers are bound to use softwares and accessories of Apple. They cannot use operating system or softwares of some other company.

All these problems which affected people belonging to different aspects of life harmed the society and economy and increased problems for the government too, which is actually responsible for improving the economy and system. The action of a huge company like "Microsoft" to pull out of a community was a serious issue and could have threatened the future of the economy and hurt communities and nations.

These illegal actions of Microsoft were also taken to the Court where it was ruled that although Microsoft did not close ways for others to compete in the market but its actions were unethical which prevented rivals from using the lowest cost means of taking market share away from Microsoft. The court further ruled that Microsoft was abusing its monopoly power and under consent in 2001, the Microsoft agreed to stop doing certain acts that were actually a resistance and were preventing the development of competing browser software.

The case was resolved in way that Microsoft was divided into two companies; one company was given "Operating Systems" job and other was given "applications." The court also imposed severe business conduct restrictions on Microsoft, regarding the pricing, agreements and all other such techniques which Microsoft was using to play monopoly in the market.

Conclusion

It is very important for organizations to make their decisions ethically because organizations have an impact on the efficiency and effectiveness of a society. Business conducted in an ethical way not only increases the profitability of the company but also improve the standards of living of the society. Keeping in mind the importance of ethical activities, several types of laws have been passed so that the business does not perform any unethical practices which harm the society by creating problems for the people belonging to different sectors of the society. Organizations must follow these laws and does not harm others only for the sake of making profits and achieving personal goals.

Microsoft's case in known to the world but the business organizations never learn and do anything for competing in market. Currently Apple sued Samsung in the Court for copying its I-phone and manufacturing Samsung Galaxy II, which is a copy of I-phone and is available in market having same style and features but with cheaper rates.

Works Cited

Areeda, Phillip and Louis Kaplow. Antitrust Analysis, Aspen Law & Business, 1997.

Economides, Nicholas. United States v. Microsoft: A Failure of Antitrust in the New Economy, UWLA Law Review,

at http://www.stern.nyu.edu/networks/UWLA.pdf. 2001

Economides, Nicholas. The Microsoft Antitrust Case, A Case Study For MBA Students. Stern School of Business:

New York University, New York. 2003

Eisenach, Jaffrey and Lenard, Thomas . Competition, innovation, and the Microsoft monopoly: antitrust in the Digital Market Place. Progress & Freedom Foundation: USA., 2001.

Hepburn, William and Lopatka, John. Microsoft case: antitrust, high technology, and consumer welfare. The University of Chicago Press, 2007.

Hill, Charles and Jones, Gareth. Strategic Management Theory: An Integrated Approach. 9th Edition, South… [END OF PREVIEW]

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