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The Strategy of Microsoft Marketing

Nothing Microsoft is accused of doing has increased the cost of operating systems to PC manufacturers or to end-users, nor have they reduced the quality of products.

Microsoft's dominant market share is the result of manufacturing a high quality, low cost product.

The issue the federal government raised in its antitrust complaint in 1998 was that Microsoft possesses a dominant, persistent, and increasing share of the worldwide market for Intel-compatible PC operating systems. The government argued that every year for the last decade, Microsoft's share of the market for Intel-compatible PC operating systems has stood above ninety percent, and for two years the figure has been at least 95 percent. More importantly, the government asserted that Microsoft committed antitrust violations to achieve its market share.

Microsoft's CEO Bill Gates remained steadfast, despite weeks of testimony, that he and his company did nothing that violated the terms of the 1994 consent decree. Gates further asserted that Microsoft is a good corporate citizen that does not use its size in an anticompetitive manner. Eventually, this case was settled with a new agreement that imposes a broad range of restrictions that address what the government believed was unlawful conduct. Among other things, the settlement requires Microsoft to offer its technology to rivals to build products that seamlessly communicate with computers running Windows┬╝ based software. In late 2002, Microsoft unveiled several business and product changes to demonstrate it was complying with this agreement.

Another question to consider is whether another firm could operate in the same manner as Microsoft. It would be fair to suggest that Microsoft's successes begin with the products themselves. Even the best marketing strategies can fail when the product or service being offered does not meet customers' needs. Victoria Murphy (2004) writes in Forbes that Microsoft's main competitio...

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The Strategy of Microsoft Marketing. (1969, December 31). In Retrieved 04:10, August 23, 2017, from
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