Microsoft Windows and Apple Mac iOS is an oligopoly.

  

Apple V.S Microsoft Windows

            In these two large producers for computer operating systems, oligopoly is applied between Apple and Microsoft Windows firms. Oligopoly is defining as few firms that dominate in the market structure, but they also competing in each other. According to the information that I have read, computer operating systems in 2012 are dominated by a few big firms that are provide unique products for supporting technology which is those two. The barrier to entry the market is high which is difficult since these two computer operating system is dominating the market and this high entry barrier is present due to copyrights, patents, advertisements and also economies of scale (EOS).

            In oligopoly, they face dilemma between cooperate or compete with each other. If Apple and Microsoft decide to compete with each other, they will keep continue producing a better computer system. Example, the latest Microsoft windows operating systems is windows 8 and the upcoming operating systems for Apple is iOS 7 which is competing with windows 8. However, every firm that practice oligopoly will have a temptation to cooperate because in oligopoly there is small number of firms. If Apple and Microsoft windows cooperate together they will form an illegal group which known as Cartel. They will cooperate together to limit output, price and increase profits. But it is illegal and dangerous because cartel often breakdown and maybe that is a reason until now they are still competes with each other.  By the way, which of them will earn more profits?

            In my opinion, both firms also will earn profits due to mutual interdependence of their operating systems and brand loyalty. I would like to suggest these two firms are compete with each other. What is your opinion? J

Reference Link

http://www.ehow.com/info_8233970_oligopoly-market.html

Written By, 

Tha Nak 
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