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
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