Sample Essay

Business that are monopolistic like the Microsoft Corporation tend to charge differential prices for their products as this allows them to cater to different markets and segments while capturing a large market share of these segments under their own name. The motive behind the company is to use the monopolistic status of the company and the resources the corporation has ton increase the overall market share in all the customer segments while also increasing the profit level on their sales. This strategy also allows Microsoft to attract customers through segment based discounts and variant prices for their products.

Some of the barriers that are being faced by the Microsoft Company for their price discrimination strategies pertain to the increasing globalization and the resultant nature of the world as a global village. The internet has brought people closer while also enabling them to access any kind of information online. As a result the customers of the company are able to seek the geographic regions and the customer segments which are provided with discount based priced for the same product that would otherwise cost them considerably. The informed customers as a result tend to get others who fit the discounted price based customer profile to purchase the products for them thus exploiting the discounts provided by the company.

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Essay: Monopoly and Differential Prices
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