Product differentiation can be considered as socially desirable as it allows the different market segments to have differentiated products available to them that focus on the specific type of service they might require from a product.
Especially in the case of software businesses and general consumers for the Microsoft products are significantly different in terms of their requirements form operating systems and application software. The company therefore differentiates the products and services it provides to these customer segments on the basis of their specific requirements.
The analysis of the Microsoft Corporation has revealed that the company has been enjoying its monopolistic status and role in the global industry for computing software, however in the regional markets local competition as well as competition imposed by the other competing firms is increasing due to the inefficiencies of the monopoly. The trend as a result is seen towards an oligopolistic market where Microsoft would be one of the large firms alongside others in an oligopolistic structure. This structure however only applicable to some segments of software specially those pertaining to gaming and entertainment.
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