Case Study Microsoft Ethics
Ethics Big Case 2
Microsoft Manages Legal and Ethical Issues
Summary:
Microsoft has a blinding reputation and presentation with the public and its users. They investment in the communities, the youth and globally. Not only the company invests but the employees contribute. As Always Bill Gates take it to the top with the William and Melinda Gates Foundation. Microsoft’s efforts and dedication is admirable. Its support of start-up software companies, creates a unique composition of company characteristics, that somewhat contradict their actions within the competitive business world. Antitrust issues should be Microsoft’s middle names. From the early 90’s till now Microsoft has been involved in number antitrust issues, anti-competitive activities, and monopolist tactics. During all of the investigations Microsoft is not very willing to provide information. They are very combative and they have a swindling tactic. Despite all of Microsoft’s misconduct in the business world they are still thriving, expanding and innovating.
Questions:
1.) The unique aspects of the software industry that allowed Microsoft to actively become a monopoly and be involved in anticompetitive practices are the abilities to bundle, the size and abilities of the competing companies along with Microsoft inability to share. The very first investigations (reported in the text) was Microsoft selling to OEMs and at 60% discount as long as they paid Microsoft per processor not per copy. So every computer that the OEMs sold they paid Microsoft instead of every computer that had Microsoft installed on it. This concept was double charging the consumer even if they opted for a different operating system, they were still paying Microsoft. Also any OEM could accept the offer of 60%, this cost being unbeatable economically, and squashes out the competition because who would pay full price? In October of 1997 Microsoft was faced again with a violations of previous court decisions involving the
Microsoft Manages Legal and Ethical Issues
Summary:
Microsoft has a blinding reputation and presentation with the public and its users. They investment in the communities, the youth and globally. Not only the company invests but the employees contribute. As Always Bill Gates take it to the top with the William and Melinda Gates Foundation. Microsoft’s efforts and dedication is admirable. Its support of start-up software companies, creates a unique composition of company characteristics, that somewhat contradict their actions within the competitive business world. Antitrust issues should be Microsoft’s middle names. From the early 90’s till now Microsoft has been involved in number antitrust issues, anti-competitive activities, and monopolist tactics. During all of the investigations Microsoft is not very willing to provide information. They are very combative and they have a swindling tactic. Despite all of Microsoft’s misconduct in the business world they are still thriving, expanding and innovating.
Questions:
1.) The unique aspects of the software industry that allowed Microsoft to actively become a monopoly and be involved in anticompetitive practices are the abilities to bundle, the size and abilities of the competing companies along with Microsoft inability to share. The very first investigations (reported in the text) was Microsoft selling to OEMs and at 60% discount as long as they paid Microsoft per processor not per copy. So every computer that the OEMs sold they paid Microsoft instead of every computer that had Microsoft installed on it. This concept was double charging the consumer even if they opted for a different operating system, they were still paying Microsoft. Also any OEM could accept the offer of 60%, this cost being unbeatable economically, and squashes out the competition because who would pay full price? In October of 1997 Microsoft was faced again with a violations of previous court decisions involving the