Eco/365 - Current Market Conditions Competitive Analysis

Current Market Conditions Competitive Analysis

Tamara Channel, Arthur Rodriguez, Melody Scott, and D’Andrea Stokes

ECO/365

September 21, 2015

John Ilokwu

Current Market Conditions Competitive Analysis

        In 1975, Microsoft’s main focus was software (Microsoft, 2015). The vision of its founder was to see a computer on each desktop.  The dominating company is the leader in many industries. Microsoft has displayed a portfolio of various resources, global operations, critics and customers. This essay will discuss an effective recommendation to maximize Microsoft’s profit making potential and successfully compete in the new market.

History of Microsoft

        In the early 1970s if you had any type of office job you more than likely relied on a typewriter.  If you needed to copy a document you would either have to use carbon paper or use a mimeograph.  There are not many people that have heard of microcomputers, but two young men that were considered computer geeks by the name of Bill Gates and Paul Allen decided to come together in 1975 and form a partnership called Microsoft to ensure that personal computing would become the path to the future.

        In August 1977, Microsoft unlocked Japan’s first international office, ASCII Microsoft and in 1981, the company incorporated in Washington state and converted to Microsoft Inc.  At this time the Company President was Bill Gates, and also the Chairman of the Board, and Paul Allen was the Executive Vice President (Microsoft, 2015).   In 1988, Microsoft was considered the world’s largest personal computer software company based on sales (Investopedia, 2015).

        During the next several years, Microsoft begins to change the way we work today.  And as the years continue to progress Microsoft continues to stand out as one of the leading software companies. The corporation is now headquartered in Redmond, Washington.  

Factors that Affect Demand, Supply, and Prices in the Market

        Microsoft looks at all factors that have an effect on supply and demand, as well as prices in the same market that the competitors are operating in.  Decrease in demand produces excess supply and causes prices to fall.  However, if the demand for that product does not increase, discontinuing the product or dramatically decreasing output will need consideration.  The reverse is also true; an increase in demand will bring an increase in price and quantity of the goods to sell; as goods sold increases, output is increased.