This paper is based on differentiating between market structures in Microsoft Corporation. In making the market differentiation, important microeconomic concepts, such as demand and supply, would be applied towards the company’s competitive strategies. Microsoft Corporation has grown to emerge as the largest software maker in the world besides being one of the most valuable companies in the world. To attain a competitive position, the company has been employing a number of marketing strategies that suits its market structure best.
The common market structures in which all firms operate include pure competition, monopoly, oligopoly, and monopolistic completion. For Microsoft, trends in competition have moved it from an oligopoly market structure to a monopolistic completion market structure. While operating within an oligopoly market structure, Microsoft employed strategies that made it make supernormal profits. Apple Inc. was the main and the only competitor in selling computer software and personal computers alongside other consumer electronics (Becker, 2013). The main advantage to the company was the availability of low supply against high demand. Microsoft mainly targeted the high-income consumers such as large companies and rich people in the society. As more companies entered the industry, the company had to strategize on targeting a larger market. The market supply was now increasing and thus Microsoft had to lower the price of its products.
To enhance its competitive advantage, Microsoft employs a series of market and management strategies. One of the most successful strategies is the accessibility strategy, which makes it undemanding for all consumers for its products to see, to hear, and make use of technology. In this case, the company also produces and sells personalized computers and computer products that meet various consumer preferences (Columbus, 2013). Unlike other competitors who produce computers without targeting specific people, Microsoft has employed strategies that focus on special groups such as people with impairments. Through the production and sale of computers that are special for the blind among other people which physical deformities, Microsoft products can reach a wider range of consumers at affordable prices (Columbus, 2013).
The company’s strategies are based on the company’s mission of enabling people and businesses around the world to be in a position of realizing their full potential. The company is highly committed to its customers. To reach a wider range of markets, it produces and markets products that can suit various consumers in terms of needs and financial abilities. Its products differ in terms of technology, price, and durability. The main idea behind this strategy is to target a large market that is comprised of consumers with various needs, and who is characterized by varying income abilities (Becker, 2013). The company largely employs a comprehensive, integrated, and cohesive marketing strategy.
Through this strategy, the company develops marketing objectives and specific numerical goals as well as objectives, which allow its management and investors have an actual measure of Microsoft’s marketing success. The company also takes a key step in describing its core marketing strategies. In this case, the management identifies the specific target markets, determines the company’s competitive position, and develops all elements of its marketing mix. In this case, it informs customers about the availability of a product and structures the most appropriate ways of making the products available to final consumers in an easy and timely manner. Microsoft also implements possible marketing tactics in order to achieve the company’s established goals (Becker, 2013). The company is still on top in both the industry and market of personal consumers, computer software, and related consumer electronics.
Becker, D. (2013, December 9). Microsoft Accessibility. Retrieved from http://mashable.com/2013/07/11/microsoft-reorganization Columbus, L. (2013, December 9). Microsoft's Cloud Computing Strategy and Roadmap Evident at Convergence 2013. Retrieved from http://www.forbes.com/sites/louiscolumbus/2013/03/19/microsofts-cloud-strategy-and-roadmap-evident-at-convergence-2013/