Monopoly Market Structure Is One Major †Myassignmenthelp.Com

Question: How To Monopoly Market Structure Is One Major? Answer: Introducation In the area of economic, a monopoly market structure is one major types of market structure. In a monopoly market structure only a single firm succeeds in a particular industry. In other words, it can be said that, in a monopoly market structure, only one firm supplies products or services in the marketplace. No other alternates of that product or service would be available in the market. In monopoly system, an organization does not face a situation of competition because of it does not have any opponent (Vault. 2017). Along with this, on the basis of the given case analysis, there are some major characteristics of the market, which has created monopoly market for Microsofts operating system. For case, Microsoft is the sole organization that developed assorted applications such as: Internet Explorer, Windows Digital Media Player, and so on with its operating system; and these applications of the company provided monopoly power to Microsoft Corporation. On the other hand, Microsoft Corporation released the advanced versions of the products of its competitors. The company did research earlier to recognize that which types of products and services they will launch in the market. After recognition these products/services, Microsoft released latest versions of those products or services to enjoy the advantages of monopoly market in an appropriate manner. For case, Microsoft launched Internet Explorer to compete with Navigator and to make it close to Navigator. Moreover, Microsoft integrated Internet Explorer as well as Media player with Windows. These features of Microsoft created monopoly market that operating system of Microsoft enjoyed. Microsoft launched a disk to take monopoly power in the market (Boyes Melvin, 2015). With the help of the disk, users would be able to take tour of windows at their home and offices. The users became able to training of all the software and applications with the disk launched by the Microsoft. So, ac cording to me, the above characteristics created monopoly market that operating system of Microsoft enjoyed. With reference to the case suggest, Microsoft might differ if this had been a (monopolistic) competitive environment. Monopolistic competition is a situation of imperfect competition where lots of producers sell differentiate products to meet the needs and demands of the customers (Vault. 2017). Along with this, in a monopolistic competitive environment, Microsoft would not be a single supplier of products or services. It will face a situation of high competition in the marketplace. It is because of many producers will be there to provide differentiate products or services to users. By competing in a monopolistic competitive environment, Microsoft would not be a producer of a sole product or service. User would not be obliged to buy the software and applications of Microsoft. They may choose other seller to buy similar software and applications to fulfill their needs at lower prices. On the other hand, a monopolistic competitive environment may reduce the revenues and market share of Microsoft. The organization may lose its control and would not be able to have control on the entire market. Moreover, it is true that in a monopolistic competitive environment, customers would not be able to buy perfect substitutes of their demands products services, software, applications, etc. But, they will definitely get the similar products as well as services in the marketplace (Boyes Melvin, 2015). In this way, the market positioning, market share, market demand supply, productivity, and profitability of Microsoft might differ in a monopolistic competitive environment. There can be seen either an increase or a decrease in the positioning, market share, productivity, and profitability of Microsoft Corporation in the market. Oligopoly is a type of market structure in which few firms operate in the marketplace. In this type of market structure only some firms have control on the whole market. These firms have large majority of market share in the marketplace. Along with this, only a few firms dominate in an oligopoly market structure; so there is possibility that some other small firms may operate in the marketplace. An oligopoly is very much similar to a monopoly market structure. A major difference is that in a monopoly market one firm dominate the entire market; while in an oligopoly market two or more firms may control the whole marketplace (Hall Lieberman, 2007). Moreover, with reference to the given case, it is clear that United and Continental Airlines operate in an oligopolistic market; so they have control on the whole market. These are the only firms those manage long distance flights; and domestic as well as international travel in an effectual and a proper manner. On the other hand, oligopolistic markets work for the good of both United Continental Airlines. It improves the profits and revenues of these airlines. These airlines cover top four domestic routes that enhance the popularity of the airlines in the eyes of customers. These airlines have the biggest hub for international flights. There is no other airline available in the nation that provides the facility of international flights to the travelers (MOUAWAD McGEEHAN, 2010). . Moreover, due to the merger, the growth opportunities of these airlines have increased in both domestic and international markets. They do not face a situation of high competition because of they do not need to compete with lots of competitors. In addition to this, both these airlines may upgrade their services; and may charge high prices for these services to enjoy high profits. There is no other big airline that may provide similar services to customers. Moreover, with reference to the case, high prices of airlines may reduce the profits of airlines; and customers may move towards other airline services. So, it can be said that, oligopolistic markets will work in the favor of these airlines. But, they need to implement some strategies to build a strong customer base. They just need to provide high quality services at the lower or reasonable costs. They need to invest some money on the safety and protection of the customers (Hall Lieberman, 2007). Overall, the merge would be beneficial for both these airlines; and they would be able to enjoy the advantages of oligopolistic markets in an effectual manner. References Boyes, W., Melvin, M. (2015). Microeconomics. USA: Cengage Learning. Hall, R. Lieberman, M. (2007). Economics: Principles and Applications. USA: Cengage Learning. MOUAWAD, J., McGEEHAN, P. (2010). Rumblings in the New York Skies. Retrieved From: https://www.nytimes.com/2010/05/05/business/05airfight.html?ref=business_r=1 [Accessed On: 17th May 2017] Vault. (2017). MICROSOFT CORPORATION. Retrieved From: https://www.vault.com/company-profiles/computer-software/microsoft-corporation/company-overview.aspx