What type of market structure is Microsoft in?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

Microsoft is in a unique situation. They operate in several different, yet similar (and converging) markets, and have a vast power differential between the markets. In one area, they have almost complete dominion over their market, holding something like 95% of the market share. In the other main market, however, they are far more niche, even though they provide high quality products.

In both the software and computer products markets in which Microsoft finds itself, it operates within an oligopoly marketplace—a market that is dominated by several main, powerful businesses. This type of marketplace is not a monopoly, but the same strength is spread out between a few select competitors. It exists in a state of internal competition (that is, between those companies) while also providing significant pressure against market entry, like a monopoly can do.

In the software space, Microsoft is the single largest shareholder, having crafted and now dominated the majority of modern programs in...

(The entire section contains 4 answers and 802 words.)

Unlock This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial
Last Updated by eNotes Editorial on December 3, 2019
An illustration of the letter 'A' in a speech bubbles
Approved by eNotes Editorial Team