BUS640 Week 4 Discussion 1 Strategic Behavior Oligopolies

Question: #21982

BUS640 Week4 DQ1 Strategic Behavior Oligopolies Strategic Behavior Oligopolies. An interesting example of strategic behavior comes from a 1997 article about Microsofts investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apples survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsofts products the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing. Discuss this case in the context of market structure and strategic behavior. What market structure do these firms operate in? Why did Microsoft need to preserve competitiveness in the industry? What was Microsoft afraid of in the event that Apple did not survive?

Solution: #22019

BUS640 Week 4 Discussion 1 Strategic Behavior Oligopolies

A+ Please look at the attach...