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Do you think Microsoft has "market power" with its MS Office software? Explain

Marketing Jan 14, 2021

Do you think Microsoft has "market power" with its MS Office software? Explain.

Expert Solution

Yes, I think Microsoft has market power with its MS office software. This is because Microsoft office software controls more than 70% of the total market share for office software. With such a high market share, the firm can manipulate the office software's price without affecting the number of their customers. Due to the ease of usage and creativeness, most office software firms cannot compete with Microsoft Office. Thus, even if the firm increases the MS Office software price, it will not affect the customer numbers because no other software can perform better. Other office software like libre office and Free Office have been unable to meet the creativeness and user-friendliness of MS Office. Thus, due to Microsoft's creativity, the firm dominates most of the Office software markets.

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