1. Discuss this case in the context of market structure and strategic behavior. What market structure do these firms operate in?
Mircrosoft and Apple operate in a duopoly regarding much of the software and products they produce. Microsoft's Windows 10 and Apple's macOS collectively dominate the operating system market. Open-source operating systems such as Linux based OS do exist, but only occupy a tiny marketspace and do not generate significant profits like these two industry leaders. In some cases, more competition exists such as with internet browsers. Google Chrome and Mozilla Firefox are two examples of competitive browsers Apple and Microsoft compete in. In these cases, the industry is structured as an oligarchy.

Overall, the two companies have cut out their own market space providing different products based on their preferred consumer needs. Microsoft Windows and its Office software dominate the market space on third-party vendor computers. Apple creates Mac products for its niche customer base and provides much of its own software on these machines. Collectively, these two companies occupy nearly 100% of the space in many of their market sectors.

2. Why did Microsoft need to preserve competitiveness in the industry?
Microsoft needed to preserve competitiveness in the industry to avoid being broken up as a monopoly. Anti-trust laws could have led to Microsoft being split into different segments if they were the only remaining organization with near 100% market share. The organization may have been split with one company retaining the operating system and another retaining software. This would have created opportunities for competition in both sectors.

3. What was Microsoft afraid of in the event that Apple did not survive?
If Apple did not survive, Microsoft may have faced losing a greater market share over time by being split up. Under the current duopoly structure, Apple occupies a smaller space with typically higher-priced products tailored with an increased artistic design. In the fallout of a forced anti-trust breakup, Microsoft could have faced much more competition resulting in less market share and profitability.

4. Is it possible that Microsoft regrets taking action in light of Apple's performance today?
It is unlikely Microsoft regrets taking the action they took to sustain Apple in 1997. The organization has continued to rise in the Fortune 500 to the 21st position up from 172 in 1997. Apple has soared with the development of the iPhone and iPad, but this was not a sector in which Microsoft was very competitive. Microsoft focuses on providing the leading operating system and software for the vast majority of computers used worldwide. Apple operates in its own portion of the sector turning out its own software and hardware for a broader variety of products. Although Apple has soared, Microsoft continues to maintain its strong market share in the operating system and Office suite sector.