Market Structure of Software Business

The business has been dominated by very few of the companies and it will not be unjust to say that out of all the companies, one company has maintained the most of the share in the market and is considered as the greatest producer of software and other concerned products.
That company is the company of Microsoft which has given this business shape of a Monopoly by dominating the revenues and the products thus controlling the prices and quality of the goods and services produced by it.

Since the commencement of the technological era and the advancement in the field of computers and software generation, there have been vast interpretations and scrutiny relating to the market arrangement, pricing and strategic performance of the software development companies.
Every time an innovative advancement come up and grows into a vibrant growth approach the initial participants expand enormous benefits as they become the first to add to the practice, the invested resources and the public, Therefore, when challengers approach the market, they have to pull alongside prior to the fact that they can struggle to gain the same status. Microsoft can be said to be a good illustration of this fact.

Microsoft developed into a monopoly for the reason that it was able to generate and put into effect worldwide data communication benchmarks for personal computers and they did it by producing series of operating systems and by presenting the type of mechanism that may well run their Operating Systems so their merchandise was able to be in each market place that they wanted it to be, thus making it a monopoly in the software business. (Linzmayer 1994)

The software business makes Microsoft a monopoly because of its character of having the advancements in the technology and the economies of scale which do not render it possible for other companies to compete with it.