Straits Times. (1997, August 8). Microsoft-Apple Partnership Stuns
Computing Industry. New Straits Times - Google search. Retrieved
November 13, 2012,
*****This is the Article!!!
An interesting example of strategic behavior comes from a 1997 article
about Microsoft’s 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 Apple’s survival and,
therefore, to ensure that competitiveness in the industry remains.
Moreover, the partnership with Apple provided an additional market for
Microsoft’s 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?
In 300 words or more, please, provide your response to the above
discussion question. Further, do you think Microsoft regrets taking
action in light of Apple’s performance today? Substantive responses use
theory, research, and experience or examples to support ideas and
further the class knowledge on the discussion topic.