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Technology Stocks : How high will Microsoft fly?
MSFT 485.92+0.4%Dec 19 9:30 AM EST
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To: Alan Buckley who wrote (4872)1/30/1998 6:18:00 PM
From: X-Ray Man  Read Replies (1) of 74651
 
Just don't agree with:

"dominating markets by delivering better value than others."

but agree that:

"It is an aggressive, productive company dominating markets".

I believe it does so by its business practices and marketing
saavy, and not by virtue of better product or value, except
in as much as most people by a product today because it is
the defacto "standard" because of existing market share. Simple
positive feedback system, that may well preclude competition
with better products from entering market. I hear this all the
time from MSFT clients - it ain't the best, but its the standard,
or its competitors might go out of business.

Precisely the sort of situation anti-trust laws are to help
avoid. But this situation is different, because the consumer
themselves choose to avoid other products just because they
are from another vendor. Defacto lack of competition. Unclear
how DOJ should respond. Knock out one or two of the remaining
fringe competitors for OS, for example, and DOJ has a case to
regulate the monopoly. Getting close to that for Office, too.
Very strange... Can't claim competition is keeping down price,
because margins are excessively high compared to both competitors
and other computer products. If their were a true competitor to
Office, it would be selling for a fraction of current price.

JMO
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