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- They would want to because they want to compete with MS
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To be perfectly frank, at this point it would be impossible for anybody to take on Microsoft head to head selling boxed software. Microsoft has too big of a war chest for anybody to hope to compete selling proprietary software that competes with MS's software. All MS would have to do is lower prices and sit it out until the other company goes under.
But MS does have its weak spots. MS is very slow (comparatively) to patch bug and security fixes. MS will work with developers, but those developers many times will have to pay MS a high price to get everything they need from them. That's where free software and service companies can compete.
Their margin of profit will be much lower than MS's, that is certain. But if they offer an overall product that is both significantly better and significantly cheaper than MS's, then they can take some of MS's market share away. It would be kind of how Dell works, they make less profit per item sold, but if the product is of high quality and is cheap then their volume will go up, and thus overall they can be quite profitable. So if everything pans out in the end, then they would indeed be maximizing the value of their shareholders, just as Dell does. - Posted by: Michael Kelly Posted on: 05/12/04 You are currently: a Guest | Members login | Terms of Use
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