Essay on Global Scale Of The Computer Industry

2422 Words May 5th, 2016 10 Pages
John Dudivisikiy (2015, [online]) argues that new start-up companies coming into the computer industry are unlikely to threaten Microsoft because Microsoft operates globally with huge cost effectiveness derived from economics of scale. Start-up companies are unlikely to have the funds with which to compete.

Start-up companies are unlikely to have the huge funding and economics of scale along with the technical knowhow required to compete with such a huge global company such as Microsoft (Dudivisikiy, 2015, [online])

Dudivisikiy (2015, [online) points out that, ‘due to its global scale of operations Microsoft devives tremendous cost advantages out of the economics of scale and this advantage is not available to new entrants’.

It is hard for new entrants to compete, ‘due to its global scale of operations Microsoft devives tremendous cost advantages out of the economics of scale and this advantage is not available to new entrants’. (Dudivisikiy, 2015, [online)
However, in terms of the bargaining power of potential customers, a number of ways factors that the bargaining power of customers could be boosted includes price range of Microsoft products and services and the options of a large choice of similar products and services offered by Microsoft competitors. Also, normally there are usually no other costs for customers to stop purchasing from Microsoft in favour any of their competitors and this fact also boosts the bargaining power of customers. (Dudivisikiy, 2015,…

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